RACE-managed assets are 100% safe, the asset manager ensures BSEC

Bangladesh RACE Asset Management, several beneficiary owner's (BO) accounts of which have recently been suspended by the stock market watchdog, has said the investors should not lose confidence on the company, as all assets managed by it are secure and safe.

The country's largest private asset management company made the call through a press statement in response to a recent order, under which Bangladesh Securities and Exchange Commission imposed the suspension on RACE for mismanagement of assets on June 24.

RACE assured the commission and all stakeholders that all listed and non-listed securities of mutual funds managed by the asset manager are securely held by the custodians with 97 percent of the assets under the supervision of respective custodians.

The remaining 3 percent assets are also managed under strict protocols to ensure their safety and integrity, the company said in the statement.

"All mutual fund assets are held in custody by custodians Investment Corporation of Bangladesh and BRAC Bank under the direct supervision of trustees ICB and Bangladesh General Insurance, which guarantees their security and makes misuse impossible," the statement read.

Listed shares, which constitute about 80 percent of mutual fund assets, are held in custodian's depository participant (DP) accounts as per trust deed and custodian agreements.

Various types of mutual fund accounts, including custodian DP accounts, custodian DP and brokerage trading omnibus accounts, brokerage trading (parent) accounts, brokerage trading (link) accounts, brokerage suspense accounts and brokerage fractional accounts serve distinct and valid purposes in the lawful management and settlement of mutual fund transactions, it said.

These accounts ensure that all mutual fund operations are conducted with utmost transparency and security, the company said.

"Evidence of the secure custody of these assets has been submitted to the commission," it said.

These reports demonstrate that ICB and BRAC Bank hold 97 percent of mutual fund assets securely.

Supporting documents verifying the security and integrity of the managed assets have been submitted to the regulator, affirming RACE's commitment to transparency and regulatory compliance, the company said in the statement.

RACE Management appreciates the investors understanding and patience as it ensures full compliance with regulatory requirements and continues to safeguard the interests of its unitholders, it said.