Databank is warming up to launch the initial public offer of another mutual fund.

The fund to be known as the Databank Balanced Fund, is a blend of investments in stocks and money market instruments such as treasury bills.

The fund managers hope to invest 50/50 or 40/60 in treasury bills and stocks. Databank currently has EPACK which invests in stocks, and Mfund which invests in treasury bills and the incoming fund will therefore be a hybrid of the two.

Sources close to the company say the prospectus is currently before the Securities Exchange Commission for approval.

Databank has already been licensed to operate the Balanced Fund and hopes to launch the product next month as soon as it is approved by the market regulator.

Uniquely, the fund will declare dividend and shareholders will have the option to have the dividend paid out or reinvested.