Frequently Asked Questions

Portfolio Management Services

Portfolio Management Services (PMS), a Portfolio Manager service, is an investment portfolio consisting of stocks, fixed income, debt, cash, and other individual securities managed by a professional money manager and tailored to meet specific needs investment objectives. It aims to cater to the investment needs of individuals or entities with high net worth value by providing them with investment solutions. One has the flexibility to customize your portfolio to meet your specific needs and objectives.

In discretionary portfolio management service, the Portfolio Manager individually and independently manages the funds and securities of each client in accordance with the needs of the client. Under the non-discretionary portfolio management service, the Portfolio Manager manages the funds in accordance with the directions of the client.

The portfolio fee is fixed at 1.5% of the capital invested, and if the investor gets annual profit of 15% or above on the amount invested, then the investor needs to pay 50% of the gained profit above 15% to the PMS.

The investment solutions provided by PMS cater to a niche segment of clients. The clients can be individuals or institutions with a high net worth. The offerings are usually ideal for investors who are:

Looking to invest in asset classes like equity, fixed income, etc.

Desire personalized investment solutions

Desire long-term wealth creation

Appreciate a high level of service

The investment solutions are for a certain segment. Generally, individuals who have a high net worth might be customers. Investors who want to invest in asset classes including stock, fixed income, structured products, etc., who want individualized investment solutions, build long-term wealth, and value a high level of service may find the offers appealing. It offers greater flexibility with an investor’s money and higher returns too. Advantages are:

  • Personalized attention
  • Portfolio Managers take buy / sell decisions on behalf of a client
  • Portfolio Managers regularly interact with clients to update them on portfolio strategy, performance, and market outlook

Yes. All investments have some risk, including the potential for the original amount invested to be eroded, which varies based on the asset chosen.

The tax liability of a PMS investor would remain the same as if the investor is accessing the capital market directly. However, the investor should consult his / her tax advisor for the same. The Portfolio Manager ideally provides audited statement of accounts at the end of the financial year to aid the investor in assessing his / her tax liabilities.

The following investors are eligible to invest through PMS:

  • Resident Individuals
  • Corporates (Private)
  • Partnership Firms or any other eligible investor

The client may withdraw partial amounts from his portfolio, in accordance with the terms of the agreement between the client and the Portfolio Manager. However, the value of investment in the portfolio after such withdrawal shall not be less than the applicable minimum investment amount.

The Portfolio Manager shall furnish periodically a report to the client, as per the agreement, but not exceeding a period of three months and such report shall contain the following details, namely: –

(a) the composition and the value of the portfolio, description of securities and goods, number of securities, value of each security held in the portfolio, units of goods, value of goods, cash balance and aggregate value of the portfolio as on the date of report;

(b) transactions undertaken during the period of report including date of transaction and details of purchases and sales;

(c) beneficial interest received during that period in the form of interest, dividend, bonus shares, rights shares, etc;

(d) expenses incurred in managing the portfolio of the client;

(e) details of commission paid to distributor(s) for the particular client.

You will receive a quarterly update on your PMS account Performance.

The Portfolio Manager provides to the client the Disclosure Document prior to entering into an agreement with the client. The Disclosure Document contains the quantum and manner of payment of fees payable by the client for each activity, portfolio risks, complete disclosures in respect of transactions with related parties, the performance of the Portfolio Manager and the financial performance of the portfolio manager for the immediately preceding three years.

The services of a Portfolio Manager are governed by the agreement between the portfolio manager and the investor. The agreement should cover the minimum details as specified in the BSEC Portfolio Manager Regulations. However, additional requirements can be specified by the Portfolio Manager in the agreement with the client. Hence, an investor is advised to read the agreement carefully before signing it.

No, we do not guarantee or indicate any returns on the portfolios managed by us. It has to be distinctly understood that investing in equities is a risky proposition and there exists a risk to the principal amount invested. Further, BSEC guidelines prohibits the portfolio manager from guaranteeing or indicating a return, either directly or implicitly.

Non-discretionary accounts are of two types:

-Non-margin (cash) account

-Margin account,

With a non-margin (cash) account, portfolio clients can not avail loan facility to purchase shares.

With a margin account, portfolio clients may easily avail loan facility in the portfolio account.

a) Three copies of passport size photo of account holder
b) Copy of NID of account holder
c) Copy of TIN certificate
d) Copy of cheque leaf
e) Two copies of passport size photo of the nominee
f) Copy of NID of nominee

Documentation fee – Tk. 500/- (Once at the time of account open)

CDBL charge – Tk. 450/- (annually)

Brokerage commission Tk. 0.40% (volume of each trading)

Additional charges for margin portfolio:

-Portfolio management fee 0.50% (market value of portfolio)

-Interest on loan 16% on the outstanding / loan balance

We have an Order Management System (OMS) through our trading platform i.e TradeXpress. This is our online trading platform where clients can trade shares live at their own computer or mobile devices.   

Moreover, clients may trade shares with our traders over telephone and may be physically present in the trading booth to conduct the trade.

We have excess in the both stock exchanges DSE and CSE, so our clients can trade shares in both the stock exchanges DSE and CSE.

We send latest portfolio report every day and transaction statement send quarterly by e-mail. If needed, client may collect hard copy of portfolio, ledger and other documents from our premises during office time.

The tax liability of a PMS investor would remain the same as if the investor is accessing the capital market directly. However, the investor should consult his / her tax advisor for the same. The Portfolio Manager ideally provides audited statement of accounts at the end of the financial year to aid the investor in assessing his / her tax liabilities.

Upon receiving the withdrawal request from our clients (with request by withdrawal form or e-mail), we remit fund directly to the clients’ bank account directly.

Yes, if clients have BO accounts with other brokers / merchant banks, can open another separate BO account or link BO account with LankaBangla.

If client have existing BO account with other broker house / merchant bank, he/she can open link BO account with us.

Client can transfer shares between linked BO accounts but cannot transfer fund in the link account.

Advisory Services

Initial Public Offering (IPO), Initial Qualified Investor Offer (IQIO), Alternative Trading Board (ATB) and Direct Listing are the possible ways to get listed your securities in the bourses. 

You can offer securities for public through Initial Public Offering (IPO) or Repeat Public Offering (RPO). 

Yes, there is ‘SME Platform’ in the bourses to facilitate the Small Capital Companies or Start-up Companies.

Our experienced and expert team can fulfill your equity financing need through Rights Offering or Repeat Public Offering (RPO) or Repeat Qualified Investor Offer (RQIO).

If your securities get listed through direct listing (only applicable for Government owned entities) or Alternative Trading Board (ATB) platform without any further dilution or increasing of your paid-up capital. 

We provide IPO feasibility analysis, IPO readiness including corporate governance structuring & financial reporting advisory, post-IPO services and other corporate advisory services related to public offering and listing.

Our advisory wing deals with complex restructuring cases, by providing a range of services which include Mergers and Acquisitions (M&A), Corporate Restructuring, Demergers & Reverse Mergers, Divestments and Spin-Offs.

Yes, our advisory experts provide transaction advisory services which include:  Inward and outward [local-to-foreign] FDI advisory; Repatriation of foreign investments; Substantial Share Acquisitions (in accordance with the existing BSEC regulations); Valuation Advisory; Financial Modelling; Due Diligence; Transaction Structuring; Transaction Execution and Post Transaction Compliance.

Our arrangement team is adept at structuring and raising funds through all types debt and quasi-debt instruments currently viable in the Bangladeshi market, which include Bond Issuance, Islamic Finance Solutions (Sukuk, Islamic Syndicated Loans), Preference Share Issuance, Securitization (Asset/ Mortgage-Backed Securities) and Loan Syndication (local and foreign currency).

Yes, we provide alternative fund arrangement services to support companies where the traditional funding sources may not be optimal. Under the private equity & venture capital advisory and arrangement service, clients receive both advisory and capital raising services which include Readiness Analysis, Advisory on Restructuring, Structuring Equity Offering, Pitching to Foreign/ Local Investors, Transaction Designing & Execution, and Post Investment Advisory & Compliance.

Yes, LBIL caters to the needs of both foreign and local clients. The host of advisory and fund arrangement services are tailor-made to assist existing foreign clients operating in Bangladesh, potential foreign clients aiming to enter Bangladesh, and existing foreign clients who plan to exit the country.

For foreign investors looking to invest in Bangladesh, our advisory experts provide specialized solutions that include assessing the market for potential opportunities, assistance in setting up of physical presence, valuation and financial modelling services, assistance and guidance in obtaining regulatory approval and post-transaction compliance. For foreign investors looking to exit the country, LBIL provides advisory services for entire transactions, as well as valuation services for repatriation as required by the regulatory authority, to facilitate a smooth exit.

Yes, our advisory team assists in outward FDI, or local-to-foreign investment by local companies wishing to expand business overseas. In particular, the team assists in exploring foreign markets, assists in preparing the necessary documentations for the regulators and maintains liaison with the relevant stakeholders.

Some of the milestone local-to-foreign FDI deals closed by LBIL include:

  • M&J Group’s Foreign Investment in Hong Kong
  • A-J Super Garments Limited (NASSA GROUP)’s Foreign Investment in Kingdom of Saudi Arabia

LBIL is highly reputed in the industry for its advisory services, in particular, Mergers and Acquisitions (M&A), Transaction Advisory for Inward and Outward Foreign Direct Investments (FDI), Repatriation and Corporate Restructuring and Valuation Services.  Our team has years of experience and a wide network of investors and buyers to cater to the fund arrangement and private equity & venture capital needs of clients.

The team is also widely known in the country and financial community for bringing quality debt & quasi-debt instruments and issuers to the market.

LBIL is the only merchant bank that provides a diverse portfolio of services that encompasses advisory, traditional fund arrangement and alternative fund arrangement. With experience of working in local and cross border transactions, networks, and investor pools, our team is the most reliable and trustworthy to provide tailored solutions to meet clients’ needs.

Some of the most reputed deals closed by LBIL include:

  • Substantial Share Acquisition of Unilever Overseas Holdings B.V. (Unilever – GSK)
  • Acquisition by STS Holdings Limited (Apollo Hospital – Evercare Group)
  • Merger of Summit Power Limited (Merger of 4 concerns of Summit Group)
  • Merger of Confidence Infrastructure Limited (Merger of 6 Companies)
  • Merger of Doreen Power Limited (Merger of Saiham Power Plant with Asian Entech Power Corporation)