Bangladesh Fund to start investment from today

http://www.thefinancialexpress-bd.com/more.php?news_id=134649&date=2011-05-05

Bangladesh Fund to start investment from today
SEC issues certificate of registration
FE Report

The country’s largest ever Tk 50 billion ‘Bangladesh Fund’ will start investment in shares from Thursday (today), officials said.

The securities regulator Wednesday issued the certificate of registration to the fund, enabling the latter to start investment both in capital and money markets.

“We will start our investment on Thursday in the presence of journalists,” Fayekuzzaman, managing director of the Investment Corporation of Bangladesh (ICB) told the FE.

Since the Securities and Exchange Commission (SEC) has issued the certificate of registration, the Bangladesh Fund is now free to make investment, said Mohammad Saifur Rahman, the spokesman of the SEC.

He said the state-run Investment Corporation of Bangladesh (ICB) Tuesday submitted the certified copy of the trust deed of Bangladesh Fund to the SEC. The registration wing of the SEC completed all formalities on receipt of the deed.

“From now on Bangladesh Fund is able to make investment as per securities rules,” Rahman told the FE.

The securities regulator approved the fund’s trust deed and investment management agreement on April 18 last.

The ICB and seven other state-owned enterprises took an initiative on March 6, to launch the country’s largest ever open-end mutual fund, aimed at supporting the troubled stock market. They also termed Bangladesh Fund as a “contingency fund”.

The ICB is the sponsor of the fund and other seven state-owned enterprises are the joint sponsors. The joint sponsors are: Sonali Bank, Janata Bank, Agrani Bank, Rupali Bank, Bangladesh Development Bank, Sadharan Bima Corporation and Jibon Bima Corporation.

The ICB has contributed Tk 5 billion to the fund and the joint sponsors are supposed to contribute Tk 10 billion in total.

The source said, meanwhile, the fund manager of Bangladesh Fund has designed a guideline to invest its fund. As per the guideline, the fund manager will purchase the shares of the companies whose price earning (P/E) ratios are not above 20. The fund, however, would invest in stocks of banks and leasing companies having P/E ratios up to 10 and 15 respectively.

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