Two mutual funds that are listed on the stock market are being converted from term to perpetual funds. The SEML Lecture Equity Management Fund and Vanguard AML BD Finance Mutual Fund-One are the two funds.

The Dhaka Stock Exchange (DSE) reports that these two funds’ terms would end on December 23. The funds must be liquidated or changed into perpetual funds in accordance with the regulations after the term ends.

In the instance of the Vanguard Fund, Vanguard Asset Management Limited, the managing entity, contacted the fund’s trustee, Bangladesh General Insurance Company Limited (BGIC), on July 15 to start the required procedures. Earlier, on July 10, the board of trustees had given their approval for the conversion proposal.

Following this, on July 16, the board formally authorized the fund conversion. The asset management company will bear all costs associated with the conversion process. Furthermore, a meeting will be held to secure the consent of the unitholders.

On the other hand, Strategic Equity Management Limited, which oversees the SEML Lecture Fund, has also approached BGIC to initiate the necessary actions. On July 3, they agreed to take on the conversion expenses, and on July 16, the board of trustees endorsed their proposal. In this scenario as well, the ultimate decision will depend on the input from the unitholders.

The fundamental characteristics of a term fund are altered when it is converted to an open-ended fund, in accordance with directives issued by the Bangladesh Securities and Exchange Commission (BSEC) on July 8, 2015.

The trading of the two funds in question will end on October 22 as part of this procedure. On October 23, the trustee will assume control of the open-ended fund. In the event that the conversion plan is rejected by the unitholders, the asset management firm will still be in charge and the fund will trade normally.