Vanguard AML Rupali Bank Balanced Fund

By the Editorial Team · Wednesday, October 28, 2026

Vanguard AML Rupali Bank Balanced Fund will stop trading after November 9 as it moves into liquidation following its 10-year term, with unitholder approval meeting regulatory requirements. This liquidation highlights ongoing challenges in Bangladesh’s closed-end mutual fund sector, where market prices often trade below NAV, potentially allowing investors to recover value through the winding-up process.

Vanguard AML Rupali Bank Balanced Fund is set to cease trading on stock exchanges after November 9, as the fund moves toward liquidation and redemption following the completion of its 10-year tenure. The decision comes amid regulatory provisions requiring approval from at least 75 percent of unitholders based on ownership share for conversion or closure of such funds.

The fund, which debuted on the stock exchanges in January 2016 with an initial size of Tk 1.50 billion, reported a net asset value (NAV) of Tk 9.34 per unit as of October 1. However, its units were trading at a discount, around Tk 8.40 per share on the latest trading day, approximately 10 percent below the NAV. Market participants note that the winding-up process will allow investors to recover investments aligned with the NAV, potentially closing the gap between market price and underlying asset value.

As of the latest available data, Vanguard AML Rupali Bank Balanced Fund held total net assets valued at Tk 1.48 billion at current market prices, or Tk 1.59 billion at cost value after liabilities were considered. Investors who subscribed at the time of the fund’s inception and retained their units until redemption may see relatively modest returns. Conversely, those who acquired units on the secondary market at discounted prices could realize higher gains depending on the final redemption payout, which will be influenced by the valuation applied, outstanding liabilities, expenses, and the procedures of the liquidation process.

The situation points to a broader issue within Bangladesh’s closed-end mutual fund sector, where many funds have historically traded below their NAV, limiting investors’ ability to realize the full value of their holdings through exchange transactions. The liquidation of Vanguard AML Rupali Bank Balanced Fund follows a similar pattern, marking the third fund to enter the wind-up phase upon maturity in the past decade. Earlier this year, Asian Tiger Sandhani Life Growth Fund and Vanguard AML BD Finance Mutual Fund One were also liquidated.

Currently, 35 closed-end mutual funds remain listed on the country’s stock exchanges, continuing to navigate challenges related to market pricing and liquidity. The liquidation of Vanguard AML Rupali Bank Balanced Fund may provide some precedent for addressing NAV discounts that affect investor returns in this segment.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.