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Grameen One Fund wants 10-year extension

  • Published at 07:19 pm June 28th, 2014

The tenure of Grameen Mutual Fund One, a closed ended private mutual fund, has been proposed to be extended by 10 years.

The unit holders of the fund came to the decision at a meeting held on June 26.

The fund was scheduled to be redeemed on June 30 next year. Now it will end on June 30, 2025 under relevant provisions of the SEC (mutual fund) Rules 2001, if the fund is extended.

The extension is, however, subject to be approved by the regulatory authorities.

Unit holders of the fund also confirmed the continuation of the fund’s currently appointed trustee, Grameen Fund along with the same asset manager, AIMS of Bangladesh Limited.

The fund’s closing price last week was Tk41.6 per unit while its net asset value under current market price stood at Tk34.28 per unit as on June 19.

The unit’s trading at a premium over its asset value shows the current unit holders would likely to incur erosion of value if the redemption were to take place.

The fund’s sponsor is Grameen Bank, which has provided an initial capital of Tk1.65 crore.

The fund has total assets of Tk87 crore under management as on June 19, according to a disclosure made by the fund manager on June 22.

The fund has recently outperformed the sector in terms of increasing its net asset value over the past four weeks, data shows. The increase is 1.4% excess return over DSEX, shows a weekly mutual fund sectoral report of a brokerage in the capital