UCB Asset Management signs trust deed for its Tk35cr Taqwa Growth Fund
The insurer will act as the trustee of the fund, while UCB Asset Management will be the sponsor and asset manager
UCB Asset Management Ltd and Sandhani Life Insurance Company Ltd have signed the trust deed of UCB Taqwa Growth Fund – the second open-end mutual fund to be launched by the new generation asset manager.
The insurer will act as the trustee of the fund, while UCB Asset Management will be the sponsor and asset manager.
The initial size of the fund will be Tk35 crore, UCB Asset Management said in a press statement.
Keep updated, follow The Business Standard's Google news channel
The Bangladesh Securities and Exchange Commission (BSEC) has recently approved the draft trust deed of the UCB Taqwa Growth Fund.
"The objective of launching this new fund is to cater to the needs of investors who seek Shariah-compliant investment opportunities," the asset manager added.
United Commercial Bank Ltd, one of the largest first-generation private banks, has recently launched its Islamic banking window "UCB Taqwa" to offer best-in-class banking services with uncompromising Shariah adherence.
UCB Taqwa Growth Fund is being launched to follow the footsteps of the parent to offer a Shariah-based investment vehicle.
As the name suggests, the fund will focus on earning superior risk-adjusted returns by investing in high-quality growth names.
The asset manager expressed hope to go for the initial public offer (IPO) of UCB Taqwa Growth Fund by the first quarter of 2022.
Open-end mutual funds have no predetermined life and units of the funds are not tradable on bourses.
Investors instead buy the fund units from the asset managers concerned or their authorised agents, while the asset managers buy back the surrendered units any time at the current value of the underlying assets of the fund units.
Md Mizanur Rahman, company secretary at Sandhani Life Insurance, and SM Rashedul Hasan, managing director and chief executive officer (CEO) at UCB Asset Management, signed the trust deed on behalf of their respective organisations on Wednesday.
ATM Tahmiduzzaman FCS, deputy managing director and company secretary at the United Commercial Bank, Mohammed Rahmat Pasha, managing director and CEO of UCB Stock Brokerage Ltd, and Tanzim Alamgir, managing director and CEO of UCB Investment Ltd were also present at the event at the asset manager's office in the capital.
