Grameen Mutual Fund floats 3rd scheme this year

The third scheme of Grameen Mutual Fund One will be floated this year following the success of earlier two schemes, a move that will strengthen the mutual fund's contribution to the country's stock market.

The AIMS of Bangladesh, the asset management firm of Grameen Bank, the sponsor of Grameen Mutual Fund One, will float the minimum Tk 300 crore scheme through initial public offering (IPO) and private placement.

“Launching of the third scheme is being designed under the sponsorship of Grameen Bank,” said Yawer Sayeed, managing director of AIMS (Asset and Investment Management Services) of Bangladesh.

“It will be a remarkable addition in the capital market and mutual fund industry,” he said.

The 'Grameen Mutual Fund One' was established under the Trust Act 1882, and registered under the Registration Act 1908 on May 09, 2001. The fund received SEC registration on August 27, 2001.

With a 15-year initial tenure, it is the first mutual fund that floats multiple schemes in Bangladesh.

The face value of per unit of the third scheme will be Tk 10.

Apart from the Grameen's third scheme, the AIMS plans to launch its own second mutual fund targeting the non-resident Bangladeshis (NRBs).

The size of the mutual fund, styled 'AIMS 2nd Probashi Mutual Fund', will be Tk 400 crore to Tk 500 crore.

Ten percent of the fund will be offered to the local investors through IPO, the AIMS MD said.

“We are committed to develop the mutual fund sector of Bangladesh capital market,” he said, adding that the AIMS will go for sectoral and fixed termed mutual funds in future.

The more mutual funds come the more the market becomes vibrant, market analysts said, pointing to the fact that mutual fund's contribution is bigger than other securities in developed countries.

The contribution of the existing mutual funds in terms of the local stock market capitalisation is around 3 percent, which is more than 50 percent in many developed countries.

Presently, 14 mutual funds are being traded on the Dhaka Stock Exchange.