Blue wealth assets- a fixed income mutual fund in Bangladesh

Abstract

RSA Capital was founded in 2006 by the current Chairman and CEO Sameer Ahmed. The company started its journey through a landmark achievement- the world’s first microcredit securitization for BRAC. The transaction itself was worth around 180 million USD and the company along with the transaction had received widespread acclaim for the milestone achievement. The company carries out a myriad of financial operations such as providing corporate advisory, mergers and acquisitions, raising capital (Tier-1 and Tier-2), releasing bonds as well as asset and fund management. With highly trained professionals at the helm of RSA Capital, the company has completed different projects worth millions of dollars. Ostensibly, huge research opportunities can be found in the firm’s bulky archives of successful projects. However, this report is aimed at analyzing the works of a particular asset management firm- Blue Wealth Assets a- that RSA capital has acquired and the management practices that comes along with the acquired AMC. The main topic of interest will be an open ended fixed mutual fund that RSA Capital has been structuring and will be initiated pending approval from the government. The fund, seemingly one of its kind highlights the need for such a fund in Bangladesh where most investment is done in equity-stocks to be precise. Market Capitalization of Bonds as compared to Equity in Bangladesh is low when weighed against the neighboring countries. This report aims to study the fund, its investment strategies, avenues of returns and management policies. Moreover, this report will also attempt to analyze the feasibility of such a fund, and what it means in this equity majority market of Bangladesh.