RACE Claims 100pc of Assets Secure and Safe

Bangladesh RACE Management PCL in response to the recent order by Bangladesh Securities and Exchange Commission, assured the commission and all stakeholders that all listed and non-listed securities of mutual funds are securely held by the custodians, with 97 percent of the assets under the supervision of respective Custodians. The remaining assets are also managed under strict protocols to ensure their safety and integrity.

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

All mutual fund assets are held in custody by custodians ICB and BRAC Bank under the direct supervision of trustees ICB and BGIC, which guarantees their security and makes misuse impossible. Listed shares, which constitute about 80 percent of mutual fund assets, are held in Custodian DP Accounts as per Trust Deed and Custodian Agreements.

As evidence of the secure custody of these assets, DP A6 reports for closed-end mutual funds as of May 31, 2024, are being submitted to BSEC. These reports, along with Mutual Fund reports on listed and non-listed shares, demonstrate such as ICB and BRAC Bank hold 97 percent of mutual fund assets securely, including listed shares valued at Tk 2,496.54 Crore (about 80 percent of fund assets) and non-listed securities (about 17 percent of fund assets).

Race senior employees claimed that a certain vested quarter was using misunderstandings and information gaps to spread false and malicious rumors. "Such targeted misinformation is hurting our hard-earned reputation over last 15 years and also damaging confidence in the mutual fund industry. That is why we are speaking out". 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.

During the last five years (2018 to 2023) RACE paid Tk 683.43 crore to unitholders as cash dividends for all Mutual Funds. RACE Management PCL appreciates the investors' understanding and patience as it ensures full compliance with regulatory requirements and continues to safeguard the interests of its unitholders.