Dhaka-based Green Delta Dragon, a joint-venture asset manager founded by Green Delta Insurance Company Ltd (“GDIC”), Dragon Capital Group (“Dragon Capital”) and Equinox Dhaka Ltd. (“Equinox”), has received approval from the Bangladesh Securities and Exchange Commission (“BSEC”) for the draft prospectus of its first open-ended mutual fund – the Green Delta Dragon Enhanced Blue Chip Growth Fund (“GDD EBCGF”).
The objective of GDD EBCGF is to outperform the benchmark DS30, which tracks the leading stocks listed on the Dhaka Stock Exchange, by focusing on select investments in market-leading Bangladesh-based companies, targeting capitalisations of Tk 8.5 bn (US$ 79mn) or more, and in IPO investments of potential future market leaders.
In accordance with the regulatory approval, the initial size of the new mutual fund will be Tk 500 mn (US$ 4.6mn). Green Delta Insurance and Dragon Capital, the sponsors of the fund, have jointly contributed Tk 50 mn (US$ 460k), and the remaining Tk 450 mn (US$ 4.1mn) will be open to onshore and offshore investors through the sale of mutual fund units
Shahbaj Talat, Managing Director & CEO of Green Delta Dragon said:
“We are delighted to receive official approval for our first fund. Bangladesh is one of the most exciting frontier markets in terms of its long-term economic growth potential, and we are confident that with the strength of our team and the GDD EBCGF’s investment strategy, we can capitalise on this exciting opportunity to deliver for investors.”Shahbaj Talat
Joseph Hoess, a Director at Dragon Capital and Chairman of Green Delta Dragon, commented:
“While it is a volatile time for global capital markets in general, like Vietnam, Bangladesh demonstrates strong demographic trends that will support its early achievement of ‘developing country’ status. Unlike Vietnam however, the growth of Bangladesh’s capital market to date has lagged its historically strong GDP results. This reality, the government’s support for economic progress and business in the private sector, the introduction of new investment products and services and an established common law legal system presents a unique opportunity to both local and foreign investors.”Joseph Hoess
“The strategy of GDD EBCGF is sound, and not complex. It focuses on liquid Blue-Chips and high-growth IPOs and benefits from the local knowledge of Green Delta Insurance and the proprietary investment analyses techniques, including ESG screening, of Dragon Capital.”
Bangladesh General Insurance Company is the trustee of the fund, and BRAC Bank the custodian
Green Delta Insurance Company is the largest general insurance company in Bangladesh, providing protection over US$ 35.7 bn of insured assets, while Dragon Capital is the largest and longest-established asset management group in Vietnam with assets under management (AUM) in the country of over US$ 5 bn. Equinox is an emerging market investment advisory firm.
Green Delta Dragon was awarded Asset Management License from the Bangladesh Securities and Exchange Commission (BSEC) on 24 November 2021.