The Bangladesh Securities and Exchange Commission on Tuesday approved the draft prospectuses of two open-end mutual funds sponsored by Midland Bank — the Midland Bank Growth Fund and the Midland Bank Balanced Fund.
Both funds will have an initial target size of Tk25 crore each. In both cases, Midland Bank will invest Tk2.5 crore as sponsor contribution, while the remaining Tk22.5 crore will be offered to general investors through public subscription.
The face value of units for both funds has been fixed at Tk10.
Midland Bank Asset Management Company will act as the asset manager for both funds. Sandhani Life Insurance Company has been appointed as trustee, while Commercial Bank of Ceylon will serve as custodian.
A growth fund is a mutual fund that primarily invests in shares of companies expected to grow faster than the overall market, with the objective of achieving long-term capital appreciation.
A balanced fund, on the other hand, invests in a combination of equities and fixed-income instruments such as bonds and treasury securities, aiming to provide both capital growth and income while reducing risk through diversification.
“We reiterate our unwavering commitment to investment discipline and value-based investment principles, which will remain the cornerstone of our strategy,” said Midland Bank Asset Management Chief Operating Officer Rashedul Hasan Yasin.
“We will exercise our fiduciary duty with the utmost diligence to protect and grow investors’ capital,” he said, adding that the mutual funds are scheduled to be launched next month.
