Performance Evaluation of ICB Mutual and Unit Fund
Literature Review
The modern mutual fund was first introduced in Belgium in 1822. This form of investment soon spread to Great Britain and France. Mutual funds became popular in the United States in the 1920s and continue to be popular since the 1930s, especially open-end mutual funds. Mutual funds experienced a period of tremendous growth after World War II, especially in the 1980s and 1990s.
An open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. mutual funds raise money by selling shares of the fund to the public, much like any other type of company can sell stock in itself to the public. Mutual funds then take the money they receive from the sale of their shares (along with any money made from previous investments) and use it to purchase various investment vehicles, such as stocks, bonds and money market instruments. In return for the money they give to the fund when purchasing shares, shareholders receive an equity position in the fund and, in effect, in each of its underlying securities. For most mutual funds, shareholders are free to sell their shares at any time, although the price of a share in a mutual fund will fluctuate daily, depending upon the performance of the securities held by the fund. Benefits of mutual funds include diversification and professional money management. Mutual funds offer choice, liquidity, and convenience, but charge fees and often require a minimum investment. A closed-end fund is often incorrectly referred to as a mutual fund, but is actually an investment trust. There are many types of mutual funds, including aggressive growth fund, asset allocation fund, balanced fund, blend fund, bond fund, capital appreciation fund, clone fund, closed fund, crossover fund, equity fund, fund of funds, global fund, growth fund, growth and income fund, hedge fund, income fund, index fund, international fund, money market fund, municipal bond fund, prime rate fund, regional fund, sector fund, specialty fund, stock fund, and tax-free bond fund.
ICB initiated the mutual fund industry in Bangladesh. ICB has played the pioneering role in the development of mutual in the country. The country’s first mutual fund the “First ICB Mutual Fund” was launched on 25April1980. Since then ICB HAD floated 8 mutual funds up to 1986. ICB Mutual fund have become very popular with the investor due to among other payment of attractive dividends regularly.
Like previous years ICB also declared excellent dividend on its mutual fund during the year. The highest dividend of 265.0 percent declared on the first ICB Mutual Fund. The Dividend declared in 2007-08 by seven other mutual funds have also been very good. These are 75.0 percent in second, 65.0 percent in third, 60.0 percent in Forth, 45.0 percent in fifth, 30.0 percent in sixth, 30.0 percent in seventh and 25.0 percent in eighth ICB Mutual Fund. The rate’s of dividend for the previous year ranged from 18.0 percent to 240.0(190%, 1B:2) percent. During the year strong performance was manifested in the market price of ICB Mutual Funds. All the mutual funds were traded significantly above per value in both the bourses.
During the year, the portfolios of all the funds were reshuffled and managed judiciously to maximize return and minimize risk for the mutual fund holders.
ICB Unit Fund (an open –end fund) was launched in 10th April, 1981.After commencement of business of ICB Asset Management Company Ltd. from 1July 2002 ICB has stopped sale of units except issuance of certificate under cumulative investment plan (CIP). However, the existing portfolio of ICB Unit Fund is managed by ICB.
During 2007-2008, a total of 2526177 units of Tk.29.56 core were repurchased and 1910998 units of tk.20.45 core were issued under CIP .As on 30 June 2008, net units stood at 39008365 of tk.445.14 core
The numbers of unit holder were 23506 as on 30 June 2008, of which majority were small and medium savers.
An amount of Tk.91.91 core was invested by the fund in 97 securities during 2007-20008 and 166 securities worth Tk. 173.23 core were sold. As a result the net investment of the fund stood at tk. 563.39 core in 304 securities, market value of which was tk. 1053.8 core as on 30 June 2008.
In 2007-2008, total income of the fund amounting to tk 342.18 core earned by way of dividend and interest on debenture, capital gained, interest on bank deposit, premium on issuance of units, etc. on the other hand expenses totaling tk. 231.01 core was incurred on account of management fee commission, printing, and stationery, postage, provision against investment, etc. resulting in the fund net income of tk.111.17 core. This income together with the previous year undistributed income of tk. 36.32 cores stood at a total distributable income of tk. 147.49 cores. The distributable income per unit was thus tk. 37.81 as on 30 June 2008.
Dividend at the rate of tk.20.0 per unit was declared on the Fund for 2007-2008 as compared to tk. 13.0 per unit in 2006-2007 showing an increase of 53.85 per cent. The remaining distributable income of tk. 17.81 per certificate was retained.
Organizational Profile
Institutional Framework of ICB:
Investment Corporation of Bangladesh is a corporate body as per section 3 of Investment Corporation of Bangladesh Ordinance, 1976 and deemed to be a banking company within the meaning of the Banking Companies Ordinance, 1962 (L VII of 1962). The shares of corporation are listed with the stock exchange. ICB is an authorized broker of DSE.
Regulatory Framework of ICB:
As the mentioned earlier the regulatory framework of ICB is the, Investment Corporation Bangladesh Ordinance, 1976. This ordinance and regulations laid under the authority of the ordinance is the source of all power and authority of ICB. Through the recent enactment of “The Investment corporation of Bangladesh (Amendment) Act, 200” (XXIV) of 2000, scope of ICB’s activities through the formation of subsidiaries have been expanded. In addition to these, to resume its duties and functions, it has to compel by Companies Act 1994, Trust Act 1882, Insurance Act 1983, Security and exchange commission Act 1993, banking companies Act 1993, Foreign exchange regulation 1974, Income Tax act etc.
It is to note that no provision of law relating to the winding up of companies or bank shall apply to the corporation and the corporation shall not be wound up save by order of the government and in such manner as it may direct.
Management of ICB:
The head office of the corporation as per the requirement of the ordinance of ICB is located at Dhaka. The general direction and superintendence of the corporation is created in a board of directors, which consist of 11 persons including the chairman and managing director of ICB. The board of directors consists of the following directors:
- The chairman to be appointed by the government.
- The directors to be appointed by the government from among persons serving under the government.
- One director to be nominated by the Bangladesh Bank.
- The managing directors, Bangladesh Shilpa Bank, Ex-Office.
- The managing directors, Bangladesh Shilpa Rin Sangstha, Ex-office.
- Four other directors to be elected by the share holders other than the government, BB, BSB, & BSRS.
- The managing directors of ICB to be appointed by the government. The board in discharging its functions acts on commercial consider rations with due regard to the interests of industry and commerce, investment climate, capital market, depositors, investors and to the public interest generally and is guided in question policy by the institutions, if any, given to by government which shall be sole judged as to whether a question is a questio9n of policy or not.
The managing director is the chief executive of the corporation. The corporation has an executive comprised of 5 people including managing director.
Administration, Human Resource:
Investment Corporation of Bangladesh (ICB) is providing different category of financial and banking services. Nature of the different division departments vary, such that Economic and Business Research (EBR) department requires teamwork, Lone Appraisal division requires professional work. Funds divisions need chain work. Managing director is entrusted with authority to transact the regular business of the organization; he may delegate some authority to officials of the Corporations. However, most of the policy decisions are taken by the different committee with the approval of managing director and where required of the board. it is the discretionary authority of the board to constitute the execute committee and to maintain its Chairman to assist the board in the discharging of the function stated under the ordinance. The board may appoint such other committee (s) as it thinks fit to assist it in the efficient discharge of its function. So far, board has appointed two such committees. Economic and Business Research (EBR) committee and Loan Appraisal committee is headed by General Manager.
Organogram of ICB:
Evaluation of ICB Mutual Fund and Unit Fund
Overall Evaluation of the ICB Mutual Fund
Introduction
It is a recognized principle that diversification of investment reduces risk. An individual may not have the time, expertise and resources to undertake such diversification. Here arises the advantage of a Mutual Fund. Mutual Funds pool the savings of a great number of investors and make investments in a wide array of securities. In Bangladesh ICB has pioneered Mutual Funds for the sake of investors and of the capital market. Country’s first Mutual Fund the “First ICB Mutual Fund “was floated on 25th April 1980. Since then ICB has, over the years, floated 8 Mutual Funds with the total capital of Tk. 17.50 crore. ICB Mutual Funds continued to command the confidence and attraction of investors as lucrative and rewarding investment in terms of steady dividend performance.
ICB has been able to declare attractive dividends on its Mutual Funds during 2006-2007 as previous year. Among the 8 Mutual Funds the highest dividend of 240.00 percent was declared on the First ICB Mutual Fund Including190.00 percent in cash and 50.00 percent in stock. The dividend declared by seven other mutual funds ranged from 62.00 percent followed by 18.00 percent on the Second and Third ICB Mutual Funds. The rates dividend for the previous year ranged from 210.00 percent to 15.00 percent. Strong performance of the funds is reflected in the market prices of the funds. All the mutual funds were traded significantly above par value in both the bourses.
The portfolio all of the mutual funds were managed with diligence and prudence to ensure maximization of return and minimization of risk in the interest of investor.
What is Mutual Fund?
Mutual Funds are also known as close ended Mutual Funds. The issued capital of a Mutual Fund is limited, that is, a Mutual Fund offers a limited number of certificates for sale to the public. The amount of capital and the number of certificates of each Mutual Fund remains unchanged. ICB Mutual Funds are independent of one another. A Mutual Fund being listed is traded on the Stock Exchanges. Price of Mutual Fund certificates after IPO is determined on the Stock Exchanges through interaction of supply and demand. The market price of a Mutual Fund certificates is available in Stock exchange quotations and in newspapers. .
Types of Mutual Fund:
Any Mutual Fund could be of either of the following two kinds
o Open-end Mutual Fund
o Close-end Mutual Fund
Open-end Mutual Fund:
Open-end investment company is a fund that continues to sale and repurchases their shares after their initial public offering. They stand ready to sell additional number of shares and thus keep going larger. The open-end fund company can by or sale their own shares.
Close-end Mutual Fund:
A close-end investment company operates like any other public firm. Their stock is traded on regular secondary market and the market price of its shares is determined by the supply and demand. It has a definite target amount for the found and cannot sell more shares after its initial offering. Its growths in terms of number of shares are issued like any other company’s new issues listed and quoted it stock exchange.
Objective of Mutual Fund:
The objective of any fund would fit into one of three broad categories.
i) Income: The emphasis is on producing a steady flow of dividend payment.
ii) Capital gain: The manager concentrates on increasing the value of principal through appreciation of the stocks held.
iii) Income and capital gain: Some combination of the first two approaches.
Advantages of Mutual Fund:
· Mutual Fund substantially minimizes the investment risk of small investors through diversification in which funds are spread out into various sectors, companies, securities as well as entirely different market.
· Mutual Fund mobilizes the savings of small investor and channels them into lucrative investment opportunities. As a result, Mutual Fund adds liquidity to the market.
· Mutual Fund provides the small investors access to the whole market that at an individual level, would be difficult if not impossible to achieve.
· Because funds are professionally managed, investors are relieved from the emotional strain associated with the day to day management of the fund.
· The investors save a great deal in transaction costs given that s/he has access to a large number of securities by purchasing a single share of a Mutual Fund.
· The investors can pick and chase a Mutual Fund to match his/her particular needs.
· Mutual Fund is the only vehicle which operates simultaneously both at the demand as well as the supply side of the market. On the supply side, the Mutual Fund being itself security at the SEC introduces a good and reliable instrument in the capital market for the small but astute investor.
· Mutual Fund is one of the most strictly regulated investment vehicles. The laws governing Mutual Fundrequire exhaustive disclosure to the SEC as well as the general public. The laws also entail continuous regulations of fund operations by the Trustee.
Launching of ICB Mutual Fund:
Launch Mutual Fund in different period with different paid up capital.
| Mutual Fund | Date of Floatation | Paid up capital (Tk. In lack) |
| First ICB Mutual Fund | 25 April,1980 | 50.00 |
| Second ICB Mutual Fund | 17 June,1984 | 50.00 |
| Third ICB Mutual Fund | 19 May,1985 | 100.00 |
| Fourth ICB Mutual Fund | 6 June, 1985 | 100.00 |
| Fifth ICB Mutual Fund | 8 June, 1987 | 150.00 |
| Sixth ICB Mutual Fund | 16 May,1988 | 500.00 |
| Seven ICB Mutual Fund | 30 June,1995 | 300.00 |
| Eighth ICB Mutual Fund | 23 July,1996 | 500.00 |
Source: ICB Annual Report 2007-2008
Details Description of the ICB Mutual Fund
Consolidated Portfolio Statement:
As on 30 June 2005cost price and market price of eight Mutual Funds were Tk. 4815.15 lac and Tk 5864.83 lac respectively. A consolidated statement of the portfolio of the Funds is given in the following table:
Consolidated position of portfolios of ICB Mutual Funds as on June 2007
| Sl.no | Particulars | 1st Mutual Fund | 2nd Mutual Fund | 3rd Mutual Fund | 4th Mutual Fund | 5th Mutual Fund | 6th Mutual Fund | 7th Mutual Fund | 8th Mutual Fund | ||||||||
| 1 | No. of Companies | 60 | 69 | 83 | 90 | 102 | 135 | 129 | 126 | ||||||||
| 2 | No. of Securities | 60 | 71 | 84 | 91 | 103 | 136 | 132 | 128 | ||||||||
| 3 | Total investment at cost(lac) | 324.26 | 327.06 | 418.11 | 483.86 | 752.58 | 896.51 | 1130.41 | 1171.93 | ||||||||
| 4 | Market Value(30 June 2007) | 1524.69 | 383.40 | 545.04 | 778.64 | 1246.17 | 1160.94 | 1493.72 | 1544.30 | ||||||||
| Performance of ICB mutual fund | |||||||||||||||||
| SL NO | 2007 – 2008 | ||||||||||||||||
| Per certificate | As on 30 June 2008 | ||||||||||||||||
| Name of mutual fund | Size of Fund Tk in crore | Income Tk | Dividend Tk | Market price per certificate on DSE | Market Capitalization | ||||||||||||
| 1 | First ICB Mutual Fund | 0.75 | 331.03 | 265.00 | 7970.25 | 59.78 | |||||||||||
| 2 | Second ICB Mutual Fund | 0.50 | 107.14 | 75.00 | 3371.00 | 16.85 | |||||||||||
| 3 | Third ICB Mutual Fund | 1.00 | 92.86 | 65.00 | 1629.00 | 16.29 | |||||||||||
| 4 | Fourth ICB Mutual Fund | 1.00 | 85.73 | 60.00 | 1733.00 | 17.33 | |||||||||||
| 5 | Fifth ICB Mutual Fund | 1.50 | 64.26 | 45.00 | 2157.00 | 32.35 | |||||||||||
| 6 | Sixth ICB Mutual Fund | 5.00 | 42.85 | 30.00 | 889.75 | 44.49 | |||||||||||
| 7 | Seven ICB Mutual Fund | 3.00 | 42.86 | 30.00 | 1421.50 | 42.65 | |||||||||||
| 8 | Eight ICB Mutual Fund | 5.00 | 35.70 | 25.00 | 873.50 | 43.65 | |||||||||||
Price Movement and Transactions
During the year under review, certificates of eight Mutual Funds were actively traded on the floor of the Dhaka Stock Exchange Ltd and Chittagong Stock Exchange Ltd. The highest and lowest price of the eight Mutual Funds certificates on Dhaka Stock Exchange Ltd and position of total transaction during 2003-04 are shown in the following table:
Market prices of ICB Mutual Funds and Transactions during 2006-07
| Sl . no | Mutual Funds | Highest market price(taka)* | Lowest market price(taka)* | Annual transaction | |
| Number | Amount (Tk. In lac) | ||||
| 1 | First ICB Mutual Fund | 3500.00 | 2650.00 | 1263 | 36.31 |
| 2 | Second ICB Mutual Fund | 1100.00 | 721.00 | 1582 | 13.89 |
| 3 | Third ICB Mutual Fund | 690.00 | 460.00 | 6620 | 37.96 |
| 4 | Fourth ICB Mutual Fund | 700.00 | 458.00 | 10882 | 60.64 |
| 5 | Fifth ICB Mutual Fund | 465.00 | 200.00 | 13020 | 48.27 |
| 6 | Sixth ICB Mutual Fund | 350.00 | 175.25 | 131900 | 338.31 |
| 7 | Seven ICB Mutual Fund | 320.00 | 165.25 | 74432 | 187.93 |
| 8 | Eight ICB Mutual Fund | 316.00 | 162.00 | 87470 | 211.39 |
How to buy existing Mutual Funds
An investor can purchase any of the existing eight ICB Mutual Funds certificates through the Stock Exchanges at the prevailing Market Price. However, if an investor buys Mutual Fund certificates through the Stock Exchanges he/she must be careful to submit the certificates along with duly filled-in transfer deed at ICB Head Office to ensure that the certificates are registered in his/her name.
Advance against Mutual Fund certificates Scheme:
Advance against ICB Mutual Fund certificates Scheme was introduced in 2003, designed for the ICB Mutual Fund Certificate holders to meet their emergency fund requirement. One can borrow maximum of 50% value of last one year’s weighted average market price of certificates at time of borrowing by depositing his/her certificates under lien arrangement from any of the ]CB offices. The rate of interest on the loan is reasonable and also competitive.
Management Fee, Charges etc.
At present management fee @ 1% on the paid up capital of the Fund is charged annually. No amount is charged on account of custodial and trust services. Part of operating expenses are charged to the respective Mutual Funds on pro rata basis
Assets of ICB Mutual Funds
ICB Mutual Funds Certificates holders shall have unfettered ownership in the assets of the Fund to which they are related. In case of winding up of the Corporation the assets belonging to any ICB Mutual Fund shall not be treated as the assets of the Corporation.
Tax Concessions
(a) Investment in Certificates provides the same tax exemptions as an investment qualifying under Section 44 of the Income Tax Ordinance, 1984.
(b) Capital gains received on investment in the Fund Certificates shall not be included in the total income of a Certificate holder within the limits specified in the Income Tax Ordinance, 1984.
(c) Dividends received on investment in the Fund will be treated as dividend income under Income Tax Act, and will be exempted from tax with the limits specified in the Act.
(d) The Fund incomes are to be exempted from all taxes as granted by the Government as per SRO No 80-L/80 dated April, 1980.
Management of the Funds
There is a decision making board in order to manage different Mutual Funds. As per board’ s decision securities are bought under different Mutual Funds. At the same way securities are sold. In case of new Mutual Fund subscribes for public issue. ICB authority is made portfolio earlier by its own finance and given it name. After that it is published on any newspaper as prospectus. By studying this prospectus public response whether they will buy the Mutual Fund or not.
Declaration of Dividend
The net income received on investments of Funds on account of dividend, bonus, interest, capital gain etc. are distributed amongst the Certificate holders as per decision of the Board of Directors of ICB. Board declares such income in the form of dividend at the end of July each year. Dividends declared by ICB in the past on the Mutual Funds were very attractive. The year-wise per certificate dividend performance of the Funds is given below.
Rate of the Dividend per Certificate (Taka)
| FY | Funds | 1 st | 2 nd | 3 rd | 4 th | 5 th | 6 th | 7 th | 8 th |
| 1980-81 | 20 | ||||||||
| 1981-82 | 20 | ||||||||
| 1982-83 | 20 | ||||||||
| 1983-84 | 25 | ||||||||
| 1984-85 | 35 | 21 | |||||||
| 1985-86 | 38 | 23 | 21 | ||||||
| 1986-87 | 41 | 25.5 | 22.5 | 21.5 | |||||
| 1987-88 | 48 | 28 | 25.5 | 23 | |||||
| 1988-89 | 49 | 29 | 26 | 23.5 | 20.5 | 15.5 | |||
| 1989-90 | 49 | 29 | 26 | 23.5 | 20.5 | 13.25 | |||
| 1990-91 | 35 | 22 | 19 | 17 | 10 | 6 | |||
| 1991-92 | 31 | 22 | 19 | 18 | 11 | 6 | |||
| 1992-93 | 31.5 | 21 | 18 | 17 | 12 | – | |||
| 1993-94 | 45 | 27 | 22 | 40 | 25 | 16 | |||
| 1994-95 | 50 | 40 | 27 | 41 | 28 | 18 | |||
| 1995-96 | 60 | 42 | 28 | 41 | 30 | 20 | 18 | ||
| 1996-97 | 70 | 45 | 38 | 45 | 35 | 24 | 21 | 18 | |
| 1997-98 | 70 | 30 | 35 | 32 | 22 | 18 | 14 | 12 | |
| 1998-99 | 100 | 32 | 38 | 35 | 20 | 15 | 13 | 12 | |
| 1999-2000 | 125 | 35 | 40 | 36 | 21 | 16 | 13.5 | 12.5 | |
| 2000-2001 | 170 | 40 | 45 | 38 | 23 | 17 | 14 | 13 | |
| 2001-2002 | 175 | 42 | 50 | 40 | 24 | 17.50 | 14.50 | 13.50 | |
| 2002-2003 | 180 | 45 | 50 | 40 | 24 | 17.50 | 14.50 | 13.50 | |
| 2003-2004 | 200 | 50 | 50 | 45 | 24 | 17.50 | 15 | 14 | |
| 2004-2005 | 210 | 55 | 52 | 48 | 27 | 18.50 | 16 | 15 | |
| 2005-2006 | 210 | 55 | 52 | 48 | 27 | 18.50 | 16 | 15 | |
| 2006-2007 | 190 | 62 | 56 | 52 | 33 | 23.00 | 22.50 | 18 | |
Performance Evaluation of ICB Mutual Funds
Mutual Funds substantially lower the investment risk of small investors, through diversification, in which funds are spread out in to various sectors. Because of funds are professionally managed, investors are relived from the emotional strain associated with the management of the fund. For the betterment of small and medium investors up to September,2005 ICB floated eight close ended Mutual Fund , with total paid up capital of Tk 17.50 crore and going to float the ninth very soon.
These funds are very popular with the small and medium investors because of having scope of capital gain as well as attractive return in terms of dividend.
It is not an easy task for the portfolio manager to manage the mutual funds, because its performance is directly related with the security market and many macroeconomic variables. But due to the efficient management of ICB officials, they (MF) become attractive investment decision.
Now we will analyze the past performance of the eight mutual funds and try to evaluate them.
Different Types of ICB Mutual Funds
Different types of ICB mutual funds are available for consumers. These funds lunched in different period of time and different rate of interests are given on the mutual funds. These are shortly described below
First ICB Mutual Fund
The 1st ICB Mutual Fund was floated at 25th April, 1980. It is the most attractive mutual fund among the others.
Dividend Income:
The Fund had earned dividend of Tk. 37, 22,439.00 from 34 securities during 2006-2007 of which a sum of Tk. 21, 28,407.00(57.18 percent) was received in cash within 30June 2007.
Capital Gains on Sale of Investments:
During 2006-07 the Fund earned Tk. 94, 82,425.00 as capital gains by securities of 21 companies as shown in the following table:
| Sl. No | Name of the company | No.of Securities sold | Capital gain(taka) |
| 1 | Altex industries Ltd. | 1800 | 41240. |
| 2 | Apex foods Ltd. | 850 | 141628. |
| 3 | AB Bank Ltd. | 200 | 274570. |
| 4 | Ashraf textile mills Ltd. | 31500 | 221755 |
| 5 | BATBC Ltd. | 24150 | 1251400 |
| 6 | Bangladesh industrial finace co. Ltd. | 200 | 1251400 |
| 7 | Beximco pharmacuticals Ltd. | 15650 | 510105. |
| 8 | BOC Bangladesh Ltd. | 3150 | 361779. |
| 9 | BRAC Bank Ltd. | 2800 | 1191600 |
| 10 | Dhaka electric supply co. Ltd. | 3300 | 508657 |
| 11 | Golden son Ltd. | 200 | 1251400 |
| 12 | IPDC Ltd. | 1400 | 289650 |
| 13 | ICB AMCL first mutual fund Ltd. | 200 | 32500 |
| 14 | Langka bangla finance Ltd. | 10000 | 103200 |
| 15 | Miracle Industries Ltd. | 5000 | 55950 |
| 16 | Mutual Trust Bank Ltd. | 300 | 103737 |
| 17 | One Bank Ltd. | 50 | 10554 |
| 18 | Power Grid co. Bangladesh Ltd. | 24550 | 3241 |
| 19 | Shahjalal Islami Bank Ltd. | 100 | 12400 |
| 20 | Standard Bank Ltd. | 1600 | 406966 |
| 21 | The Premier Bank Ltd. | 2800 | 681312.50 |
Income, Expenses and Distributable Income
During the year 2006-2007 under review , the Fund earned a gross income of Tk. 1,41,73,493.00 by way of dividend income of Tk. 37,22,439.00,interest income of Tk. 1,86,629.00 on bank deposits , interest of Tk. 7,79,646.00 on current account with ICB, capital gains of k. 94.82.425.00 and other income of Tk. 2354.00. After deducting the total expense of Tk. 21, 32,711.00 incurred as staff expenses, management fee, printing and stationary, postage and telegrams, provision against investment and others, the net income of the fund stood at Tk. 1, 20, 40,782.00. Taking into account the previous year’s undistributed income of Tk. 2, 25, 21,510.00 the Fund had net distributable income of Tk.3, 45, 62,292.00 as on 30 June 2007 resulting in distributable income per certificate of Tk. 691.24 for 2006-2007.
Dividend:
The Fund declared dividend at the rate of Tk.240.00 per certificate of Tk. 100.00 each for the year 2006-07 as compared to Tk. 210.00 declared in the previous year. After making provision of Tk. 1,20,00,000.00 for payment of dividend the Fund had an undistributed income of Tk. 2,25,62,292.00 .The Year –wise dividend performance of the Fund is shown in the following table;
Year –wise dividend Performance of ICB Mutual fund
| Financial Year | Dividend Per Certificate |
| 1995-96 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2006-2007 | 60.00 70.00 70.00 100.00 125.00 170.00 175.00 180.00 200.00 210.00 190.00 |
Portfolio:
As on 30 June 2007 the Fund had securities of 60 companies in its portfolio with a total cost of Tk. 324.26. lac. During 2006-2007 the Fund made additional investment of tk. 91.91 lac in securities of 16 companies .The market value of the portfolio as on 30 June 2007 was Tk. 1524.69 lac .
The ex-dividend net asset value per certificate of Tk. 100.00 each of First Mutual Fund stood at Tk. 2700.00 and tk 3433.25 as on 30 June 2007.
The market price per certificate of Tk. 100.00 each of the fund was Tk.1672.50 and Tk. 2500.00 as on 2 July 2003 and 30 June 2004 respectively.
The number of certificate holders of the fund was 988 as on 30 June 2007.
Second ICB Mutual Fund
Dividend Income and Interest Income:
The Fund had earned dividend and interest income of Tk. 17, 27,757.00 from 34 securities during 2006-2007 of which a sum of Tk. 15, 66,512.00(90.66 percent) was received in cash within 30June 2007.
Capital Gains on Sale of Investments:
During 2006-2007, the Fund earned Tk. 62, 07,855.00 as capital gains by securities of 16 companies as shown in the following table.
Statement of Capital Gains during 2006-2007
| Sl. no | Name of the company | No. of Securities sold | Capital gain(taka) |
| 1 | Altex industries Ltd. | 250 | 6277.50 |
| 2 | Apex foods Ltd. | 330 | 43003.70 |
| 3 | Ashraf textile mills Ltd | 25100 | 159,262.00 |
| 4 | BIFC | 300 | 33,600.00 |
| 5 | Bangladesh welding Electrodes | 11500 | 250,450.00 |
| 6 | BRAC Bank Ltd. | 2900 | 1,234,225.00 |
| 7 | Dhaka Electric Supply | 2750 | 435,837.00 |
| 8 | Golden son Ltd | 2000 | 13,800.00 |
| IPDC Ltd. | 900 | 195,500.00 | |
| ICB AMCL first mutual fund Ltd | 100 | 18,500.00 | |
| Langka bangla finance Ltd. | 8500 | 121,850.00 | |
| Miracle Industries Ltd. | 8000 | 76,220.00 | |
| One Bank Ltd | 100 | 21,240.00 | |
| Power Grid Bangladesh | 22950 | 3,116,500.00 | |
| Standard Bank Ltd | 800 | 187,314.00 | |
| Premier Bank Ltd | 1150 | 294,275.00 | |
| TOTAL | 6,207,854.70 |
Income, Expenses and Distributable Income
During the year under review, the Fund earned a gross income of Tk. 79, 95,448.00 by way of dividend income of Tk. 17, 27,757.00, interest income of 58,186.00Tk. 17,27.00 on bank deposits , with ICB , capital gains of Tk. 62,07,855.00 and other income of Tk. 1650.00. After deducting the total expense of Tk. 16, 26,236.00 incurred as staff expenses, management fee, printing and stationary, postage and telegrams, provision against investment and others, the net income of the fund stood at Tk. 41, 87,736.00. Taking into account the previous year’s undistributed income of Tk. 89, 04,140.00the Fund had net distributable income of Tk.1, 27, 11,852.00as on 30 June 2007 resulting in distributable income per certificate of Tk. 254.24 for 2006-07.
Dividend:
The Fund declared dividend at the rate of Tk.62.00 per certificate of Tk. 100.00 each for the year 2006-2007 as compared to Tk. 55.00 declared in the previous year. After making provision of Tk. 31,00,000.00 for payment of dividend the Fund had an undistributed income of Tk. 96,11,852.00 .
The Year –wise dividend performance of the Fund is shown in the following table;
| Financial Year | Dividend Per Certificate |
| 1995-96 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 | 42.00 45.00 30.00 32.00 35.00 40.00 42.00 45.00 50.00 55.00 55.00 62.00 |
Portfolio:
As on 30 June 2007 the Fund had securities of 70 companies in its portfolio with a total cost of Tk. 327.06 lac. During 2006-2007 the Fund made additional investment of tk. 84.65 lac in securities of 18 companies .The market value of the portfolio as on 30 June 2007 was Tk. 383.40 lac .
The ex-dividend net asset value per certificate of Tk. 100.00 each of second Mutual Funds stood at Tk 418.34 as on 30 June 2007.
The market price per certificate of Tk. 100.00 each of the fund was Tk.721.00 and Tk. 900.50 as on 2 July 2006 and 30 June 2007 respectively.
The number of certificate holders of the fund was 989 as on 30 June 2007.
Third ICB Mutual Fund
Dividend Income and Interest Income:
The Fund had earned dividend and interest income of Tk. 22, 09,865.00 from 40 securities during 2006-2007 of which a sum of Tk. 18, 39,350.00(83.23 percent) was received in cash within 30June 2007.
Capital Gains on Sale of Investments:
During 2006-2007, the Fund earned Tk. 1, 16, 16,086.00 as capital gains by securities of 21 companies as shown in the following table.
Statement of Capital Gains during 2004-2005
| Sl. No | Name of the company | No.of Securities sold | Capital gain(taka) |
| 1 | AB Bank Ltd. | 600 | 649,233.00 |
| 2 | Ashraf textile mills Ltd. | 32000 | 170,785.00 |
| 3 | Bangladesh industrial finance co. Ltd. | 500 | 56,800 |
| 4 | Bangladesh welding Electrodes | 14500 | 294,100 |
| 5 | Bank Asia | 100 | 34,032.00 |
| 6 | BRAC Bank Ltd. | 3250 | 1,378,112.50 |
| 7 | Dhaka Bank Ltd. | 150 | 47,861.50 |
| 8 | Dhaka electric supply co. Ltd. | 3400 | 543,172.50 |
| 9 | Eastern Housing Ltd. | 3900 | 175,989.00 |
| 10 | Eastland Insurance Company Ltd | 100 | 7,233.00 |
| 11 | Golden son Ltd. | 4000 | 28,700 |
| 12 | IPDC Ltd. | 1800 | 37,13,000 |
| 13 | Langka bangla finance Ltd | 20000 | 2,69,050 |
| 14 | Miracle Industries Ltd. | 9000 | 82,910 |
| 15 | One Bank Ltd. | 200 | 41,218 |
| 16 | Power Grid co. Bangladesh Ltd | 22800 | 31,24,125 |
| 17 | Premier Bank Ltd. | 1500 | 3,84,125 |
| 18 | Pubali Bank Ltd. | 1815 | 11,57,929 |
| 19 | Southeast Bank Ltd. | 700 | 1,24,823 |
| 20 | Standard Bank Ltd | 1400 | 3,32,254 |
| 21 | United Leasing Co. Ltd. | 160 | 31,887.20 |
| Total | 9,305,540.60 |
Income, Expenses and Distributable Income
During the year under review , the Fund earned a gross income of Tk. 1,16,16086.00.00 by way of dividend and interest income from investment in securities of Tk. 22,09,865.00,interest income of Tk. 99,360.00 on bank deposits , capital gains of Tk. 93,05,541.00 and other income of Tk. 1320.00. After deducting the total expense of Tk. 47,05,206.00 incurred as staff expenses, management fee , printing and stationary ,postage and telegrams , provision against investment and others , the net income of the fund stood at Tk. 69,10,880 .00. Taking into account the previous year’s undistributed income of Tk. 1,15,14,705.00 the Fund had net distributable income of Tk.1,84,25,585.00 as on June 2007 resulting in distributable income per certificate of Tk. 184026 for 2006-2007.
Dividend:
The Fund declared dividend at the rate of Tk.56.00 per certificate of Tk. 100.00 each for the year 2006-2007 as compared to Tk. 52.00 declared in the previous year. After making provision of Tk. 56,00,000.00 for payment of dividend the Fund had an undistributed income of Tk. 1,28,25,585.00 .The Year –wise dividend performance of the Fund is shown in the following table;
Year –wise dividend Performance of ICB Third Mutual fund
| Financial Year | Dividend Per Certificate |
| 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 | 28.00 38.00 35.00 38.00 40.00 45.00 50.00 50.00 50.00 52.00 52.00 56.00 |
Portfolio:
As on 30 June 2007 the Fund had securities of 83 companies in its portfolio with a total cost of Tk. 418.11. lac. During 2006-2007 the Fund made additional investment of tk 101.74 lac in securities of 22 company’s .The market value of the portfolio as on 30 June 2007 was Tk. 545.04 lac.
The ex-dividend net asset value per certificate of Tk. 100.00 each of Third ICB Mutual Fund stood at Tk 359.06, as on 30 June 2007.
The market price per certificate of Tk. 100.00 each of the Third ICB Mutual fund was Tk.500.00 and Tk. 654.75 as on 3 July 2006 and 30 June 2007 respectively.
Fourth ICB Mutual Fund<