The Bangladesh Securities and Exchange Commission (BSEC) has approved the draft prospectus of UCB Taqwa Growth Fund – a new open-end mutual fund.
The initial target size of the Shariah-compliant fund is Tk35 crore, of which Tk5 crore would be subscribed by its sponsor UCB Asset Management Ltd.
The remaining units of Tk10 face value each will be offered to investors.
Sandhani Life Insurance Company is the trustee of the fund while Brac Bank will act as the custodian, BSEC said.
Open-end mutual funds are gaining popularity in Bangladesh amid the increasing awareness about the importance of long-term stable investments.
Unlike closed-end funds, open-end funds have no maturity and their units are not tradable at bourses. Investors instead buy and sell those with the asset manager concerned or their authorised agents.
UCB Asset Management, a subsidiary of United Commercial Bank Ltd, is a new generation asset management company with a special focus on and preparation for quality investment management service.