The decision was taken at the annual general meeting of AIMS Bangladesh where the shareholders of AIMS have approved the increase of the size of the fund.

Unitholders of AIMS First Guaranteed Mutual Fund yesterday voted in favour of extending the country's first mutual fund under private initiative by a period of 10 years.

The size of the fund will be increased through issuance and sales of additional units at par on a pro-rata basis to unitholders whose names appear on the register on June 30, 2005, with a capital guarantee of 50 percent.

The unprecedented move by the unitholders of AIMS First Guaranteed Mutual Fund reflects the confidence of the unitholders in the fund managers, said Managing Director of AIMS of Bangladesh Yawer Sayeed.

The fund was launched in 2000 with a 5-year initial tenure and 100 percent capital guarantee.

At the AGM, the unitholders suggested extending the tenure of the fund by another 10 years along with increasing the fund size.

The meeting was presided over by former finance secretary and Bangladesh Bank governor Khorshed Alam. The chairman of Bangladesh General Insurance Company Limited is the trustee to the fund.

The market price of AIMS First Guaranteed Mutual Fund yesterday jumped to Tk 1.97 from previous day's closing at Tk 1.65 per unit after the decision.