Capitec Asset Management to launch Tk200cr mutual fund
Capitec Asset Management is soon going to launch a Tk200 crore new closed-end mutual fund titled "Capitec Grameen Bank Growth Fund".
The asset manager announced on Sunday after signing an agreement with Grameen Bank to be the sponsor, and Investment Corporation of Bangladesh (ICB) to be the trustee of the fund.
The fresh fund would help increase money flow in the capital market, Capitec Managing Director (MD) M Mahfuzur Rahman told The Business Standard, adding that his firm has built a reputation of a decent track record in the asset management business over the last five years, and that was why the sponsor and some other large institutional investors relied on Capitec.
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Sponsor Grameen Bank has already invested Tk100 crore in the new fund and the rest of the amount will be raised from the public before the units of the closed-end fund become tradable in the stock exchanges, following regulatory approval.
Already managing over a hundred crore taka under three open-end mutual funds, Capitec generated 8.19% to 16.17% annualised return for its unit holders, as of December 2022.
"Since inception, none of our funds had a year without dividends. In the last two consecutive years, annual cash dividends were 10% to 15% from the existing funds," said Rahman.
No investment in private companies also helped Capitec gain investors' trust as it reflects the asset manager's preference for transparency, he added.
The objective of the Capitec Grameen Bank Growth Fund is to generate risk adjusted return in the forms of capital appreciation, dividend income, and to pay lucrative dividends by investing the funds in authorised instruments of the capital market and money market, according to Rahman.
Capitec Asset Management Chairman Hasan Rahman, MD M Mahfuzur Rahman, Chief Operating Officer Sumit Paul, Grameen Bank Chairman Prof Dr AKM Saiful Majid, Acting MD Md Mosleh Uddin, ICB MD Md Abul Hossain and other top officials of the three organisations were present at the signing ceremony held at the Grameen Bank headquarter in the capital.
