The unit holders of AIMS First Guaranteed Mutual Fund at a meeting on Wednesday decided to extend the tenure of the fund by another 10 years.
As per the approval, the tenure of the fund will be extended to June 30, 2025 from July 1, 2015 subject to the approval of the regulatory authorities.The unit holders at the meeting also allowed Bangladesh General Insurance Company Limited to continue as the trustee and AIMS of Bangladesh Limited as the asset manager of the fund for the extended period.
‘As per the securities laws, three proposals were placed before the meeting — liquidation, time extension and conversion — of the fund. Considering the performance of the fund unit holders voted for extension of the fund.’ Yeawar Sayeed, managing director of AIMS of Bangladesh Limited told New Age.
‘We were also expecting same decision from the investors as the fund is performing better compared with other funds,’ Yeawar said.
He said that conversion proposal was also discussed at the meeting, but most of the investors denied to approve the proposal as it would result delist of the fund from the stock market that will put extra burden on the investors.
BGIC, the trustee of AIMS First Guaranteed Mutual Fund, on May 29 called the meeting as the fund becomes matured on June 30, 2015.
According to the latest report of the fund, the net asset value per shares stands at Tk 50.06 at current market price basis against cost price of Tk 18.33 per unit. The face value of per unit of the fund is Tk 10.
The latest amendments to the mutual fund rules have allowed all the mutual funds to extend tenure if unit holders approve.
The amended rules have also allowed conversion of a close-end mutual fund into an open-end mutual fund by issuing reinvestment units to its existing unit holders to increase the fund size.
-With New Age input
