The trustee, however, must take approval of the BSEC
Majority unitholders of two mutual funds do not want LR Global as their asset manager following a dispute over liquidation of fund.
DBH First Mutual Fund and Green Delta Mutual Fund unitholders sent letters to LR Global trustee Bangladesh General Insurance Company (BGIC) in this regard yesterday.
They want to appoint IDLC Asset Management Limited as the new asset manager of the funds with immediate effect, according to the letters.
Sources said around 72.50% unitholders of DBH First Fund and 70.12% of Green Delta Mutual Fund called for changing the asset manager.
As per mutual fund rules 2001 of the Bangladesh Securities and Exchange Commission (BSEC), if two-thirds of unitholders of a mutual fund want to cancel an asset manager, the trustee has to cancel the asset manager.
The trustee, however, must take approval of the BSEC.
For the change of asset management company of a mutual fund, the unitholders' meeting was not required.
Despite several attempts over mobile phone, LR Global chief executive officer Reaz Islam could not be reached for comments.
Among the unit holders BRAC Bank, NCC Bank, EBL, Agrani Equity, Delta Life, Green Delta Insurance, IDLC Investments, IDLC AML, VIPB Asset Management, Edge Asset Management, Vanguard Asset Management, Delta Brac Housing Finance, Delta Life Insurance and Asian Tiger Capital Partners Asset Management applied for the change.
Earlier, 78.42% unitholders of the closed-end DBH First Mutual Fund sought to liquidate the fund, which will mature in February 2020.
The unitholders’ proposal came after LR Global had sought extension to the BSEC for another 10 years for the mutual fund.
LR also sought BSEC permission to convert the closed-end DBH First Mutual Fund into open-end fund.
On February 2015, the BSEC banned LR Global from floating new fund or scheme for one year after finding the asset manager invested in some non-approved private equities breaching securities rules.
In addition for its wrong doing, the commission also fined LR Global Tk50 lakh and trustee Bangladesh General Insurance Company Tk25 lakh and auditor Hoda Vasi Tk5 lakh.