CAPM BDBL Mutual Fund-01 unitholders approve conversion to open-end fund

Unitholders of CAPM BDBL Mutual Fund-01 have overwhelmingly approved a proposal to convert the closed-end mutual fund into an open-end fund, according to a disclosure by its trustee.

At a Special General Meeting (SGM) held at RAOWA Convention Hall in Mohakhali DOHS today (7 October), 99.19% of unitholders, based on units held, voted in favour of the conversion. 

The conversion now requires approval from the Bangladesh Securities and Exchange Commission (BSEC).

The move follows regulatory changes under the BSEC Mutual Fund Rules, 2025. In June, the securities regulator instructed trustees to comply with provisions requiring eligible closed-end mutual funds to either convert into open-end schemes or proceed with redemption.

Against this backdrop, the trustee called the SGM yesterday, where unitholders were given the option to approve the conversion or proceed with redemption.

The proposal was approved under Rule 63 of the BSEC (Mutual Fund) Rules, 2025, the trustee said.

If approved by the regulator, the fund will shift from a closed-end structure, where units are traded on the stock exchange, to an open-end structure, where investors generally subscribe to or redeem units based on the applicable net asset value (NAV) and fund terms.

The conversion could therefore change how investors buy and sell units of the fund. The effective date and subscription and redemption arrangements will depend on the terms approved by the BSEC.

CAPM BDBL Mutual Fund-01 is managed by CAPM Company Limited and sponsored by Bangladesh Development Bank Limited. Its units are currently traded on the Dhaka Stock Exchange.

The trustee will now complete the regulatory process, with the conversion taking effect only after BSEC approval and compliance with any conditions imposed by the regulator.