SEML IBBL Shariah Fund to hold SGM on 27 Oct for open-end conversion
Unit holders will vote on whether to convert the fund from its existing closed-end structure into an open-end fund or proceed with redemption, as applicable.
SEML IBBL Shariah Fund, a closed-end mutual fund managed by Strategic Equity Management Limited (SEML), will hold a Special General Meeting (SGM) on 27 October to seek unit holders' approval for converting the fund into an open-end fund or, where applicable, redeeming the fund.
According to price-sensitive information on 25 August, the meeting will begin at 11am at RAOWA Convention Hall's Anchor Hall-02 on VIP Road in Mohakhali, Dhaka.
The meeting has been called based on an order issued by the Bangladesh Securities and Exchange Commission on 7 May 2026 and SEML's voluntary proposal to convert the fund.
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Unit holders will vote on whether to convert the fund from its existing closed-end structure into an open-end fund or proceed with redemption, as applicable.
The record date for determining eligible unit holders has been set for 6 October. Trading in the fund's units on the stock exchanges will be suspended from that date and will remain suspended until further notice. The proposed effective date of the arrangement is 8 October.
Under BSEC's amended rules, the tenure of a closed-end mutual fund cannot be extended. At the end of its prescribed tenure, a fund must either convert into an open-end fund with unit holders' approval or be liquidated to return investors' money. Such a decision requires at least 75% approval based on unit ownership.
SEML IBBL Shariah Fund was launched with an initial size of Tk100 crore. Islami Bank Bangladesh is the sponsor, while Investment Corporation of Bangladesh acts as trustee and custodian. As of 25 August, the fund's NAV stood at Tk11.71 per unit on a cost basis and Tk9.98 based on market value.
The proposed conversion is part of BSEC's broader initiative to restructure Bangladesh's closed-end mutual fund sector. Around 36 closed-end mutual funds are currently listed on the stock exchanges, of which 22 were trading at discounts of 25% or more to their cost-based NAV.
Under BSEC's rules, if a closed-end fund's six-month average market price remains at least 25% below its cost-based NAV, the trustee must call a unit holders' meeting to determine the fund's future.
