Function of Asset Management Company in Bangladesh
Function of Asset Management Company
An Asset Management Company (AMC) is a legal entity that conducts professional activity of managing, along with related daily administrative activities of collective investment institutions/funds based on the license issued by Bangladesh Securities and Exchange Commission.
An Asset Management Company is authorized to
1. Mutual Fund Operation: Act as issue and portfolio manager of the mutual fund.
Mutual funds, either Open End or Closed End, are fund portfolios pooled together small or large investments from individuals and institutions that are professionally and actively invested in the securities market and dynamically managed by AMC
The primary objective of mutual funds is to diversify the security specific risks away and thus minimize the portfolio risk to the lowest possible level. However, efficient and effective management of mutual funds can also pay off better return than individual, unmanaged, static, and passive investment strategies.
Related Parties:
a) Sponsor
b) Trustee
c) Custodian
d) Asset Manager Benefits as of Mutual Fund:
All income from Mutual Fund operation is tax exempted which allows fund manager to declare higher dividend.
The deductible AIT from dividend income of Mutual Fund is 20.00%, which is treated as final settlement of tax while the corporate tax of banks and non-bank financial institutions is 42.50%.
Since the proposed Fund is named in favor of Sponsor’s name, it will boost up Sponsor’s corporate image through out of Fund’s life.
Product innovation/ diversification.
Diversification of mode of earnings by diversified investment.
Enhancement of market share by the sponsor through branding of Mutual Fund.
Attractive returns on investment
Asset value of the Sponsor may reasonably appreciate
Competitive advantage over the competitors
2. Corporate Portfolio Management:Act as portfolio manager of institutional investor.
An Asset Management company can act as Portfolio Manager and will
An Asset Management Company (AMC) is a legal entity that conducts professional activity of managing, along with related daily administrative activities of collective investment institutions/funds based on the license issued by Bangladesh Securities and Exchange Commission.
An Asset Management Company is authorized to
1. Mutual Fund Operation: Act as issue and portfolio manager of the mutual fund.
Mutual funds, either Open End or Closed End, are fund portfolios pooled together small or large investments from individuals and institutions that are professionally and actively invested in the securities market and dynamically managed by AMC
The primary objective of mutual funds is to diversify the security specific risks away and thus minimize the portfolio risk to the lowest possible level. However, efficient and effective management of mutual funds can also pay off better return than individual, unmanaged, static, and passive investment strategies.
Related Parties:
a) Sponsor
b) Trustee
c) Custodian
d) Asset Manager Benefits as of Mutual Fund:
All income from Mutual Fund operation is tax exempted which allows fund manager to declare higher dividend.
The deductible AIT from dividend income of Mutual Fund is 20.00%, which is treated as final settlement of tax while the corporate tax of banks and non-bank financial institutions is 42.50%.
Since the proposed Fund is named in favor of Sponsor’s name, it will boost up Sponsor’s corporate image through out of Fund’s life.
Product innovation/ diversification.
Diversification of mode of earnings by diversified investment.
Enhancement of market share by the sponsor through branding of Mutual Fund.
Attractive returns on investment
Asset value of the Sponsor may reasonably appreciate
Competitive advantage over the competitors
2. Corporate Portfolio Management:Act as portfolio manager of institutional investor.
An Asset Management company can act as Portfolio Manager and will