Aims1st, Grameen One mutual funds to continue

High Court orders

The High Court has declared the decision of the Bangladesh Securities and Exchange Commission (BSEC) to dissolve the AIMS First Guaranteed and Grameen One closed-end mutual funds as ‘illegal’, report agencies.
The bench of Justice Tariq ul Hakim and Justice Farid Ahmed Shibli issued the order yesterday following final hearing on a petition. According to the HC order, the decision of the BSEC to fix 10-year tenure for the closed-end mutual funds and shut them down later would not be applicable to AIMS First and Grameen One.
The case details show that the BSEC had, in an executive decision on January 24, 2010, fixed a 10-year term for closed-end mutual funds and ordered the closure of those that crossed the timeframe.
As a result, a BSEC meeting on Junuary 29 this year decided to close AIMS First and Grameen One mutual funds after December 31.
Earlier in 2014, AIMS of Bangladesh, the asset manager of the MFs, sought BSEC permission to extend tenure of the funds by 10 years which was rejected by the commission.
On November 19, the unit-holders who own majority number of units of the AIMS First Guaranteed Mutual Fund (MF) and Grameen MF One exercised their votes against the proposals of converting these closed-end MFs into open-end ones, according to DSE news.
They exercised their votes through separate polls held at the unit-holders’ meetings arranged by respective trustees to receive unit holders’ consent in favour of conversion proposal of the MFs.
Both the AIMS First Guaranteed Mutual Fund (MF) and Grameen MF One are managed by the AIMS of Bangladesh, the first private Asset Management Company (AMC).  
The members of the Trustee of the Grameen MF One said they received two types of results in the poll arranged for unit holders on November 19.
According to information of the poll, nine per cent of the unit holders of AIMS First Guaranteed MF exercised their votes in favour of converting the closed-end MF into open-end one.
Total number the units owned by those unit holders are 3.7 million.
On the other hand, 91 per cent of the unit holders exercised their votes against the conversion of the AIMS 1st Guaranteed MF. Those 91 per cent
unit holders own 38.3 million units of the fund.
AIMS First Guaranteed Mutual Fund was formed in 2000 and Grameen One: First Scheme of Grameen Mutual Fund One was formed in 2005.

 

Aims1st, Grameen One mutual funds to continue

High Court orders

The High Court has declared the decision of the Bangladesh Securities and Exchange Commission (BSEC) to dissolve the AIMS First Guaranteed and Grameen One closed-end mutual funds as illegal, report agencies. The bench of Justice Tariq ul Hakim and Justice Farid Ahmed Shibli issued the order yesterday following final hearing on a petition. According to the HC order, the decision of the BSEC to fix 10-year tenure for the closed-end mutual funds and shut them down later would not be applicable to AIMS First and Grameen One. The case details show that the BSEC had, in an executive decision on January 24, 2010, fixed a 10-year term for closed-end mutual funds and ordered the closure of those that crossed the timeframe. As a result, a BSEC meeting on Junuary 29 this year decided to close AIMS First and Grameen One mutual funds after December 31. Earlier in 2014, AIMS of Bangladesh, the asset manager of the MFs, sought BSEC permission to extend tenure of the funds by 10 years which was rejected by the commission. On November 19, the unit-holders who own majority number of units of the AIMS First Guaranteed Mutual Fund (MF) and Grameen MF One exercised their votes against the proposals of converting these closed-end MFs into open-end ones, according to DSE news. They exercised their votes through separate polls held at the unit-holders meetings arranged by respective trustees to receive unit holders consent in favour of conversion proposal of the MFs. Both the AIMS First Guaranteed Mutual Fund (MF) and Grameen MF One are managed by the AIMS of Bangladesh, the first private Asset Management Company (AMC). The members of the Trustee of the Grameen MF One said they received two types of results in the poll arranged for unit holders on November 19. According to information of the poll, nine per cent of the unit holders of AIMS First Guaranteed MF exercised their votes in favour of converting the closed-end MF into open-end one. Total number the units owned by those unit holders are 3.7 million. On the other hand, 91 per cent of the unit holders exercised their votes against the conversion of the AIMS 1st Guaranteed MF. Those 91 per cent unit holders own 38.3 million units of the fund. AIMS First Guaranteed Mutual Fund was formed in 2000 and Grameen One: First Scheme of Grameen Mutual Fund One was formed in 2005.