MF profits down in H1 amid stock depression

A prolonged depression in the country’s stock market continued to take its toll on the mutual fund sector as profits of majority of the funds decreased in the first half of the current fiscal year compared with those in the same period of the previous year.
An MF is one type of professionally-managed scheme which pools money from many investors and is supposed to invest money in stocks on behalf of the investors.
According to DSE data, of the 41 listed mutual funds, profits of 22 MFs dropped in July-December, 2012 compared with those in the same period of the previous year.
Only 12 mutual funds managed to get increased profits while four other MFs offset their losses in the period.
The net asset value of each unit of most of the funds came down below their offer price of Tk 10 as the prices of the shares the funds bought fell heavily because of the prolonged depression in the capital market.
Most of the mutual funds are being traded at the DSE at prices lower than their face value of Tk 10.
Market experts said the long-lasting depression in the stock market, policy restriction and incompetence of the fund managers were the major reasons for the disaster for the mutual fund sector.
‘The funds which are losing money were launched in and after 2010. These were launched with a mandatory 75 per cent stock market investment provision,’ Mahmood Osman Imam, who teaches finance at Dhaka University, told New Age.
He said as the market was going through a depression for the last two years, the portfolio erosion of the funds was inevitable due to their huge investment in the stock market.
‘The funds which are better off actually evaded the obligation and invested major portion of fund in the money market,’ he said.
He said that as the mutual funds could not diversify their investments, they had to bear the losses.
‘The new mutual fund rules, however, has addressed some of the issues including reducing mandatory investment to 60 per cent,’ he said.
He, however, criticised the Bangladesh Securities and Exchange Commission’s move to allow only the coming funds stock dividend.
‘It does not ensure a level playing field and the old funds have to suffer more because of this,’ he said.
In 2011 and 2012, eleven mutual funds were launched and majority of those funds realised their public subscriptions with the help of other mutual funds.
The MFs which made decreased profits in July-December are First Janata Bank Mutual Fund whose profit declined to Tk 3.97 crore from Tk 5.56 crore, First ICB Mutual Fund to Tk 0.84 crore from Tk 1.12 crore, Fourth ICB Mutual Fund to Tk 1.12 crore from Tk 1.12 crore, Sixth ICB Mutual Fund to Tk 1.44 crore from Tk 2 crore, Eighth ICB Mutual Fund to Tk 1.73 crore from
Tk 2.74 crore, EBL NRB Mutual Fund to Tk 3.86 crore from Tk 4.80 crore and EBL First Mutual Fund to Tk 3.19 crore from Tk 7.20 crore.
ICB AMCL First NRB Mutual Fund’s profit fell to Tk 1.67 crore from Tk 1.68, ICB AMCL Second NRB Mutual Fund to Tk 6.17 crore from Tk 13.14 crore, ICB AMCL Third NRB Mutual Fund to Tk 1.13 crore from Tk 2.20 crore, ICB AMCL Second Mutual Fund to Tk 0.78 crore from Tk 2.52 crore, ICB Employees Provident MF 1: Scheme 1 to Tk 0.90 crore from Tk 2.32 crore, ICB AMCL Islamic Mutual Fund to Tk 0.66 crore from Tk 0.75 crore, IFIC Bank First Mutual Fund to Tk 3.75 crore from Tk 4.26 crore, IFIL Islamic Mutual Fund-1 to Tk 0.66 crore from Tk 1.04 crore, Phoenix Finance First Mutual Fund to Tk 0.67 crore from Tk 2.27 crore, PHP First Mutual Fund to Tk 3.86 crore from Tk 4.06 crore, Popular Life First Mutual Fund to Tk 4.94 crore from Tk 5.22 crore, Prime Bank First ICB AMCL Mutual Fund to Tk 1.04 crore from Tk 2.33 crore, Reliance One the first scheme of Reliance Insurance Mutual Fund to Tk 2.18 crore from Tk 3.15 crore, Southeast Bank First Mutual
Fund to Tk 3.69 crore from Tk 4.94 crore and Trust Bank First Mutual Fund to Tk 4.93 crore from Tk 10.23 crore.
The MFs whose profits increased in the period are First Bangladesh Shilpa Rin Sangstha Mutual Fund whose profit advanced to Tk 3.07 crore from Tk 1.08 crore, Second ICB Mutual Fund to Tk 0.76 crore from Tk 0.71 crore, Third ICB Mutual Fund to Tk 1.11 crore from Tk 1 crore, Fifth ICB Mutual Fund to Tk 1.60 crore from Tk 1.53 crore, Seventh ICB Mutual Fund to Tk 1.98 crore from Tk 1.79 crore, AIBL First Islamic Mutual Fund to Tk 9.35 crore from Tk 4.23 crore, Grameen Mutual Fund One to Tk 2.68 crore from Tk 1.76 crore,
Grameen Mutual Fund Two to Tk 7.09 crore from Tk 4.83 crore and ICB AMCL First Mutual Fund to Tk 3.33 crore from Tk 2.79 crore.
NLI First Mutual Fund made a profit of Tk 2.56 crore, AB Bank First Mutual fund Tk 4.60 crore and First Bangladesh Fixed Income Fund Tk 20.79 in the first half of the accounting year.
The MFs which offset their losses in the period are AIBL First Islamic Mutual Fund whose loss decreased to Tk 2.27 crore from Tk 5.59 crore, DBH First Mutual Fund to Tk 1.70 crore from Tk 15.97 crore and Green Delta Mutual Fund to Tk 4.40 crore from Tk 20.47 crore in July-December, 2012.
NCCBL Mutual Fund One, Prime Finance First Mutual Fund and LR Global Bangladesh Mutual Fund One are yet to publish their financial reports for the period.

Courtesy of New Age

Related News

Phone producers must preinstall Bijoy app, although users are under no obligation: Jabbar

Business Desk : dhakamirror.com Preinstallation of Bijoy app on android phones is still mandatory for the importers and manufacturers of the devices, but it is not obligatory for the users to use the Bangla writing software, Telecom Minister Mustafa Jabbar said today. The Bangladesh Telecommunication Regulatory Commission (BTRC) has not changed its stance over the ... Read more

‘Richest 1% seize two-thirds of fresh $42 trillion created since 2020′

Oxfam report says Business Desk : dhakamirror.com A new Oxfam report shows that the top 1% of the world’s wealthiest people have taken almost two-thirds of the $42 trillion in new wealth that has been created since 2020. This is almost twice as much money as the bottom 99% of the world’s population has. A ... Read more

‘Richest 1% seize two-thirds of fresh $42 trillion created since 2020′

Oxfam report says Business Desk : dhakamirror.com A new Oxfam report shows that the top 1% of the world’s wealthiest people have taken almost two-thirds of the $42 trillion in new wealth that has been created since 2020. This is almost twice as much money as the bottom 99% of the world’s population has. A ... Read more

Puma extends footprint

Business Desk : dhakamirror.com The global footwear and apparel giant Puma has opened a flagship store in Chattogram, Bangladesh. With the new one, the total number of showrooms of Puma in Bangladesh rises to four. The brand has three outlets in Dhaka, launched by DBL Group, the franchise partner of Puma in Bangladesh. Bangladeshi cricketer ... Read more

First time gold prices exceed Tk 93,000 per bhori

Business Desk : dhakamirror.com The Bangladesh Jewellers’ Association (Bajus) has decided to raise gold prices for a third straight week, effective tomorrow. According to a press release issued by Bajus yesterday, the price of one bhori (11.66 grams) of 22-carat gold has increased by 3 percent, to around Tk 93,400, as of today. It said ... Read more

Tk 351 crore apartments, plots sold, booked in REHAB Fair 2022

Business Desk : dhakamirror.com Flats, plots and commercial spaces worth around Tk 351.16 crore were sold and booked in the 22nd edition of the REHAB Fair, which ended today. Of them, Tk 168 crore came from the sales and booking of flats, Tk 80 crore from plots and Tk 53.73 crore from commercial spaces, according ... Read more

StanChart wins The Banker’s ‘Best Bank award

Business Desk : dhakamirror.com Standard Chartered Bangladesh was recently named as the “Best Bank in Bangladesh” by The Banker magazine’s Bank of the Year Awards 2022. The Banker provides economic and financial intelligence for the world’s financial sector, combining in-depth regional and country coverage with reports on markets, banking, regulation, risk, transactions and technology and ... Read more

10 new products require BSTI certification

Business Desk : dhakamirror.com Bangladesh Standards and Testing Institution (BSTI) has added 10 new products to the list of items that need to be certified by the national standards body. The new products are: disposable diapers, facewash, petroleum jelly, flatbread/tortilla, shaving foam or gel, eye care, hair dye liquid, aerosol, shoe polishing and geyser. The ... Read more

Walton introduces hire purchase and family protection

Business Desk : dhakamirror.com Walton has launched a hire purchase and family protection policy along with a one-stop service solution. SM Mahbubul Alam, managing partner of Walton Plaza, inaugurated the ‘Hire Purchase and Family Protection Policy’, ‘One-stop Service Solution’ and ‘Hire Purchase and Family Protection Week’ at a programme held at Walton Corporate Office in ... Read more

ICAB, auditor general office to exchange knowledge

Business Desk : dhakamirror.com The Institute of Chartered Accountants of Bangladesh (ICAB) and the Office of the Comptroller and Auditor General (OCAG) of Bangladesh signed a memorandum of understanding (MoU) recently to sharing knowledge by jointly developing and introducing courses and programmes.  The two entities will also work towards developing customised training programmes and disseminating ... Read more

Shahjalal Islami Bank gets first place in 22nd ICAB National Award

Business Desk : dhakamirror.com Shahjalal Islami Bank has won first position for the best presented annual report-2021 at the 22nd ICAB National Award recently. Mohammed Younus, chairman of the bank, Mosleh Uddin Ahmed, managing director, and Md Jafar Sadeq, chief financial officer, received an award from Commerce Minister Tipu Munshi at Pan Pacific Sonargaon Dhaka, ... Read more

Islami Bank wins ICMAB Best Corporate Award 2021

Business Desk : dhakamirror.com Islami Bank Bangladesh Limited IBBL won the ICMAB Best Corporate Award 2021 for “Private Commercial Bank (Islamic Operation)”. Commerce Minister Tipu Munshi handed over the award to Muhammad Qaisar Ali, additional managing director of the bank Thursday (1 December) at a ceremony held at Hotel InterContinental Dhaka. JQM Habibullah, additional managing ... Read more

Brac Bank holds fire safety awareness sessions during Fire Service Week

Business Desk : dhakamirror.com To observe Fire Service Week, Brac Bank held a fire safety awareness event for its people in conjunction with the Fire Service and Civil Defence Department. The bank arranged a fire safety drill at its head office in Dhaka on 17 November, said a press release. The department observes Fire Service ... Read more

Premier Cement Mills PLC obtains ICMAB ‘Gold Award’ for cement manufacturing

Business Desk : dhakamirror.com Once again, Premier Cement Mills PLC has taken home the Gold in the Cement Manufacturing category at the ICMAB Best Corporate Award 2021. Mohammed Amirul Haque, managing director of Premier Cement Mills PLC, received the award from Commerce Minister Tipu Munshi at a city hotel on 1 December.  Among others Federation ... Read more

IPDC Finance took home “gold” for ICMAB Best Corporate Award 2021

Business Desk : dhakamirror.com IPDC Finance was honored with the Gold Award in the NBFI category at the ICMAB Best Corporate Award 2021. The awards event took place on Thursday, December 1 at the Intercontinental Dhaka, said a press release issued in this regard. Commerce Minister Tipu Munshi handed over the awards to the recipients as ... Read more

Agora, BD Recycle Technologies to work on solid-waste management 

Business Desk : dhakamirror.com Agora Limited has recently joined hands with BD Recycle Technologies Limited (BRTL) to work together with the goal of ensuring sustainable solid-waste management. A memorandum of understanding has been signed in this regard, where these two institutions will work towards environmental protection through modernisation of waste management, reads a press release. ... Read more

ICMAB Best Corporate Award goes to 65 firms

Business Desk : dhakamirror.com A total of 65 businesses were awarded the “Best Corporate Award 2021” by the Institute of Cost and Management Accountants of Bangladesh (ICMAB) for their efforts in establishing corporate governance. After examining each company’s annual report, the ICMAB presented them with honors Thursday night at a local hotel during its annual ... Read more

Meghna Bank to avail mobile financial solution platform

Business Desk : dhakamirror.com Meghna Bank recently signed a tripartite agreement with ModeFinServer Private and Genex Infosys at the bank’s head office in Gulshan, Dhaka to avail a mobile financial solution platform from the former and provide logistics and localisation support from the latter.  Sohail RK Hussain, managing director of Meghna Bank, Amarnath Chowdhury, managing ... Read more

Citibank NA appoints New Country Officer in Bangladesh

Business Desk : dhakamirror.com Citibank NA Bangladesh recently appointed a new country officer.  The appointee, Md Moinul Huq, joined Citibank NA in 2002 and previously worked for Al Baraka Bank and Dhaka Bank, said a press release. As country officer, Huq will lead the Citi franchise in Bangladesh and will be responsible for Citi’s business ... Read more

Shwapno establishes new outlet at Aftabnagar Siraj Convention Centre

Business Desk : dhakamirror.com A new outlet of the retail shop Shwapno was inaugurated at the Siraj Convention Centre in Aftabnagar, Dhaka. An event was held to mark the occasion on Tuesday noon, reads a press release issued in this regard. The programme was attended by landowner Md Siraj, Shwapno Head of Retail Administration Saiful ... Read more