Vanguard Rupali Bank Fund sets Oct 26 SGM for open-end conversion
The proposed conversion will require unitholders’ approval at an October SGM, with trading to be suspended from the 4 October record date.
The trustee board of Vanguard AML Rupali Bank Balanced Fund has approved a proposal to voluntarily convert the closed-end mutual fund into an open-end scheme, potentially improving liquidity and providing unitholders with a more flexible exit option.
According to an official disclosure issued by the Investment Corporation of Bangladesh (ICB), the fund's trustee approved the conversion proposal submitted by its asset manager, Vanguard Asset Management Ltd (VAML), in line with the Bangladesh Securities and Exchange Commission (Mutual Fund) Rules, 2025.
The fund will seek unitholders' approval for the proposed conversion at a Special General Meeting (SGM) scheduled for 26 October 2026 at 11:00am at RAOWA Convention Hall in Mohakhali, Dhaka.
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Unitholders will vote at the meeting on whether to proceed with the conversion of the closed-end fund into an open-end scheme.
The trustee has set 4 October 2026 as the record date, on which trading of the fund's units on the stock exchanges will be suspended until further notice to determine the list of eligible voters.
The conversion initiative comes at a time when the fund has shown signs of a financial turnaround. After grappling with net losses since 2022, the fund reported a significant recovery in the first half of 2026.
For the January–June period, the earnings per unit (EPU) stood at Tk1.19, a sharp reversal from a loss of Tk0.57 in the same period last year. The recovery was particularly strong in the second quarter (April–June), which contributed Tk0.91 to the EPU.
Despite the earnings rebound, the fund's cash flow remains under pressure, with a negative net operating cash flow per unit of Tk0.68 for the first half of the year.
As of 30 June 2026, the Net Asset Value (NAV) per unit at market price was Tk9.57, while at cost price, it stood at Tk10.72. Listed on the Dhaka Stock Exchange in 2016, failing to declare any dividends since 2024.
Market observers believe the shift to an open-end structure will be a major relief for investors, as closed-end funds in Bangladesh have historically traded at steep discounts to their NAV. In the last trading session on 3 September, the fund's unit price closed 1.25% higher at Tk8.10 on the Dhaka bourse.
