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Performance Evaluation of ICB Mutual Funds

International University of Business Agriculture And Technology Page 1

Chapter: 1Introduction

Part

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1.1 I ntroduction:

Bangladesh is one of the least developed countries in the world with minimum natural and

financial resources. The development of Bangladesh is being hindered due to lack of insufficient

capital. To accelerate the phase of industrialization through the development of capital marketand broadening the base of investment, The Investment Corporation of Bangladesh (ICB) was

established on 1 October 1976, under The Investment Corporation of Bangladesh Ordina1976 (No. XL of 1976). The establishment of ICB was a major step in a series of measuresundertaken by the Government to accelerate the pace of industrialization and to develop a well-

organized and vibrant Capital Market particularly securities market in Bangladesh. ICB caters to

the need of institutional support to meet the equity gap of the companies. In view of the national

policy of accelerating the rate of savings and investment to foster self-reliant economy, ICB

assumes an indispensable and pivotal role. Through the enactment of the Investment Corporation

of Bangladesh(Amendment) Act, 2000 (no. 24 of 2000), reforms in operational strategies and

business policies have been implemented by establishing and operating subsidiary companies

with ICB as the holding company.

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1.2 Ori gin of th e Report:

Internship means receiving practical experience through attending particular work physically.

Practically Internship means a way through which an internee, can gather experience about the

related subjects and be able to apply his theoretical experience in the field of real life action. Tomatch theoretical knowledge with that of practical field, internship plays a vital role for the

students of business education. Practical training is necessary to achieve complete knowledge

about something. Internship program is actually a form of practical training. With this program

the students get experiences and know that how much theoretical knowledge is deviated from the

real facts. To give that test, each business students of Department of Collage of business

Administration, International University of business Agriculture and technology has to carry out

an internship program. Thats why; I had been placed for internship program in InvestCorporation of Bangladesh (ICB) for a period of two months.

As a student of BBA, major in, Finance and Banking internship is an academic requirement. For

doing internship every student is required to work in a selected institution to enhance ones

practical knowledge and experiences.

For my internship I was sent to the Investment Corporation of Bangladesh (ICB), under the

supervision of Zahir Rayhan Salim, Department of Business Administration, International

University of Business Agriculture and Technology (IUBAT)). My supervisor asked me to

prepare a report on Performance evaluation of ICB Mutual Funds. I am doing the

internship at ICB from 23.10.2014 to 28.12.2014.

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1.3 Background of the Study:

Though ICB play a vital role in Bangladesh economy by accelerating the phase of

industrialization through the development of capital market and broadening the base of

investment few people have the knowledge about the corporation with vague meaning.

I have been placed in the Investment Corporation of Bangladesh (ICB) for internship program

and there was the opportunity to see the overall functions of the organization during my two

month internship program. As student of Department of Finance and Banking I have theoretical

knowledge and ICB is giving me the opportunity to gather knowledge in practical field.

I have got the opportunity to work in the Investment Corporation Bangladesh, as a part of the

internship program. It was time for me to get real life experience. Having understanding this I

decided to do my internship in renowned finance Corporation. Now a dayseverybody wants todo there internship in private bank as they are performing well. As I came to know that ICB is an

equity financer for the corporate investors and only disburse long term finance, and play a vital

role in capital market, I decide to do my internship in ICB.

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1.4 Objectives of the Study:

General objectives:

The main objective of this report is to assess the performanceEvaluation of ICB Mutual Funds,

the company named Investment Corporation of Bangladesh (ICB).

Specif ic objectives:

Specific objectives of this report are as follows:

1) To fulfill the requirement of BBA program as necessitated by Department of finance and

banking , International university of Business Agriculture and Technology (IUBAT).

2) To analyze the performance of ICB, its image and its role in the capital market of

Bangladesh.

3) To learn the practical aspect of the Investment Corporation of Bangladesh.4) To get aware about the working environment in advance that will help in adjusting a

student with the future working life.

5) To know the product of ICB at the securities market in Bangladesh.

6) To investigate the different functions performed by different department of ICB.

7) To investigate their different consumer perception & knowledge.

8) To explore the problems of ICB.

9) To give suggestion to overcome the problem.

10) To suggest how can they improve their services.

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1.5 Methodology of th e Study:

Methodology can be termed as underlying principles and rules of organization that work at the

background of the study. It clarifies the problem involving the research in an ordered and

systematic way. For this study data and other information can be collected by the following

ways :

Sources and Methods of Collecting Primary data:

Personal Interview: This is the most effective way to collect primary data. Through this

process the Trainee can confront a number of officials of ICB and shareholders. I interviewed

them by asking financial operation of ICB.

Briefing Session: In case of corporate organization, this method is very useful. Duringinternship period we visited different departments of ICB and took part briefing session .The

head of departments gave briefs the trainees which were very much useful for us and we

gathered some valuable information from their briefing.

By Observation : This process is very useful for gathering primary data. This process is

very costly, time consuming. Through this process limited but accurate data can be collected.

Sources and Methods of Collecting Secondary data

The secondary data had been collected with several relevant articles of the ICB.

These are given below:

ICB Annual Report (2012-2013). Annual Report of Mutual Fund (2012-2013). Annual Report of Unit Fund (2012-2013). Others materials of the Investment Corporation.

Other sources

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1.6 Scope of the Study:

The scope of the report was basically the operations and practices of Investment Corporation of

Bangladesh, in which I had undertaken the internship program. The scope of the study was in

the organization, Investment Corporation of Bangladesh (ICB). Since I was placed in the ICBand I worked in the head office, I gave my concentration on various important operations (ICB

AMCL, CML, and STCL). The study was confined only on the Head office and gave more

concentration on it. The data comparison was based on published information and an

additional survey was performed to get in-depth information, as it was the part of the objective

of the report. The empirical part included only published information and current practices of

Investment Corporation of Bangladesh.

1.7 L imi tation of th e Study:

In preparing this report I have faced a little limitation. During this Internship Report I have

worked all the departments of ICB one after another. So in this corporation part I mainly

connection of the functions of all departments. ICB is a large corporation, but study time is too

short on an organization like ICB and this was the main limitations of my Internship Program.

Other constraints I faced during the course of my study are as follows:

Relevant information is not available in English. Collecting information is a long process because of their paper base activity. Relevant papers and documents were not available sufficiently. At the time of face to face discussion with officials, there were no sufficient chairs and

tables.

Inadequate information. Our capital market is not so strong and mature so the various financial analyses cannot be

applied to judge the performance of the subsidiaries of ICB.

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Chapter: 2

Organization

Part

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2.1 H istori cal Background of I CB:

The striking contradiction in most of the underdeveloped world including Bangladesh is the large

availability of local capital on the one hand and a relatively small use of such capital in industry

on the other hand. Most of the privately owned capital is either invested in non- productivesector or has gone to safe haven in foreign countries. Large amounts of capital have also been

found in the pension funds and in the reserve of insurance companies. These funds if channeled

into industry, the problem of financing industrialization would be solved to a great extent.

Investors want to invest their surplus in investments, which offer safety, liquidity as well as

attractive rates of return. To meet the needs of investors of all types, a wide range and adequate

number of securities should be made available in the capital market. Institution and institutional

supports are absolutely necessary for such capital market activity. ICB, the national investment

house, is the lone organization to perform the activities by creating demand for securities and on

the other hand to ensure the supply of securities in Bangladesh capital markets. Investment

Corporation of Bangladesh was established on October 1, 1976, under the ICB ordinance No. XL

of 1976 to fulfill the following objectives:

To encourage and broaden the base of investment.

To develop the capital market.

To mobilize savings.

Through the recent enactment of The Investment Corporation of Bangladesh (Amendment) A2000 (XXIV of 2000), scope of ICBs activities through the formation of subsidiaries,have

been expanded. The companies were incorporated under Companies Act, 1994 with the Registrar

of Joint Stock Companies on December 5, 2000. Certificate of Commencement were also

obtained on the same day.

Preliminary registrations of the companies with the Securities and Exchange Commission (SEC)

were obtained on December 19, 2000 under certain terms and conditions. Subsequently,

Government of Bangladesh was approached to provide Tk. 5.25 corer soft loan to ICB to enable

it as the holding company to inject equities to the subsidiary companies. Anarrangement in this

behalf was signed between Government of Bangladesh & ICB on June14, 2001.

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2.2 ICB at a Glance:

Name: Investment Corporation of Bangladesh (ICB)

Date of Incorporation: October 1, 1976.

Nature: Investment Banking Company Related Law: Investment Corporation of Bangladesh Ordinance1976 (no. XL

1976)

Authorized capital: Tk. 1 billion

Paid Up Capital: Tk. 0.50 billion.

Face value of Share: Tk. 100.

Number of Shares: 10 million

Status: Corporation (Listed on the Stock Exchange).

Subsidiaries: ICB Asset Management Company Ltd. (AMCL)

ICB Capital Management Company Ltd. (CML)

ICB Security Trading Company Ltd. (STCL)

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2.3 Business Poli cy of the I CB:

The Corporation has adopted a realistic business policy framework within which its operation is

conducted. The corporation in its operating acts on commercial considerations with regard to the

interest of industry and commerce, investment climate, capital market depositors, investors andto the public interest generally.

The operational policies of the Corporation are as follows:

1) To act on commercial consideration with due regard to the interest of industry,

commerce, depositors, investors and to the public in general.

2) To provide financial assistance to projects subjects to their economic and commercial

viability.

3) To arrange equity and loans singly or through consortium of financial institutions

including banks.

4) Equity Support to projects and there by spreads the risks of understanding.

5) To develop and encourage entrepreneurs.

6) To diversify investments.

7) To inspire small and medium savers for investment in securities.

8) To create employment opportunities.

9) To encourage more investment in Agro-based and Information and CommunicationTechnology (ICT) sectors.

2.4 Objectives of the ICB:

The main objectives of ICB are as follows:

1. To provide for matters ancillary thereto.

2. To encourage and broaden the base of investments.3. To develop the capital market.

4. To mobilize savings.

5. To promote and establish subsidiary companies for business development.

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2.5 Vision of ICB:

ICB will be the leading responsible and environment friendly financial institution

operating in such a way that our fellow competitors watch, acknowledge and admire

emulates us as a role model of success.

2.6 Mission of ICB:

ordinance for fostering rapid growth of Bangladesh economy.

Being a financial architect, strive to established benchmark

of values, attitudes, behavior and commitments with earnest endeavor in generatingoptimum profits and growth for shareholders by efficient use of resources.

Being an innovative solution provider, put emphasis on

formulating total solution to foster mobilization of all domestic & NBR savings

into potential investment.

a performance leader, intended to lead by example,

operate in the interest of the customer & committed to do everything in their power

to for their customers everlasting trust.

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2.7 H ead Offi ce & Br anches:

Office of the Corporation

Head Office Local Office

BSB Building (12-15th Floors)

8, DIT Avenue, Dhaka-1000.

Post Box No. 2058

Phone : 9563455

E-mail : [email protected]

Kashfia Plaza (1st floor)

35/C, Nayapaltan,

VIP Road Dhaka-1000

Phone : (02) 9343288 , 8360815


Branch Office

Chittagong

Delwar Bhaban (3rd floor)104, Agrabad Commercial AreaChittagong.Phone : (031) 714851, 727064E-mail : [email protected]

Ananda Tower (2nd floor)Jail RoadSylhet.Phone : (0821) 714703, 2830458E-mail : icbsyl@sol_bd.com

Sylhet

Rajshahi

Dr. Gaffar Plaza (2nd Floor)

Main Road, Shaheb Bazar

Rajshahi.

Phone:(0721)775402,774661

E-mail: [email protected]

Bogra

Afsar Ali Complex(4th floor)

Borogola, Raja Bazar Road,

Bogra.

Phone : (051) 66940, 66860


Khulna

Dr. Gaffar Plaza (2 nd Floor)

Shaheb BazarRajshahi.

Phone :(0721)775402,774661


Barisal

Barisal Plaza (2nd floor)

Hemayet Uddin Road,Barisal.Phone : (0431) 64404E-mail : [email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]

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2.8Number of Employees of I CB:

Present

Personnel

1st class 2n class 3r class 4t class Total

Male 260 38 89 66 453

Female 48 09 15 05 77

Total 308 47 104 71 530

Figure1: Number of Employees of ICB.

0

50

100

150

200

250

300

1st Class2nd class

3ed class

260

3889

48

915

Male Female

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Directors

Kazi Safiqul Azam

Joint Secretary.Budget-1

Finance Division, Ministry Of Finance

Gokul Chandra Das

Joint Secretary (Administration)

Bank & Financial Institution Division

Ministry Of Finance

S.M. Moniruzzaman Executive Director

Bangladesh Bank

Dr. Md. Zillur Rahman

Managing Director,

Bangladesh Development Bank Ltd.

Pradip Kumar Dutta

CEO/MD

Sonali Bank Ltd.

Syed Abdul Hamid

Managing Director& CEO

Agroni Bank

S.M. Aminur Rahman

Managing Director& CEO

Janata Bank Ltd.

Md. Rezaul karim

Managing Director

Sadharan Bima Corporation

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2.10 Corporate Social Responsibi li ty:

ICB feels proud for its strong participation in the various CSR activities. In the financial year

2012-13, ICB contributed TK. 8.638 million to the following activities as:

Sponsored the 50 th anniversary celebration of Bangladesh Agricultural University,

Mymensingh.

Aided the faculty of business studies of Dhaka University for ICB- Dhaka University

Merit Awards and lecture series.

Contributed in Spectrum Engineering Consortium Limited under ICB- IT Support

(IISP) Program.

Sponsored the Bangladesh Olympic Association 2013 for 8 th Bangladesh Games.

Contributed to the victim of Rana Plaza Tragedy. Provided an important support to the institute of Bankers, Bangladesh (IBB) for

purchasing floor space under the CSR program.

Supported financially to the Gopalganj Zilla Samity and also to the Bangabandhu

Parishad of ICB.

Contributed to the computer Science and Engineering Dept. DU, Shanskrete dept.

DU.

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2.11 M anagement of I CB:

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 created in a board of

directors, which consists of persons including the chairman and managing director of ICB

The board of dir ectors consists of th e fol lowing dir ectors:

a) The Chairman to be appointed by the government.

b) The directors to be appointed by the government from among persons serving under the

government.

c) One director to be nominated by the Bangladesh Bank The managing directors,

Bangladesh Shilpa Bank, Ex-office.

d) The managing directors, Bangladesh Shilpa Rin Sangstha, Ex-office.

e) Four other directors to be elected by the shareholders other than the government, BB,

BSB and BSRS.

f) The managing director of ICB to be appointed by the government.

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2.12 Organizational H ierarchy of I CB:

The new organizational Hierarchy of ICB is shown below:

Figu

re 2:

Orga

nizat

ional

Hier

arch

y of

ICB.

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(e) Corporate Fi nancial Advice

Companies and Government enterprises intending to go public often seek professional &

financial advice on corporate restructuring & reengineering. ICB through its expertise provide

such services.

(f ) Bank Guarantee Scheme

ICB introduced Bank Guarantee scheme in 2002-03. ICB provides

(i) Bid Bond for enabling the business people to participate in any tender o bidding;

(ii) Performance Bond for helping the business community to continue their business smoothly

by fulfilling their obligations promised by them to their clients;

(iii) Customs Guarantee for solving different disagreements between the customs authority and

the business classes at the initial stage. The maximum limit guarantee in Tk. 20 million and

would be issued against at least 20 per cent cash and 80 percent easily cashable securities or

against 100 per cent cash margin. Re-guarantee from other financial institution is required for

guarantee against the amount exceeding Tk. 20 million.

(g) Consumer credit Scheme

As part of business diversification program ICB has introduced Consumer Credit Scheme2003-04 looking at the need of various household commodities of different professionals of

govt., semi-govt., autonomous bodies and some established private sector organization. Under

this scheme one can enjoy minimum of Tk. 0.10 million but maximum of Tk. 0.50 million credit

facilities. The rate of interest on the loan is reasonable and competitive.

(h) L ease Fi nancing

ICB provides lease finance mainly for machinery, equipment and transport. ICB is in a position

to provide professional advice and financial assistance to the intending clients. The period of

lease, rental, and charges and other terms and conditions are determined on the basis of type of

assets and the extent of assistance required by the applicants. Since introduction of this scheme

in 1999 good responses have been received from the intending lessees.

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(i ) T rustee to the debentur e and Secur i ties assets

ICB is acting as trustee to the debenture issue and asset-backed securitized bonds. ICB acted as

trustee to the issue of 17 companies of which 7 companies has been redeemed successfully.

(j) Investors Scheme

The Investors' Scheme was introduced in June 1977. Over the years this scheme has grown

tremendously. ICB, at its discretion, may grant up to two times loan against the assets of an

account subject to a maximum limit of Tk. 0.3 million. An account holder may use the combined

balance of his/her equities and loan to buy shares/securities. To help the investors to develop

diversified and balanced portfolio to minimize risk and earn a reasonable return.

(k) I CB Unit Fund

It is an open-end mutual fund scheme launched in April 1981, through which the small and

medium savers get opportunities to invest their savings in a balanced and relatively low risk

portfolio. ICB has so far declared attractive dividends on units every year ranging from Tk. 11.50

to Tk. 25.00 per unit. Investment in units enjoys tax benefits, amount being applicable as per

law. However, under the ICBs restructuring program new unit certificates are being solICBs subsidiary company, the ICB Asset Management Company Ltd.

(l) ICB M utual F und

ICB has so far floated eight closed end mutual funds. The First ICB Mutual fund was floatedon 25 April 1980, while the Eighth ICB Mutual Fund was floated on 23 July 1996. The

aggregate size of these funds is Tk. 175 million. Dividends declared on the funds were very

attractive ranging from 15.00 to 210.00 per certificate for 2003- 04. One can invest in such funds

through the stock exchanges with which these funds are listed. Through corporate restructuring,

new mutual fund s are being floated through ICB Asset Management Company Ltd. asubsidiary of ICB.

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(p) Bangladesh F und

The capital market has fallen in great crisis at the end of 2010 and gone to more instable position

by losing the trust of investors and shortage of liquidity to the money market. To make the

capital market stable, the Government of Bangladesh has taken some steps and directed ICB totake the initiative to develop the base of capital market. The Board of Directors of ICB approved

to Sponsor an open end Mutual Fund namely Bangladesh Fund , the initial size of the fund is

Tk. 50 billion divided into 0.50 billion units at par value of Tk. 100.00 (one hundred) each and

face value of the fund will be Tk. 100.00 (one hundred) per unit.

The main objective of the fund is to stabilize the capital market, long-term development of

capital market and increase the supply of liquidity to the money market.

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2.14 Organi zational Analysis:

The financial results and some key financial ratios of ICB pertaining to profitability, liqudity and

solvency are given in the following table:

Table - Statement of financial results & some key financial ratios

Financial Results 2012 -13 2011 -12 Increase/

Decrease(%)

Total Income(TK. in million) 8487.5 6683.5 26.99

Total Expenses(TK. in million) 4025.9 2196.7 83.28

Profit before provision(TK. in

million)

4161.6 4486.8 (0.56)

Provision made(TK. in million) 520.2 633.9 (17.63)

Net Profit(TK. in million) 3941.4 3852.9 2.30

Financial Ratios 2012 -13 2011 -12 Increase/ Decrease(%)

Net Profit to Total Income(%) 464.4 576.8 (19.49)

Return on Investment (%) 148.8 148.9 (0.07)

Return on Equity(%) 178.0 149.5 19.06

Earnings Per Share(Tk.) 1167.8 1142.3 2.23

Book value per share (Tk.) 6587.8 7668.3 (14.09)

Dividend yield (%) 25.1 13.3 88.72

Dividend Payout Ratio(%) 428.1 437.7 (2.19) Price earning ratio (times) 170.5 328.2 48.05

Current Ratio (Times) 1.31:1 1.51:1 -

Debt -Equity ratio 19.63:100 0.39:100 -

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2.14.1 Financial Result:

(a) Total Income

In 2012 -2013 ICB earned a total income of Tk. 8487.5 million as compared to Tk.6683.5 million

earned in 2011 -2012 showing an increased by 26.99 percent. The major heads of income ICB

were capital gain, dividend income, interest income and income from fees and commissions.

During 2012 -2013 income from all heads including interest income went up compared to those

of the previous year. Of the total income of Tk. 8487.5 million the highest income being the

capital gain of Tk. 4947.0 million (58.29 percent) followed by interest income of Tk. 2549.3

million (30.04 percent) dividend and interest income on securities of Tk. 698.8 million (8.23

percent) fees and commissions of Tk. 215.0 million (2.53 percent) and Tk, 31.7 million (0.04

percent) as income from other sources. Due to efficient management of portfolio and favourablemarket condition income from capital gain stood at Tk. 4947.0 million in 2012 -2013, which was

33.65 percent higher than the capital gain of Tk. 3705.0 million of the previous year. despite stiff

competetion at the market by dnt of prudential cash and fund management, though the

corporation earned gross interest income of Tk. 2549.3 million lower than that of previous year.

Dividend income increased by 36.18 percent in the reporting year compared to previous year due

to satisfactory dividend performance by the companies selected in the portfolio.

(b) Total Expenditure

During 2012 -13 The total expenditure of the corporation stodd at Tk.4546.1 million as compared

to Tk. 2830.5 million in 2011 -12 showing an increasing of 60.61 percent over the previous year.

The major heads of expenditures were interest expanse of Tk. 3650.6 million which was Tk.

1846.9 million in previous year, showing a increase by 97.66 percent. other operating expanses

was Tk. 370540 million compared to Tk. 349.7 millionin 2011-12, registering an increase by

7.33 percent higher than that of the previous year, it was lower than the budgeted amount.

During the year provision of Tk. 14.6 million was provided against loans and advances.

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(c) Gross Profit

The gross profit before provision and tax was Tk. 4461.6 million in 2012 -13 compared to Tk.

4486.8 million in 2011 -12, showing an increase of 0.56 percent lower than last year.

(d) Net Income

During 2012 -13, ICBs net profit after tax increased to Tk. 3941.4 million from Tk. 3852.9

million in 2011 -2012 showing an increase of 2.30 percent.

(e) Dividend

The board of director of ICB recommended cash dividend at the rate of Tk. 25.00 peer share and

stock dividend at the rate of 25:100 for 2012 -13. Cash dividend at the rate of Tk. 15.00 per share

and stock dividend at the rate of 35:100 were paid in the previous year.

(e) Appropriation of Profit

The board of director of ICB recommended appropriation of Tk. 4484.7 million which includes

net profit of Tk. 3941.4 million of 2012 -13 and retained profit of Tk. 543.3 million of the

previous year.

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2.14.2 Net Profi t to total Income ratio:

In business, Net income also referred to as the bottom line, net profit, or net earnings is an

entity's income minus expenses for an accounting period.It is computed as the residual of all

revenues and gains over all expenses and losses for the period, and has also been defined as the

net increase in stockholder's equity that results from a company's operations. In the context of the

presentation of financial statements, the IFRS Foundation defines net income as synonymous

with profit and loss.

Net Profit to total Income = Net profit / Total Income

= 3,941,435,945/8,487,500,000

= 46.44%

Total Income & Net Profit

Figure 3: Chart of total income and net profit.

5276.26683.5

8487.5

3130.4

3855.2

3941.4

0

200

400

600

800

1000

1200

1400

2010-2011 2011-2012 2012-2013

Net Profit Total IncomeFinancial Year

Taka

in million

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2.14.4 Earni ngs per share (EPS):

Earnings per share (EPS) are the amount of earnings per each outstanding share of a company's

stock.

EPS = Net Profit / No. of share outstanding

= 3,941,435,945/33,750,000

= 116.78 (Tk.)

Earnings per share (EPS)

Figure 5: Diagram of Earning per Share.

2.14.5 Priceearn in gs ratio:

In stock trading, the P/E ratio (price-to-earnings ratio) of a share is the ratio of the market price

of that share divided by the annual Earnings per Share (EPS).

P/E ratio = Market price per share / EPS

= 1,991.25 / 116.78

= 17.05 (times)

At the 28 june 2013 Market price was TK. 1991.25

2010-2011,106.52

2011-2012,114.16

2012 - 2013, 116.78

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2.14.6 Book value per share:

Book Value per Shareis a recalculation of book value, wherein the total book value is divided by

the number of shares outstanding. This number is particularly useful in quickly calculating the

price to book ratio.

The book value per share formula is used to calculate the per share value of a company based on

its equity available to shareholders. The term "book value" is a company's assets minus its

liabilities and is sometimes referred to as stockholder's equity, owner's equity, shareholder's

equity, or simply equity.

Book value per share = Total Equity / NO. of outstanding shares

= 22,140,827,829/33,750,000

= 656.02 (Tk.)

Figure 6: Book value per Share.

2010-11,939.4

2011-12,1035.23

2012-13, 656.02

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2.14.7 Total I ncome and Net Profi t after Tax:

Figure 7: Total profit & net Profit after Tax.

2418.7

4370.1

3642.1

5276.2

6683.5

8487.5

302.3

1011.9 1116.3

3130.4

3852.9 3941.4

0

100

200

300

400

500

600

700

800

900

2007-8 2008-9 2009-10 2010-11 2011-12 2012-13

Total Income Net Profit af ter Tax

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Chapter: 3

Task done by

me at ICB

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3.1 Actual Task part:

In the period of my two months internship program, I have got a position and some duties in

Investment Corporation of Bangladesh. My observation and responsibilities are visiting all the

department of Investment Corporation of Bangladesh. From October 23, 2014 to December 28,

2014 I was working under the supervision of Uddipta Shahin Parag s who is the Senior Officer

of Manager of Human resource management department at Investment Corporation of

Bangladesh (Head Office).

On that time I learned many things about the various departments of Investment Corporation of

Bangladesh. Sometime I also worked as a data entry operator and many things.

3.2 Task Area:

In ICB my position is as an intern at all Department of ICB (Mainly the Human ResourceManagement Department). The hierarchy is given below;

Figure 8: Task Area

JBL

ICB

(GM AdminSecretariat)

Trustee Div.

Trustee Deptt.

Custodian Deptt.

Legal Affairs Div.

Law Deptt.

Documentationdeptt.

Establishment Div.

Real Estate Deptt.

Procur & CommonService Deptt.

Administration Div.

Human resourceManagementDepartment

My Position

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3.4 Visited Depar tment:

During my internship I have visited several department of ICB. Since I am an intern, so authority

gave me the permission to visit every department. My mission is to talk with them and collect the

information about the current condition of ICB and also the mutual funds of ICB. The following

departments listed are given below.

The Division wise various departments of ICB are given below:

Sl no. Division Departments Departmental Heads

1. Administration 1.Human Resource Management

2. Discipline grievance & appeal3. pension & welfare

Mr. Nuruzzaman Khan

HRM Department

Mrs. Ruksana Yasmin

Discipline, Grievance And Appeal

Dept. & Pension And Welfare

Department (Jointly)

2. Establishment 1. Procurement & service

2. Real state.

Mr. Helaluddin Ahmed

Procurement & Common Service

DepartmentMr. Md. Golam Mostofa

Real Estate Department

3. Secretaries 1. Secretaries

2. Public Relation.

Mr. Md. Al Amin Talukder

Secretary`s Department

Mr. Md. Anwar Shamim

Public Relations Department

4. Legal Affairs 1. Documentation

2. Law.

Mr. Md. Golam Rabbani

Documentation Department

Mr. Md. Noor Hossain Dhaly

Law Department

5. Planning 1. Planning Research & Business Mr. Md. Shariqul Anam

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&Research Development.

2. Portfolio Management.

PRBD Department

Mr. A.S.M. Haidaruzzaman

Portfolio Management Department

6. Accounts 1.Cental Accounts

2. Loan Accounts.

Mr. Mohammad Zaker Hossain

Central Accounts Department

Mr. Younus Chowdhury

Loan Accounts Department

7. Budget 1. Fund Management.

2. Budget & Risk Management.

Mr. Abu Taher Mohammad

Ahmedur Rahman

Fund Management Department

Mr. Mazeda Khatun

Budget And Risk Management

Department

8. Hardware &

Communication

1. Hardware & Communication

2. Data Administration & MIS

Mr. Md. Mofizur Rahman

Data Admin And Mis Department

& Hardware And Communication

Department (Jointly)

9. Software 1. Programming.2. System Analysis.

Mr.Md Enaitur Rahman

Mr. SK. Aslam Uddin

System Analysis Depertmen

10. Internal Control

& Complains

1. Audit.

2. Organization & methods.

3. Inspection & Complains.

Mr. Gazi Mustafa Haque

Audit Department

11. Trusty 1. Trusty

2. Custodian.

Mr. Md. Abdul Hoque

Trustee Department

Mr. Md. Ahia Mondal

Custodian Department

12. Credit 1. Appraisal.

2. Leasing.

Mrs. Parveen Sultana

Leasing Dept & Lien and General

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3. Leanne & General Credit. Credit Department(Jointly)

13. Merchandise 1. Investors.

2. Banker to the Issue.

Mr. Md. Shafiul Alam

Investors Department

Mr. Syed Mahamud Ahmed

Banker To The Issue Department

14. Depository 1. Share.

2. Securities Reconciliation.

Mr. Md. Serajul Huq

Shares Department

Mrs. Noorjahan Begum

Securities Reconciliation

Department

15. Implementation &

Recovery

1. Implementation

2. Recovery.

Mr. Md. Nazrul Islam

Implementation Department

Mr. Md. Rafiqul Islam

Recovery Department

16. EEF

Administration

1. EEF Administration

2. EEF Audit & Accounts

Mr. Md. Rafiqul Islam

EEF AdminDepartment & EEF

Audit And Accounts Department

(Jointly)

17. EEF Recovery &Legal Affairs

1. EEF Implementation &Recovery

2. EEF Legal Affairs.

Mr. Md. Rafique Ullah EEF Leagl Affairs Department

18. EEF Appraisal 1. EEF Agro.

2. EEF Non-Agro.

Mr. Provash Ranjon Roy

EEF Non Agro Department

19. Branch Affairs 1. Branch Affairs-1

2. Branch Affairs-2

Mr. Mujibur Rahman Khan

Branch Affairs Department-1 & 2

(Jointly)

20. Subsidiaries

Affairs

1. Subsidiaries Affairs-1

2. Subsidiaries Affairs-2

Mrs. Shukla Das

Subsidiary Affairs Department-1 &

2 (Jointly)

21. Mutual Fund 1. Unit Fund

2. Mutual Fund

Mr. Trailakshya Roy

Unit Fund Department

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Mr .A. L. M. Shahnawaze

22. ICB Securities Trading Company Ltd.

23. ICB Asset Management Company Ltd.

24. ICB Capital Management Company Ltd.

25. ICB Asset Reconstruction.

3.5 Observe the fu nction of the department:

I have no particular post in ICB. So my duty is to observe what are the functions of various

departments are and how they control everything. By the help of my supervisor, I am able to

know the function and fitted me in this situation and also collect information which will be

necessary to make my brilliant professional life. Those are given below.

Human Resource Management Department:

Appoints the manpower in the corporation. Handling all personal matters including confirmation, posting, transfer, fixation leave etc. Processing of all promotion and retirement.

Controlling of attendance. Transfer, selects the salary, pension vacation, promotion, confirm the job, etc are the

personnel related works.

Processing the promotion, time scale, vacation related works. Processing the retirement. To maintain the national salary scale, select the salary, pension, increasing the annual

salary etc.

Arrange training for the employee both in home and abroad. Maintaining liaison with ICB employeesunions.

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Di scipli ne, gri evance & appeal Department:

Make necessary rules, regulation & policies for efficient administration of the

corporation.

Taking action against the employee who gradually violets the rules & regulation of the

corporation.

Maintaining all types of disciplinary action of the corporation. For making a well-trained administration must me selected the rules and regulation. Function of personnel discipline. Take short term and long term development planning for the executive of a corporation. Maintained the relation with the ministry. Functions which are all related with the officers union.

Pension & welf are Department:

Dealing retirement benefits i.e. gratuity, pension, provident fund etc. Determine corporations employees pension and gratuity Monthly pension payment Pension holders medical alliance define Future fund fee collection and reserve Invest pension fund in a profitable field Savings welfare accounts Policy Formulation/ Framing of Rules Interpretation of policy/ rules Relaxation of rules in individuals cases Exemption from rules Facilitating Redressed of grievances

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Procur ement & service Depar tment:

This department deals with purchase and sales office supplies, office equipments etc. Maintain the utility service like telephone bill, electric bill etc. Examine the quality of the product purchase. They also gave tender offer to the supplier or buyer for the purchase or sale of the scrapes

and wastage.

Secretary' s Department:

Arranging meeting of board of directors Executive Committee and other committee Placing working papers to the Boards of Director Maintaining attendance register of directors.

Obtaining signature of the chairman on the minutes book. Collect and send any action needed to approve or implement Maintaining register of shareholders of the company. Making payments of dividend to the shareholders. Arranging of Annual General Meeting

Publ ic Relati on Department:

Maintain the close relation with the ministry of Finance & other concern. Help publishing all types of official advertisement. Help focusing ICB through mass-media. Publish internal newsletter or journal etc.

L aw Department:

This department handles all the legal affair of ICB. Prepare legal documents, advance agreements, share agreements, demand promissory

notes, memorandum etc.

Process litigation cases, prepare legal notice and refer cases to legal advises and

coordinate with legal adviser in the court.

Prepare necessary memos for placement in the board meeting relating litigation & legal

affair.

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b) I nvestors Portfoli o Section The purchase of shares in the investors accounts. Receives shares from the transaction department for preservation. Send shares and. debentures at the time of book closure for making, registration in the

name of the particulars investors.

Receives shares and debenture from the companies after registration Collect bonus or right shares and allocate to accounts accordingly.

c) Sale and Wi thdrawal Section Receive sale and withdrawal order from the investors department. Examine the actual existence of securities and to get out of the same from the volt.

Give information to the computer department about salability of the Securities. Making arrangement for the signature of attorney & filling up of 117 forms. Send the securities to the investor department in case of withdrawal.

d) Di vidend coll ection Section Procurement of dividend and interest declared by the different companies

Unit Sales Department:

Act as manager of unit fund. Sell and issue unit certificate to the applicant. Repurchase unit certificate. Co-ordinate activities of Bank Branches in respect of unit sale and repurchase. Determine sale and repurchase prices of unit certificate it to Bank Branches and ICB

Branches.

Spilt and consolidate unit certificates is as requested by unit holders.

Issues and distributes Cumulative investment plan (CIP) Certificates. Cancellation of surrender certificate.

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Unit r egistration and procur ement department:

Register and transfer unit certificates Maintain separate register for unit holder CIP Verify signature of transfer deed Issuance dividend warrants and CIP c-Certificates to the holders. ICB Branches and Bank Branches as per requirement Coordinate all activities relating to procurement and issue of unit certificates.

M utual F unds Department:

Act as manager of all mutual funds. Prepare prospectus in connection with the floatation of mutual funds.

Receive applications form the general public in respect of new issues of mutual fund. Scrutinize the applications for allotment Of Shares against applications made. Arrange for lottery if necessary for allotment. Issue allotment letters/share certificates. Arrange refund of excess application money. Effect transfer and registration of certificates Issue dividend warrants to the holders of the certificates. Make correspondences with the branches of the Corporation, Banks and Certificate

holders.

Centr al A ccounts Department:

Preparation of salary statements, overtime Statement. Maintaining liaison with commercial audit and external audit. Preparation of annual budget and revise it as per requirement. Preparation of Financial Statement of the corporation.

Arranging call loan & term deposit.

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Computer Department:

Maintaining the network system. Developing new software. Servicing of hardware & Software troubleshooting. Maintaining bulk amount of data. Providing assistance to the officials for being efficient Computer use.

L oan Appraisal Department:

Receiving application from the entrepreneurs. Appraise the proposed project. Submit the appraisal report to the board and consortium.

Visit the project and make a feasibility, study on the proposed project.

Bu siness Development Cell :

Introduce new financial products. Maintaining liaison, with SADF. Provide creative ideas to diversify the business.

Project I mplementation Department:

Disbursement of loan as per sanctioned. Monitor the progress of the project. Provide counseling, for solution of any dispute and problems. Recommend for more loan if project need thereafter.

Recovery & F oll ow up Department:

Measures operational performance.

Meet the sponsors as the recovery would be smooth. Identifying the sick project and restructure them. Assist law department in case of default.

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Private Placements:

ICB is authorized to act as an agent of the issuers and investors for private placements of

securities. Under this arrangement, ICB places securities to individuals/institutions on behalf of

the issuer for which it charges fees. ICB also acquires shares/securities for its own portfolio both

in pre-IPO placement and equity investment.

Underwriting:

In order to raise long-term equity from the primary market, the government bodies,

enterprises, corporations or companies may seek intermediary assistance from ICB in the form of

underwriting. Because of its long and proven experience, reputation, asset back up and

established network of regional offices, ICB is an excellence position to attract the potential

investors to the proposed issue of shares, debentures and other securities for successful floatationof IPO and placement.

Custodian and Banker to the I ssues:

To act as the custodian to the public issue of Open-end & Closed-ended Mutual Funds,

ICB provides professional services. It also acts as the Banker to the issues and provides similar

services through the network of its branches.

M ergers and Acquisiti ons:

Companies willing to expand their business through mergers or acquisitions or to divest

projects that no longer fit into present scale of operation contact the Corporation. ICB provides

professional services & advice in respect of shaping up the cost and financial structures to ensure

best possible operational results. Besides, in case of divestment, the corporation, through

network and established business relationship, bring buyers and sellers together, help them

negotiate final agreement and advice on the emerging corporate structure.

Corporate Fi nancial A dvice:

Companies and Government enterprises intending to go public often seek professional &

financial advice on corporate restructuring & reengineering. ICB through its expertise provide

such services.

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Ban k Guarantee Scheme:

As part of ICB s, business diversification programs, the corporation introduced bank guarantee

scheme during the year 2002-2003. ICB provides:

i) Bid Bond for enabling the business people to participate in any tender or bidding.

ii) Performance Bond for helping the business community to continue the business

smoothly by fulfilling their obligations promised by them to their clients

iii) Customs Guarantee for solving different disagreements between the customs authority

and the business classes at the initial stage. The maximum limit of guarantee is Tk. 20

million and would be issued against at least 20% cash and 80% securities that can be

easily liquidated or against100% cash margin. Re-guarantee from other financial

institution is required for guarantee against the amount exceeding Tk. 20 million.

I CB Unit Fund:

It is an open-end mutual fund scheme launched in April 1981, through which the small

and medium savers get opportunities to invest their savings in a balanced and relatively low risk

portfolio. ICB has so far declared attractive dividends on units every year ranging from Tk. 11.50

to Tk. 25.00 per unit. Investment in units enjoys tax benefits, amount being applicable as per

law. However, under the ICB s restructuring program new unit certificates are being sold by

ICB s subsidiary company, the ICB Asset Management Company Ltd.

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Subsidi ari es Company of I CB:

I CB Securi ties Tr ading Company Ltd. (I STCL ):

ICB Securities Trading Company Limited (ISTCL) is a subsidiary of Investment Corporation of

Bangladesh (ICB) under the provisions contained in Section-2 of the Companies Act, 1994. It

was formed as a part of the restructuring programmer of ICB under Capital Market Development

programmer (CMDP) initiated by the Govt. of Bangladesh (GOB) and the Asian Development

Bank (ADB) and in terms of power conferred in the ICB Ordinance. The company was

incorporated with the Registrar of Joint Stock Companies and Firms under the Companies Act

1994 on 05 December 2000. The company obtained license from the Securities and Exchange

Commission on 12 August 2002 to carry on the stock brokerage business. The company started

its operation on 13 August 2002 upon the issuance of gazette notifications by the Government.

The company is being operated pursuant to its own Memorandum and Articles of Associations,

SEC's Rules and regulation and other applicable laws. It has independent Board of Directors and

separate management.

I CB Asset M anagement Company L td. (IA M CL):

ICB Asset Management Company Ltd. was established as part of the restructuring program me

of ICB under Capital Market Development Programmed (CMDP) initiated by the Government of

Bangladesh and the Asian Development Bank. The Company was incorporated as a public

limited company with an authorized capital of Tk. 1000 million and a nominal paid up capital of

Tk. 0.20 million, which was subsequently increased to Tk. 120.0 million, under the Companies

Act, 1994 with the Registrar of Joint Stock Companies and Firms on December 05, 2000. The

Company obtained license on October 14, 2001 from the Securities and Exchange Commission

(SEC) under to carry out the mutual fund activities. The company started its operation from July

01, 2002 upon issuance of Govt. gazette notification.

The company is engaged in investment management; more specifically floating and managing

both open-end and closed end mutual funds. The company is dedicated towards development of

mutual fund industry as well as the capital market of Bangladesh.

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I CB Capital M anagement L imited (I CML ):

Underwriting

In order to raise long term debt and equity from the primary market, the Government bodies,Enterprises Corporation or companies may seek intermediary assistance from ICML in the form

of underwriting.

I ssue Management

To act as the manager to the issue of shares and debentures, ICML provides professional services

in respect of syndicate underwriters and bankers to the issue. Besides, it also helps in preparing

prospectus, getting their approval from SEC and arranges publication of the same.

Placement of Shares

ICML acts as a placement agent.

I nvestment Coun seli ng

ICML provides investment counsel to the issuers and investors' including financial engineering

and corporate advisory services.

M anaging Investment Accounts

ICML, at its discretion, may grant loan at a ratio of 1:1 against the assets of an account subject to

a maximum limit of Tk.2.5 million. An accountholder may use the combined balance of his/her

equities and loan to buy shares/securities. To help the investors to develop diversified and

balanced portfolio to minimize risk and earn a reasonable return. ICML provides professional

advice and other support services.

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3.6 Commencement of operati ons of th e Subsidi ary Compan ies:

Formation & Registration of Three Subsidiary Companies 5 December 2000

ICB Capital Management Ltd. 1 July 2002

ICB Asset Management Company Ltd. 1 July 2002

ICB Securities Trading Company Ltd. 13 August 2002

Registration as a Trustee with SEC 20 August 2002

Registration as a Custodian with SEC 20 August 2002

Bank Guarantee Scheme 21 June 2003

Advance Against ICB Mutual Fund /ICB AMCL Unit Certificates

Scheme

21 June 2003

Consumer Credit Scheme 15 February 2004

Venture Capital Financing Scheme 26 April 2007

Purchase of own Land (Agargoan) 3 March 2008

Equity and Entrepreneurship Fund (EEF) 1 June 2009

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3.7 Perf ormance Evaluation of I CB M utual F unds:

Thus my Report topic is Performance Evaluation of ICB mutual funds . So before going to performance and evaluation part of ICB mutual funds, I write some important part of ICB mutual

funds and its activities.

3.7.1 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 Exchangesthrough interaction of supply and demand.

3.7.2 Types of Mutual Fund:

Any Mutual Fund could be of either of the following two kinds

Open-end Mutual Fund Close-end Mutual Fund

3.7.2.1 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.

3.7.2.2 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 funds and cannot sell more shares after its initial

offering. It s growths in terms of number of shares are issued like any other companys nissues listed and quoted it stock exchange.

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3.7.3Objective 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.

3.7.4Advantages 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 aswell 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.

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3.8 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 million)

First ICB Mutual Fund 25 April,1980 7.50

Second ICB Mutual Fund 17 June,1984 5.00

Third ICB Mutual Fund 19 May,1985 10.00

Fourth ICB Mutual Fund 6 June, 1986 10.00

Fifth ICB Mutual Fund 8 June, 1987 15.00

Sixth ICB Mutual Fund 16 May,1988 50.00

Seven ICB Mutual Fund 30 June,1995 30.00

Eighth ICB Mutual Fund 23 July,1996 50.00

Source: Annual Report of ICB Mutual Fund 2012-13.

From the table we can see that, launching date 16 may 1988 and 23 July 1996, 6 th and 8 th ICB

Mutual fund paid up capital is high (50 million). The lunching date 17 June 1984 Second ICB

mutual fund paid up capital is low (5 million).

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3.9 Operati onal Resul t:

Table no. Net income for the year, distributable income per certificate, ex-dividend intrinsic

value per certificate.

Name of the fund Net income for the

year 2012-13 (Taka)

Distributable

income per

certificate as on 30

June 2013(TK)

Ex-dividend

net asset value

per

certificate(TK)

1st ICB Mutual Fund 75.63 161.71 872.30

2secon ICB Mutual Fund 44.10 90.14 215.61

3r ICB Mutual Fund 26.16 61.55 211.16

4t ICB Mutual Fund 29.24 66.33 205.24

5t ICB Mutual Fund 23.45 46.79 168.92

6t ICB Mutual Fund 10.99 20.53 49.64

7t ICB Mutual Fund 13.53 29.87 86.60

8t ICB Mutual Fund 12.47 25.99 59.09

Source: Annual report of ICB mutual funds 2012-13.

From the above table we can see that, during the period 2012-13, net income 1 st mutual fund is

high and low 6 th ICB mutual fund. The distributable income per certificate and Ex-dividend Net

asset value per certificate is high of ICB 1 st Mutual Fund and 6 th& 8 th Mutual fund is low.

3.10 Detail ed description of I CB mutual funds:

ICB is the pioneer organization of initiating mutual fund in BD. The countrys first fund, theFirst ICB Mutual Fund was lunched on 25April 1980.Since then ICB had floated 8 Mutualfunds of total capital of TK. 175.0 million up to investors as a rewarding and relatively safe

investment instrument because of their strong and steady performance in terms of dividend and

portfolio management.

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3.10.1 F ir st I CB M utual Fu nd

The 1 st ICB Mutual Fund was floated at 25 th April, 1980, under regulation 29 A of ICB (General)

Regulation with a total capital of TK. 50,000 certificates of TK. 100 each. It is the most

attractive mutual fund among the others.

Dividend and Interest income:

The Fund had earned an amount of TK. 12.439 million as dividend from investment of securities

of 78 companies during 2012-13 of which a sum of TK. 7.607 million (61.16 %) received in cash

within 30 June 2013.

Capital Gains on Sale of I nvestments :

During 2012-13, the fund has earned TK. 46.091 million as capital gain against TK. 57.108

million earned during 2011-2012 by selling securities of 31 companies.

I ncome, expense and distr ibutabl e in come:

During the year under review, the fund has earned a gross income of TK. 60.821 million by way

of dividend and interest income from investment of shares and debentures/bonds amounting of

TK. 12.439 million, TK. 2.291 million as interest on bank deposits, TK. 46.091 million as capital

gains and other income. After deducting the total expense of TK. 4.095 million incurred as staffexpense, interest on current account with ICB, management fee, printing and stationary, postage

and telegram, bank charges, provision against investment and other expense the net income of

the fund stood at TK. 56.725 million.

Dividend:

The declared dividend at the rate of 700.00 percent against each certificate of TK. 10.00 which

was 600.00 % in the previous year. After making provision of TK. 52.500 million for payment of

dividend the fund had an undistributed income of TK. 68.785 million.

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Dividend performance of ICB Mutual Fund:

Table; Year wise dividend performance

Name of the fund Financial year

First ICB Mutual fund 2008-9

(TK)

2009-10

(TK)

2010-11

(TK)

2011-12

(TK)

2012-13

(TK)

310.00 400.00 500.00 600.00 700.00

Source: Annual report of ICB Mutual Funds 2012-13.

From the table we can see that, First ICB mutual fund dividend performance (2012-13) is high

(TK.700) and (2008-9) is low (TK.310).

Portfolio:

During 2012-13 the fund investment TK. 59.537 million in securities of different sectors. As on

30 June 2013 the fund had securities of 131 companies and 23 mutual funds in its portfolio with

a total cost of TK. 161.049 million, the market value of which was TK. 737.715 million.

The Ex-dividend net asset value per certificate of TK. 10.00 each of First ICB mutual fund stood

at TK. 872.30 as on 30 June 2013.

At DSE the opening and closing market price per certificate of First mutual fund of TK. 10.00

each was TK. 879.00 and TK. 932.00 respectively in 2012-2013.

The number of certificate holders of the fund was 815 as on 30 June 2013.

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3.10.2 Second I CB M utual F und

The Second ICB Mutual Fund was established in June 1984, under regulation 29 A of ICB

(General) Regulation with a total capital of TK. 50,00000dividend into 50000 certificates of TK.

100 each. The manager of the fund is vested with ICB.



of 75 companies during 2012-13 of which a sum of TK. 4.312 million (91.37 %) was received in

cash within 30 June 2013.




I ncome, expense and distri butabl e in come:




gains and other income. After deducting the total expense of TK. 3.094million incurred as staffexpense, interest on current account with ICB, management fee, printing and stationary, postage



Dividend:




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Second ICB Mutual

fund

2008-9

(TK)

2009-10

(TK)

2010-11

(TK)

2011-12

(TK)

2012-13

(TK)

95.00 200.00 250.00 300.00 375.00


From the table we can see that, Second ICB mutual fund dividend performance (2012-13) is high

(TK.375.00) and (2008-9) is low (TK.95).

Portfolio:

During 2012-13 the fund has made investment of TK. 40.865 million in securities of different

sectors. As on 30 June 2013 the fund had securities of 132 companies and 22 mutual funds in its

portfolio with a total cost of TK. 97.567 million, the market value of which was TK. 173.382

million.

The Ex-dividend net asset value per certificate of TK. 10.00 each of Second ICB mutual fund

stood at TK. 215.61 as on 30 June 2013.

At DSE the opening and closing market price per certificate of Second mutual fund of TK. 10.00



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3.10.3 Thi rd I CB M utual F und

The third ICB Mutual Fund was established in May 1985, under regulation 29 A of ICB

(General) Regulation with a total capital of TK. 100,00,000dividends into 1,00,000 certificates of

TK. 100 each. The manager of the fund is vested with ICB.


The Fund has earned an amount of TK. 5.036 million as dividend and interest from investment of

securities of 80 companies during 2012-13 of which, TK. 4.280 million (84.99 %) was received

in cash within 30 June 2013.


During 2012-13, the fund has earned TK. 21.056 million as capital gain against TK.

20.673million earned during 2011-2012 by selling securities of 19 companies.







the fund stood at TK. 26.161 million. Fund has net distributable total income of TK. 61.550

million and per certificate income of TK. 61.55 as on June 2013.

Dividend:




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Dividend perf ormance of I CB M utual F und:



Third ICB Mutual fund 2008-9

(TK)

2009-10

(TK)

2010-11

(TK)

2011-12

(TK)

2012-13

(TK)

85.00 140.00 185.00 200.00 240.00


From the table we can see that, Third ICB mutual fund dividend performance (2012-13) is high

(TK.240.00) and (2008-9) is low (TK.85.00).

Portfolio:




million.

The Ex-dividend net asset value per certificate of TK. 10.00 each of ThirdICB mutual fund


During 2012-13, the opening and closing market price per certificate of Third ICB mutual fund

of TK. 10.00 each was TK. 145.00 and TK. 208.90 respectively in DSE. The number of

certificate holders of the fund was 1202 as on 30 June 2013.

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Dividend perf ormance of I CB M utual F und:



Fourth ICB Mutual

fund

2008-9

(TK)

2009-10

(TK)

2010-11

(TK)

2011-12

(TK)

2012-13

(TK)

80.00 125.00 165.00 185.00 240.00


From the table we can see that, Fourth ICB mutual fund dividend performance (2012-13) is high

(TK.240.00) and (2008-9) is low (TK.80.00).

Portfolio:




million.

The Ex-dividend net asset value per certificate of TK. 10.00 each of Fourth ICB mutual fund


At DSE the opening and closing market price per certificate of fourth ICB mutual fund of TK.

10.00 each was TK. 141.50 and TK. 200.00 respectively in 2012-2013.


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3.10.5 F if th I CB Mu tual Fund:

The Fifth ICB Mutual Fund was established in June 1987, under regulation 29 A of ICB

(General) Regulation with a total capital of TK. 15,000,000dividend into 1, 50,000 certificates of

TK. 100 each. The manager of the fund is vested with ICB.


The Fund has earned an amount of TK. 8.206 million as dividend from investment of securities













Dividend:




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Dividend performance of ICB Mutual Fund :



Fifth ICB Mutual fund 2008-9

(TK)

2009-10

(TK)

2010-11

(TK)

2011-12

(TK)

2012-13

(TK)

56.00 100.00 135.00 170.00 200.00



(TK.200.00) and (2008-9) is low (TK.56.00).

Portfolio:




million.

The Ex-dividend net asset value per certificate of TK. 10.00 each of Second ICB mutual fund


At DSE the opening and closing market price per certificate of Second mutual fund of TK. 10.00



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3.10.6 Sixth I CB M utual F und:

The Sixth ICB Mutual Fund was established in May 1988, under regulation 29 A of ICB

(General) Regulation with a total capital of TK. 50,000,000 dividend into 5, 00,000 certificates

of TK. 100 each. The manager of the fund is vested with ICB.















Dividend:




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Second ICB Mutual

fund

2008-9

(TK)

2009-10

(TK)

2010-11

(TK)

2011-12

(TK)

2012-13

(TK)

37.00 75.00 90.00 100.00 105.00



(TK.105.00) and (2008-9) is low (TK.37.00).

Portfolio:




million.

The Ex-dividend net asset value per certificate of TK. 10.00 each of SixthICB mutualfunds stood

at TK. 49.64 as on 30 June 2013.

At DSE the opening and closing market price per certificate of Sixth ICB mutual fund of TK.

10.00 each was TK. 49.90 and TK. 61.30 respectively in 2012-2013.


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3.10.7 Seventh I CB M utual F und:

The Seventh ICB Mutual Fund was established in June 1995, under regulation 29 A of ICB

(General) Regulation with a total capital of TK. 30,000,000dividend into 300000 certificates of

TK. 100 each.



of 95 companies during 2012-13 of which a sum of TK. 6.728 million (88 %) was received in












Dividend:

The declared dividend at the rate of 120.00 perc

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Chapter !111111!