RACE Asset Management's rejoinder and our reply

RACE Asset Management PCL has issued a rejoinder to statements concerning the company made during an interview with Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan, conducted by Jebun Nesa Alo of The Business Standard and aired on 10 July 2026.

The rejoinder objected to a question from Jebun Nesa Alo, in which she asked, "The mutual fund industry seems to have ended before it even truly began. The industry was destroyed before it could become popular among ordinary people. If we look at it, the two largest fund managers – RACE and LR Global – together managed funds worth nearly Tk5,000 crore. The two biggest funds have virtually disappeared. Investors are suffering, and fund managers are on the run. So how can this industry be brought back to a sizeable and sustainable position? Or how can the mutual fund industry actually be recovered?"

The rejoinder said, "The interviewer from TBS posed leading questions that were inherently misleading and unsubstantiated. The statement by the TBS interviewer is also irresponsible as it (1) can give rise to investor panic-- over 2 Lac unitholders hold RACE funds; (2) create an opportunity by vested parties to engage in manipulation of listed mutual fund units; (3) aids and abets a long campaign by vested quarters to wrest control of the management of RACE funds by sullying its corporate reputation and the reputation of its Founder; (4) causes irreparable harm to the employees of RACE and vendors whose livelihood depend on these funds."

RACE said, "100% of fund assets are intact. Fund assets are held by third-party Custodians, not RACE. That assets of RACE managed Mutual Funds are NOT held by RACE - they are in the custody ("hefazat") of professional Custodians. In the case of RACE funds assets are in the safe keep of BRAC Bank and Investment Corporation of Bangladesh.

"These Custodians have repeatedly certified 100% of RACE fund assets are in their safe-keep: That after every quarter and every fiscal year end, the Custodians of RACE managed funds-both ICB and Brac Bank-have certified and reported by independent audit that RACE managed funds have NO shortfalls, meaning 100% of assets are intact. RACE managed funds have been targets of forced takeover by vested quarters."

The rejoinder said, "In a high-level criminal conspiracy led by ex-Chairman of BSEC Shibli Rubayat and his cronies, there was a well-planned and powerful attempt to wrest control of RACE managed mutual funds through trumped up allegations, malafide enquiries devoid of due process and systemic and repeated illegal leakage of ongoing confidential enquiries to media."

"On behalf of Bangladesh RACE Management PCL, we categorically confirm that 100% of the assets of the RACE-managed mutual funds are held in safe custody," it added.

The rejoinder continued, "During the tenures of the commissions chaired by Mr. Shibli Rubayat-Ul-Islam and Mr. Rashed Maqsood, RACE's operations were subjected to various regulatory restrictions. RACE has consistently maintained that several regulatory actions taken against the company during those administrations were arbitrary and unjustified. The company has also asserted that it was subjected to unfair treatment by certain officials of the former BSEC leadership. Allegations concerning misconduct by some former BSEC officials have subsequently been the subject of public reporting and investigations by the Anti-Corruption Commission.

"These matters are entirely separate from, and do not substantiate, the unfounded allegations of embezzlement made against RACE Management PCL during the broadcast. RACE Management PCL therefore rejects any attempt to attribute investor losses to the company rather maintains that the regulatory actions and declining market condition during the relevant period materially contributed to the losses experienced by investors."

Our reply

The question about issues related to RACE Management PCL asked during the video interview with BSEC Chairman Masud Khan was based on reports from various government agencies, including CID, BSEC, and ACC, as well as actions taken by the authorities.