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03 May 2011 11:12:37 PM Tuesday BdST
Investment strategy finalised
Bangladesh Fund to hit market Wednesday/Thursday
Staff Correspondent
banglanews24.com
DHAKA: The Tk 5,000 crore ‘Bangladesh Fund’ designed to prop up the stock market from a recurrent downslide is likely to penetrate the market within one or two trading days.
“The fund begins entering into the stock market from Wednesday or Thursday as the strategy for investing the fund was finalized,” said M Fayequzzaman, Managing Director of the Investment Corporation of Bangladesh (ICB), Tuesday.
According to the strategy, the fund would be invested in shares with strong fundamentals and PE (Price Earning) ratio under 20, he said.
After receiving the certified copy of the registration from the office of sub-registrar Tuesday, the copy along with a fee worth Tk 10 crore and necessary papers was sent to the Securities and Exchange Commission (SEC), said Fayequzzaman.
Although funds from the Fund would be invested in the market as per Mutual Fund regulations, a strategic policy would also be followed as the Fund is huge of its kind, he added.
Work for investing Tk 1500 crore from the Fund will begin in the first phase, sources said.
Earlier on April 28, the ‘Bangladesh Fund’, meant for buttressing the falling stock market, was registered by the Investment Corporation of Bangladesh (ICB) along with chiefs of other sponsor institutions.
ICB Asset Management Company Ltd is the manager of the fund, while ICB Capital Management Company Ltd is the custodian and Trustee.
On April 18, the Securities and Exchange Commission endorsed the fund meant for spurring the buying and selling of shares as part of bailout measures for stabilizing the share market, reeling from the worst-ever shocks.
Of the funds, Tk 1500 crore would be invested in the capital market through IPO (Initial Public Offering) in the first phase. With Tk 100 face value the market lot of the fund would be 1000 in unit, he added.
The state-run investment outfit and seven other state-owned financial institutions on March 6 announced the decision to create the syndicated fund.
The seven other SoEs are Sonali Bank, Janata Bank, Agrani Bank, Rupali Bank, Bangladesh Development Bank, Sadharan Bima Corporation and Jibon Bima Corporation.
BDST: 2256 HRS, May 03, 2011
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