Shanta Asset Management introduces Shanta Fixed Income Fund!

In line with theprogression and expansion strategy, Shanta Asset Management Limited (SAML) has taken an initiative to lunch a new mutual fund concentrating mainly on fixed income securities namely “Shanta Fixed Income Fund”. ATrust Deed Signing Ceremony was held at the head office ofBangladesh General Insurance Company Ltd (BGIC Ltd) on 18th March, 2021.

SAML isboth the Sponsor and the Asset Manager of the Fund whileBGIC will act as the Trusteeof the Fund. The trust deed signing ceremony was led by Mr. Mohammad Emran Hasan, CEO of SAML, andMr. Ahmed Saifuddin Chowdhury,Managing Director & CEO ofBangladesh General Insurance Company Ltd.(BGIC).In this signing ceremony, from SAML, Mr Sazzad Mahmud, Head of Accounts and Operations, Mr H M Jahid Hassan, CFA,Fund Manager and Ms. Aparajita Sarkar, Deputy Manager, Marketing and Sales, while from BGIC, Mr. Saifuddin Ahmed, General Manager & Company Secretary, Mr. DebabrataBanik, Senior Deputy General Manager (Structural Investment), Mr. Muhammad Irteda, Assistant General Manager(Structural Investment)were also present.

The initial target of this fund will be BDT 100 million and the sponsor will provide BDT 10 million. As an open-end mutual fund, the fund size can be increased over the time.Shanta Fixed Income Fund (SFIF)is mandated to maintain the investment in government securities within the range of 40.0% - 60.0% of its asset while the fund can invest maximum 50.0% of its assets in listed securities. Also, SFIF is allowed to allocate maximum 20.0% of its asset to non-listed securities holding “Very Strong” rating awarded by licensed credit rating agencies.

On this special event, Mohammad Emran Hassan, CEO of Shanta Asset Management Limited, told, “Focusing on investors’ demand for the investment diversification tool, we are going to launch a mutual fund namely Shanta Fixed Income Fund which will primarily focus on fixed income securities. This actively managed fixed income funds would offer our esteemed investors an opportunity to generate a steady return while reducing the investment risk considerably.”

Under the law, the company will submit the Trust Deed to the Bangladesh Securities and Exchange Commission (BSEC). After the approval of the regulatory body, the fund will be launched as per the laws.