What does LR Global Bangladesh Asset Management Company Ltd. do?
LR Global Bangladesh Asset Management Company Ltd. provides innovative equity, money market, and debt based investment products for our investors. It also offers both investment and corporate advisory services which includes asset allocation, due diligence, structuring of various complex transactions including securitization and private equity investments, advising and assisting public and private companies based in Bangladesh in finding private financing, both on a debt and equity basis and in mergers and acquisitions.
What is the legal structure of LR Global Bangladesh Asset Management Company Ltd.?
The company is a private limited company incorporated on January 15, 2008 and awarded with the asset management license by Bangladesh Securities and Exchange Commission on June 08, 2008.
Who regulates Asset Management Companies?
Asset Management Companies are regulated by Securities and Exchange Commission.
What is a Mutual Fund?
An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund’s capital and attempt to produce capital gains and income for the fund’s investors. A mutual fund’s portfolio is structured and maintained to match the investment objectives stated in its prospectus.
What are the different types Mutual Fund available?
There are two types of mutual fund as follows:
Open-Ended Fund- An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices, which are declared on a daily basis. The key feature of open-ended schemes is liquidity.
Close-Ended Fund- A close-ended fund or scheme has a stipulated maturity period e.g. 5-10 years. The fund is open for subscription only during a specified period at the time of launch of the scheme. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. In most cases regulations stipulate that at least one of the two exit routes is provided to the investor i.e. either repurchase facility or through listing on stock exchanges. These mutual funds schemes disclose NAV generally on weekly basis.
What do you mean by Net Asset Value (NAV)?
The net asset value (NAV) is usually used in mutual and unit trust fund describing the value of funds of assets and less the value of liabilities. It is also referred as net book value or book value and the term may also be used in many places in different meanings. Net asset value mostly used in mutual and unit trust fund to signify total value of the portfolio of the fund less its liabilities.
What is price sensitive information?
Price Sensitive Information is the information that, if made public, would be likely to have a significant effect on the price of a company’s securities. Such information must, in connection with a listed company, be released to the market in a fashion that is fair to all investors. Any person who uses price sensitive information to make a profit either for themselves or a third party in the shares of a company is in breach of insider trading laws.
What are the performance indicators of a portfolio?
The performance indicators of a portfolio are as follows:
- Annualized Return: The average amount of money earned by an investment each year over a given time period. An annualized total return provides only a snapshot of an investment’s performance and does not give investors any indication of its volatility. Annualized total return merely provides a geometric average, rather than an arithmetic average.
- Alpha: A measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a mutual fund and compares its risk-adjusted performance to a benchmark index. The excess return of the fund relative to the return of the benchmark index is a fund’s alpha.
- Beta: Beta is a key component for the capital asset pricing model (CAPM), which is used to calculate cost of equity. Beta is a measure of a stock’s volatility in relation to the market. By definition, the market has a beta of 1.0, and individual stocks are ranked according to how much they deviate from the market. A stock that swings more than the market over time has a beta above 1.0. If a stock moves less than the market, the stock’s beta is less than 1.0. High-beta stocks are supposed to be riskier but provide a potential for higher returns; low-beta stocks pose less risk but also lower returns.
- Sharpe Ratio: A ratio developed by Nobel laureate William F. Sharpe to measure risk-adjusted performance. The Sharpe ratio is calculated by subtracting the risk-free rate – such as that of the 10-year U.S. Treasury bond – from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns. The Sharpe ratio formula is: