The latest scam of Tk 1.57 billion by an asset manager came as a fresh blow to the mutual fund sector as a sense of insecurity is feared to prompt open-end unit holders to mount a liquidation pressure.
Fund manager LankaBangla Asset Management has already communicated its concerns to the Bangladesh Securities and Exchange Commission (BSEC) after the fund embezzlement made headlines, sources said.
“Scams definitely cause concerns in any industry,” said Masum Ali, chief executive officer (CEO) of LankaBangla. But he refused to say if the sector was facing any backlash.
A top executive of Universal Financial Solutions (UFS), an asset management company, has recently fled the country with the money from four open-end MF units.
The funds managed by the UFS are UFS Popular Life Unit Fund, UFS-IBBL Shariah Unit Fund, UFS-Bank Asia Unit Fund, and UFS-Padma Life Islamic Unit Fund.
“This scam is a massive blow for the MF industry because the level of financial literacy of majority investors is very shallow,” said Shahidul Islam, chief executive officer at VIPB Asset Management.
Unit holders should be able to distinguish fund managers for the safety of their investments, he added.
Apart from the UFS, the securities regulator is looking into some alleged mismatches in one or two more funds managed by Alliance Capital Asset Management.
An official of the asset manager said they had always duly…
