Bangladesh Securities and Exchange Commission (BSEC) has approved the draft prospectus of UCB AML First Mutual Fund, an open-end mutual fund.
The approval was given on Wednesday at the 751st commission meeting, said a press release.
Sandhani Life Insurance Company is the trustee and Brac Bank is the custodian of the fund while UCB Asset Management Limited is the sponsor and asset manager.
According to BSEC, the primary target size of the fund is Tk20 crore. Of this, the sponsor will provide Tk2 crore and the remaining Tk18 crore will be collected by selling units of the mutual fund to investors at a face value of Tk10 each.
Typically, the asset management firm will focus on mid- and large-cap stocks, while capital protection will get high priority.
Open-end mutual funds have no mandatory endpoint, and according to current regulations, their units are not listed with stock exchanges.
Therefore, investors buy and sell open-end fund units based on current asset value from the asset manager's office or through authorised agents.