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Chapter-1

Introduction

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1.1 Background of the Study:
In accordance with the industrialization in Bangladesh, entrepreneurship development
and investment decision, the author was placed in Investment Corporation of Bangladesh
(ICB) for internship to analyze activity of ICB. In Bangladesh, problem of active
participation of medium and small server in investment do not organize properly. So,
financial institutions cannot accelerate the wheel of the industry as by expectation. On
the other hand, medium and small server is increasing. So there is a strong distinction
participation in the capital market by the financial institutions, and help to judge
investment decision critically. Mutual funds were established as an important part of the
ICB. ICB has played a pioneering role in the development of close-ended Mutual Funds
in Bangladesh. Mutual fund such a fund which is formed as a trust and whose objective
is to collect money from people by selling unit certificate one or more scheme and
invests its fund in a diversified portfolio of stock, bonds and securities.

But there are some problems in the mutual funds management. These problems need to
be solved and to solve the problems it is necessary to find out them first. This report will
help to explore the problems. To the end of the report some recommendation will be
presented to overcome the problems of the problems of operation and management of
ICBs mutual fund.

1.2 Rationale of the study:


The study has been conducted to identify how ICB is performing in the three major
functional areas and in the same time how contribution it has in the development of the
capital market. The study has also assessed whether the other financial organizations and
the individual investors are benefited by its performance. Meanwhile, the study has also
assessed how much contribution it has in creating the bases of investment and
mobilization of savings as part of its commitment. Finally, the study has reflected how
ICB is contributing to the financial market by its functions and activities. The topic is
fixed. The report specially covered the current performance of ICBs mutual fund. This
report has also mentioned some problems of ICBs mutual fund and its solutions. The
empirical part includes only the published information and current practices of the
Investment Corporation of Bangladesh.

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1.3 Objectives of the Report:
A. Board Objective:
The board objective of the report is to evaluate the comparative Analysis of Financial
Performance of ICBs Mutual Funds

B. Specific Objectives:
To gain Knowledge about the different functions performed by different
departments of ICB.
To know how ICB floats and manage the mutual funds.
To explore the problems of ICBs mutual fund operation.
To evaluate the performance of different mutual funds.
To Provide Recommendation.

1.4 Scope of the Study:


The scope of the report was basically the operations and practices of Investment
Corporation of Bangladesh. The scope of the study was in the organization, Investment
Corporation of Bangladesh (ICB). 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.

1.5 Limitations of the Report:


Limitations are obvious in any study so do here. Since this is an internship report, the
limitations regarding the internship program have acted as the limitations of the study.
Among others the main limitations are:
I had to go to almost every Department of ICB as part of the internship program.
There is a very short span of time to get in-depth knowledge about a massive
organization like ICB.

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Officials of ICB maintain a very busy schedule. So they were not always able to
provide enough time to enlighten the internee students every time, even if they
had the intention to do so.
The area covered by the report A comparative Analysis of Financial
Performance of ICBs Mutual Funds concerns a huge number of activities, and it
is very difficult to sketch a total picture of the financial activities in a report of
this scale.
In spite all these limitations we have tried to put in our efforts as far as possible

1.6 Methodology of the Report:


Methodology can be termed as underlying principles and rules of organization or the
philosophical systems that work at the backdrop of any study. It clarifies the problems
involving the research in a very ordered and systematic fashion. Strategic are determined
at this stage for future implementation. In this report decisions and calculations have
been made basing on past experiences and the available data of past activities. These data
can be collected in any one or more of the following ways.
Approaches and the methods that have been used to prepare the report arc as follows:

Personal Interview: I interviewed some departmental officials especially those


related to the financial operations of ICB.

Briefing sessions: Departmental heads or their approved officials gave briefs about
their respective departments. Information gathered from these sessions has been used in
this report.

Selection of the sample: The sample area of this report covers the head office of
ICB and mutual fund department since the central financial activities arc done under the
surveillance of the head office of ICB the selection of sample of this study is justifiable.
Data collected from the different divisions of ICB are all equally important segments of
sample used in this study. ICB as a national investment institution has added a huge
tempo in developing the capital market of Bangladesh. As a result of this importance the
selection of ICB as the sample area of this study is presumably the demand of the time.

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Chapter-2
Overview of Investment
Corporation of Bangladesh (ICB)

2.1 Background of ICB:

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"The Investment Corporation of Bangladesh (ICB) was established on 1 October 1976,
under "The Investment Corporation of Bangladesh Ordinance, 1976" (no. XL of 1976).
The establishment of ICB was a major step in a series of measures undertaken 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 under ICB.

2.2 Vision
We will continue to be the leading, responsible and environment friendly financial
institution operating in such a way that our fellow competitors and the society watch,
acknowledge, admire and emulate us as a successful and model organization in the
sector.

2.3 Mission
Transforming Corporation into a responsible institution, a financial architect, an
innovative solution provider and performance leader.
Being a responsible institution created by law and act in accordance with the
mandates ICBs ordinance for fostering rapid growth of Bangladesh economy.
Being a financial architect and strive to establish a benchmark of values,
attitudes, behavior and commitments with earnest endeavors in generating
optimum profits and growth for our shareholders by efficient use of resources.
Being an innovative solution provider and put emphasis on formulating total
solutions to foster mobilization of all domestic and NRB savings into potential
investments.
Being a performance leader and lead by example.

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2.4 Strategic Objectives of ICB
2.4.1 Priority Strategy
Focus on the fulfillment of the Country's priorities and objectives and
delivery of a beneficial outcome in the public interest.
Contribute within the area of professional competence to the economic
growth of the country, develop the capital market, mobilize savings,
encourage and broaden the base of investments and provide for matters
ancillary thereto.

2.4.2 Financial Strategy


Maximize the present value of the stakeholders' wealth in an innovative
and improved manner in terms of accountability, propriety, regularity
and value for money.
Retain a trade-off between opportunities and responsibilities so as to
stay ahead of competition and provide superior returns on equity by
virtue of sustained growth.
Incorporate analyses and apply knowledge continuously to provide
superior financial decisions.
Focus on core competence in financial services.

2.4.3Business Strategy
Diverse revenue streams through introducing multiple products.
Strive for new business model commensurate with the Government's
economic policy relating to capital market development.
Recover outstanding loans, margin loans & other loans and advances and
thus increase existing liquidity position. Also mobilize untapped savings
for productive investment.
Promote and establish subsidiary companies for business expansion.
Encourage and motivate the EEF Project owners' to make EEF Project a
successful venture by generating profit and dividend and buy-back the
shares on time.

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2.4.4 Customer Strategy
Provide real-time data and ledger balances of the stocks and funds
position enabling customers to know their latest positions.
Allow customers to sophisticated information systems.
Provide available data and information at their finger-tips to take
appropriate investment decisions.
Enhance customer retention through quality research and service and
educate them of the 'Do's and Don'ts for the sake of their financial safety.

2.4.5 ICT Strategy


Efficiently deploy advanced technology and create a wide, multi-modal
network to serve customers at one stop.
Deploy all resources and energies to tackle potential risks regarding IT
System breakdown, or any other debacles.

2.4.6 HR Strategy
Conducive working environment for employees.
Attract exceptionally talented, well-educated, highly adaptive and
efficient people.

2.4.7 Risk Strategy


Insulate the Corporation from the risks associated with the business while
simultaneously creating an environment conducive for its growth.

2.4.8 Governance Strategy


Promote, maintain and uphold internationally accepted Corporate
Governance and sustainable business practices.

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2.5 Share Capital Ownership Pattern:

Share holding positions as on 30 June, 2014

Shareholder No. of No. of Percentage


Shareholders Shares
Government of the People's Republic 1 11390625 27.00
of Bangladesh
State Owned Commercial Banks 4 9587947 22.73
Development Financial Institutions 1 10813074 25.63
State Owned Insurance Corporation 2 5212524 12.35
Denationalized Private Commercial 2 3832836 9.08
Banks
Private Commercial Banks 7 28043 0.07
Mutual Fund 13 378429 .90
Other Institutions 170 118668 0.28
General Public 3103 825354 1.96
Total 3303 42187500 100.00

Table 2.1: Share Capital Ownership Pattern of ICB


Source: (ICB, 2013-14) partners in dynamic investment (Annual Report2013-14)

2.6 Objectives of ICB


ICB has several objectives. These are:
To encourage and broaden the base of investments.
To develop the capital market
To mobilize savings
To promote and establish subsidiary companies for business expansion
To provide for matters ancillary there to.

2.7 Business Policies of ICB:

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


commerce, depositors, investors and to the public in general
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To provide financial assistance to projects subject to their economic and
commercial viability
To arrange equity and loans singly or through consortium of financial institutions
including banks.
To develop and encourage entrepreneurs to diversify investments
To inspire small and medium savers for investment in securities
To create employment opportunities
To encourage more on investment in Agro-based and Information &
Communication (ICT) sectors

2.8 Functions of ICB:

Direct purchase of shares and debentures including placement and equity


participation
Participating in and financing of joint-venture companies
Providing lease finance singly and through syndication
Managing existing Investment Accounts Managing existing mutual funds and
unit fund Managing Portfolios of existing businesses Conducting Computer
Training Programs
Providing advance against ICB Unit and Mutual Fund certificates
To act as Trustee and Custodian
Providing Bank Guarantee
Providing Consumer Credit
Providing investment counseling to investors
Participating in Government Divestment Program
Introducing new business products suiting market demand
Dealing in other matters related to Capital Market
To supervise and control the activities of the subsidiary companies

2.9 Composition of the Board:

Chairman
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Dr. S. M. mahfuzur Rahman
Managing Director
Md. Fayekuzzaman

Directors
Kazi Shofiqul Azam
Gokul Chand Das
S.M. Moniruzzaman
Dr. Md. Zillur Rahman
Pradip Kumar Dutta
Syed Abdul Hamid
S.M. Aminur Rahman
Md. Rezaul Karim

Secretary
Dipika Bhattacharjee

Table No 2.2: Composition of the Board

Source: Annual report ICB 2013-2014

2.10 Sources of Capital of ICB:


Particulars As on 30 June Increase/ decrease
(Percentage)
2014 2013 %
Paid-Up Capital 421.88 337.5 25
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Reserve 1382.21 1428.11 -3.21
Retained Profit 307.95 448.47 -31.33
Long-Term Govt. Loan 2.45 2.80 -12.5
Debentures - 1.80 -100
Others 11.23 10.25 9.56
Total 2125.72 2228.93 -4.63

Table No: 2.3 Capital structure


Source: Annual report ICB 2013-2014

Graph No: 2.1 Capital structure as on 30 June, 2014


Source: Annual report ICB 2013-2014

2.11 Shareholding Position of ICB:


The shareholding position as on 30 June 2014 was as follows:
Sl. Shareholders No. Of No. Of Percenta
No Shareho Shares ge of
. lders Sharehol
ders
1. Government of Bangladesh 1 11390625 27.00
2. State owned commercial banks 4 9587947 22.73
3. Development Financial Institution 1 10813074 25.63
4. State owned insurance corporation 2 5212524 12.35
5. Denationalized private commercial 2 3832836 9.08
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banks
6. Private commercial banks & mutual 13 78158 0.19
fund
7. Other institutions 145 197112 0.47
8. General public 2727 1075224 2.55
Total 2895 42187500 100.00

Table No. : 2.4 Shareholding Position of ICB as on 30 June, 2014


Source: Annual report ICB 2013-2014

Graph No 2.2 Shareholding position as on June, 2014

Source: Annual report ICB 2013-2014

2.12 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 & superintendence of the corporation is created
in a board of directors, which consists of 11 directors including the chairman &
managing Director of ICB. The Board of Directors consists of the following directors:
a) Chairman to be appointed by the government.
b) The Directors to be appointed by the government from among persons servicing
under the Government.

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c) The Managing Director, Bangladesh Bank.
d) The Managing Director, Bangladesh Development Bank Limited
e) Four other directors to be elected by the shareholders other than the government,
Bangladesh bank, Bangladesh Development Bank Ltd.
f) The managing directors of ICB to be appointed by the government. The board is
discharging its functions acts on commercial considerations with due regard to
the interest of the industry & commerce, investment climate, capital market,
depository, investors & to the public interest.

2.13 Share Price


Share price of ICB varied from lowest Tk. 1176 to highest Tk. 2570 in the stock
exchanges during the year. As on 30 June 2013, the market price of share was Tk.
1796.50 on DSE and 1593.75 on CSE.

2.14 Institutional framework:


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.

2.15 Milestones of ICB:

Table No 2.6: Milestones achieved by ICB

Date/Establishment
Milestones
Commencement

Establishment of ICB 1st October 1976

Investors Scheme 13th June 1977

ICB Chittagong Branch 1 April 1980

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First ICB Mutual Fund 25th April 1980

ICB Unit Fund 10th April 1981

Second ICB Mutual Fund 17 June 1984

Third ICB Mutual Fund 19 May 1985

Fourth ICB Mutual Fund 6 June 1986

Fifth ICB Mutual Fund 8 June l987

Sixth ICB Mutual Fund 16 May 1988

ICB as the country's Nodal DFI in


7 May 1992
SADF

Seventh ICB Mutual Fund 30 June l995

Eighth ICB Mutual Fund 23 July 1996

ICB Local Office, Dhaka 15 April 1997

Purchase of own Land with Building


11 December 1997
(Rajarbag)

Advance Against ICB Unit Certificates


12 October 1998
Scheme

Lease Financing Scheme 22 April 1999

"The Investment Corporation of


6 July 2000
Bangladesh (Amendment)Act, 2000"

Registration of the three Subsidiary


Companies with the Registrar of Joint 5 December 2000
Stock Companies and Firms

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

Consumers Credit Scheme 15 February 2004

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Venture Capital Financing Scheme 26 April 2007

Commencement of management of
Equity and Entrepreneurship Fund 1 June 2009
(EEF)

Launching of Tk. 50 Bilion Bangladesh


5 May 2011
Fund

New Centre for In-House Training 28 June 2013

Initiation of ICB News Letter 26th march, 2014

Approval of ICB Act-2014 in Cabinet 28th April, 2014

Source: (ICB, 2013-14) partners in dynamic investment (Annual Report2013-14)

2.16 Risk Management:


Being a leading state owned financial institution in the capital and money market, ICB
has to manage various types of financial and nonfinancial risk in addition to systematic
risks of all nature of business within and outside working environment. In this regard, at
ICB the overall level of risk is continuously assessed and the risk management process is
embedded into the processes and activities of the organization. ICB's strategy is to
convert all business risks into opportunities and minimize the threats through proper
address of risks and strengthen control system. Our collective risk management
capability and competency supports successful implementation of strategic priorities and
enables the development of a sustainable and resilient business that is responsive to the
ever-changing environment. As a result ICB achieved a significant growth in business,
ensuring that risks were assumed in a considered manner within the risk appetite
framework.

2.17 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

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recent enactment of " The Investment Corporation of Bangladesh (Amendment) Act,
2000" ((XXIV) of 2000scope 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
compelled by Companies Act 1994, trust Act 1882, Insurance Act 1983, security and
exchange commission Act 1993, Banking companie3s Act 1993, Foreign exchange
regulation 1974 Income Tax Act etc.,

It is to note that no provision of laws relating to the winding up of companies or bank


shall apply to the corporation and the corporation and the corporation shall not be wound
up save by order of the government and in such manner as it may direct.

2.18 Office and Branch office of ICB:


ICB is a statutory corporation & selling securities. In order to perform these activities
effectively ICB has group of skilled manpower. For these purposes ICB has established
seven branches in Bangladesh. Total branches are as follows:

Head office: Branches:


Dhaka Local office, Dhaka
Chittagong Branch
Sylhet Branch
Barisal Branch
Khulna Brunch
Bogra Branch
Rajshahi Branch

2.19 Human Resources Department:


Human resource management (HRM) is the process of employing people, training them,
compensating them, developing policies relating to them, and developing strategies to
retain them. As a field, HRM has undergone many changes over the last twenty years,
giving it an even more important role in todays organizations. In the past, HRM meant
processing payroll, sending birthday gifts to employees, arranging company outings, and
making sure forms were filled out correctlyin other words, more of an administrative
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role rather than a strategic role crucial to the success of the organization. Jack Welch,
former CEO of General Electric and management guru, sums up the new role of HRM:
Get out of the parties and birthdays and enrolment forms. Remember, HR is
important in good times; HR is defined in hard times. Its necessary to point out here, at
the very beginning of this text, that every manager has some role relating to human
resource management. Just because we do not have the title of HR manager doesnt
mean we wont perform all or at least some of the HRM tasks. For example, most
managers deal with compensation, motivation, and retention of employeesmaking
these aspects not only part of HRM but also part of management. As a result, this book is
equally important to someone who wants to be an HR manager and to someone who will
manage a business. People can be transformed into human resources when they are
equipped with adequate knowledge, skills and competencies.

2.20 Functions of various departments:


Functions of Various Departments under the Various Divisions of ICB:

Divisions Departments
Secretary`s Division A. Secretary`s Department.
B. Public Relations Department.
Trustee Division A. Trustee Department.
B. Custodian Department.
Legal Affairs Division A. Law Department.
B. Documentation Department.
Establishment Division A. Real estate Department.
B. Procurement and common service
Department.
Administration Division A. Human Resource Management
Department.
B. Discipline, Grievance and appeal
Department.
C. Pension and welfare Department.
Subsidiary affairs Division A. Subsidiary affairs Department-1.
B. Subsidiary affairs Department-2.
Branch affairs Division A. Branch affairs Division-1.
B. Branch affairs Division-2.
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EEF Administration Division A. EEF Administration Department.
B. EEF Audit and Accounts Department.
EEF Recovery and Legal affairs A. EEF Recovery Department.
Division B. EEF Implementation Department.
C. EEF Legal Affairs Department.
EEF Appraisal Division A. EEF (Agro) Department.
B. EEF (Non Agro) Department.
Internal Control and A. Audit Department.
compliance Division B.Inspection and compliance Department.
C. Organization and Methods Department.
Accounts Division A. Central Accounts Department.
B. Loan Accounts Department.
Finance Division A. Fund Management Department.
B. Budget and risk Management
Department.
Merchandising Division A. Investors Department.
B. Banker to the issue Department.
Leasing Division A. Leasing Department.
Planning and research Division A. Planning and research Department.
B. Business development Department.
Implementation and Recovery A. Implementation Department.
Division B. Recovery Department.
Portfolio management Division A. Portfolio management Department.
B. Stock Market Analysis Department.
Credit Division A. Lien and General Credit Department.
B. Appraisal Department.
Hardware and Communication A Hardware and Communication
Division Department.
B. Data Admin. And MIS Department.
Software Division A Programming Department.
B. System Analysis Department.
Depository Division A. Shares Department.
B. Securities Reconciliation Department.
Mutual Fund Division A. Unit fund Department.
B. Mutual funds Department.

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2.21 Activities of subsidiary Companies:

A. ICB Capital Management Limited:


ICB Capital Management Limited can act all types of merchant banking business and to
act as a member of financial markets, portfolio managers issuer, underwriting, co-
underwriters, sub-underwriters, lending activities, to finance venture capital leasing
activities, bridge financing and provide long-term loan, discounting bill of exchange,
providing credit facilities through credit cards, internet counsel regarding investment and
industrial entity.

B. ICB Asset Management Company Limited:


ICB Asset Management Company Limited can manage assets of any trustee or funds of
any type and or character and to hold, acquire, sell or deal in such assets or any trusts or
funds, to manage and administer provident or pension funds, to organize various schemes
of different types for trusts or funds, to take part on the management of mutual fund
operations, to operate, conduct, accomplish and establish services for industrial, trading
and commercial activities, to invest funds in shares and securities, to carry on business as
financial and monetary agents to merchandise shares and other securities.

C. ICB Securities Trading Company Limited:


ICB Securities Trading Company Limited acts as a member of Stock Exchange and has
over-the-counter markets, to carry out business broker, CDs broker, jobbers or dealers in
stock shares, securities, commodities, papers, bonds, obligations, debentures stocks, and
foreign currencies, treasury bills in Bangladesh and abroad. To open and maintain
investors account or margin accounts and purchase and sell shares. To carry on business
as financers, promoters, capitalists, financial and monetary agent to merchandise shares

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and other securities and to provide professional counsel regarding investment and
manage industrial entity.

2.22 Balance Sheet


Investment Corporation of Bangladesh
Statements of Financial Position (Balance Sheet)
As at 30 June 2014
2013 2014
Property and Assets
Cash and Bank Balances 8,864,526,467 10,438,161,803
Investments: 57,572,888,714 41,653,517,826
Capital Investment in ICB Subsidiary Companies 579,499,100 579,499,100
Capital Investment in Other Institutions 358,174,599 358,174,599
Marketable Securities- at market value 50,925,303,015 35,255,844,127
Investment in Bangladesh Fund 5,709,912,000
5,460,000,000
Loans and Advances: 13,623,362,347 13,868,818,197
Margin Loan Secured 4,083,450,719 4,026,903,363
Unit & Mutual Fund Advance Account Secured 187,822,607 180,341,892
Consumer Credit Scheme 4,765,729 7,508,372
Bridging Loan 4,981,582 4,981,582
Debenture Loan 21,225,208 21,225,208
Lease Receivables 1,026,182,917 1,065,648,188
Advance against Equity 1,150,000,000 1,665,009,286
Purchase of Debenture 885,242,599 627,927,789
Other Loans and Advances 6,259,690,986 6,269,272,517
Premises and Equipment (at cost less depreciation95,013,193 88,421,946
Other Assets 6,028,376,159 5,240,755,276
Total Assets 86,184,166,880 71,289,675,048

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Liabilities and Capital
Liabilities
Borrowings: 9,537,766,646 9,824,500,000
Government Loan 587,766,646 24,500,000
Investment in Bangladesh Fund 5,709,912,000 5,460,000,000
Loans and Advances: 13,623,362,347 13,868,818,197
Margin Loan Secured 4,083,450,719 4,026,903,363
Unit & Mutual Fund Advance Account Secured 187,822,607 180,341,892
Consumer Credit Scheme 4,765,729 7,508,372
Bridging Loan 4,981,582 4,981,582
Debenture Loan 21,225,208 21,225,208
Lease Receivables 1,026,182,917 1,065,648,188
Advance against Equity 1,150,000,000 1,665,009,286
Investment in Bangladesh Fund 5,709,912,000 5,460,000,000
Loans and Advances: 13,623,362,347 13,868,818,197
Margin Loan Secured 4,083,450,719 4,026,903,363
Unit & Mutual Fund Advance Account Secured 187,822,607 180,341,892
Consumer Credit Scheme 4,765,729 7,508,372
Bridging Loan 4,981,582 4,981,582
Debenture Loan 21,225,208 21,225,208
Lease Receivables 1,026,182,917 1,065,648,188
Advance against Equity 1,150,000,000 1,665,009,286
Purchase of Debenture 885,242,599 627,927,789
Other Loans and Advances 6,259,690,986 6,269,272,517
Premises and Equipment (at cost less depreciation95,013,193 88,421,946
Other Assets 6,028,376,159 5,240,755,276
Total Assets 86,184,166,880 71,289,675,048
Liabilities and Capital
Liabilities
Borrowings: 9,537,766,646 9,824,500,000
Government Loan 587,766,646 24,500,000
Borrowings from Different Banks 8,950,000,000 9,800,000,000
Deposits 43,526,327,499 34,881,134,873
Deferred Interest 2,101,436 2,451,677
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Other Liabilities and Provisions 7,173,772,017 5,461,175,156
Carried forward 60,239,967,598 50,169,261,706
Brought forward 60,239,967,598 50,169,261,706
Capital / Shareholders Equity 25,944,199,281 21,120,413,342
Paid-up Capital 4,218,750,000 4,218,750,000
Reserves 18,078,320,568 13,822,148,160
Retained Earnings 3,647,128,713 3,079,515,182
Total Liabilities and Shareholders Equity 86,184,166,880 71,289,675,048
Contra Entries
Off-Balance Sheet Items:
Contingent Liabilities:
Guarantee to DSE & CSE on behalf of ISTCL 500,000,000 500,000,000
Total Off-Balance Sheet Items 500,000,000 500,000,000
The attached notes form an integral part of these Financial Statements. For and
on behalf of Investment Corporation of Bangladesh

2.23 Profit and Loss Account


Investment Corporation of Bangladesh
Statement of Comprehensive Income (Profit and Loss Account)
For the year ended 30 June 2014
2013 2014
Operating Income
Interest Income 2,507,341,063 2,799,431,336
Interest paid on Deposits, Borrowings, etc. 4,722,763,211 4,413,611,782
Net Interest Income (2,215,422,148) (1,614,180,446)
Dividend 2,096,167,472 1,206,228,116
Capital Gain 4,417,259,038 3,539,448,775
Fees, Commissions & Service Charges 381,794,902 261,296,357
Other Operating Income 9,616,244 1,938,848
Total Operating Income (a) 4,689,415,507 3,394,731,651
Operating Expenses
Salary and Allowances 296,738,136 240,202,560
Rent, Taxes, Insurance, Electricity, etc. 39,982,141 40,626,592

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Legal Expenses 1,980,901 1,816,525
Postage, Stamps, Telegram & Telephone 4,596,187 3,766,973
Auditors Fees 200,000 120,000
Stationary, Printing, Advertisement, etc. 14,269,804 11,075,193
Directors Fees & Allowances 1,454,750 1,316,750
Repair, Maintenance & Depreciation-Premises
& Equipment 25,561,898 25,312,844
Brokerage 10,678,972 30,106,272
Other Operating Expenses 76,659,056 74,752,801
Total Operating Expenses (b) 472,121,844 429,096,510
Operating Profit (a-b) 4,217,293,663 2,965,635,141
Non-operating Income 43,618,574 80,797,669
Profit before Provision (c) 4,260,912,237 3,046,432,810
Provision against Loans and Advances 1 378,633,894 144,816,180
Provision against Other Assets 2 140,404,137 -
Provision against off balance sheet items - 5,000,000
Total Provision (d) 519,038,032 149,816,180
Profit before Tax (c-d) 3,741,874,205 2,896,616,630
Provision for Taxation
Current Tax 1 631,000,000 423,000,000
Deferred Tax 5,760,673 (5,436,923)
636,760,673 417,563,077
Net Profit Available for Appropriation 3,105,113,532 2,479,053,553
Net Profit Available for Appropriation 3,105,113,532 2,479,053,553
Earnings per Share (EPS) 73.60 58.76
The attached notes form an integral part of these Financial Statements.
For and on behalf of Investment Corporation of Bangladesh

2.24 Cash Flow Statement


Investment Corporation of Bangladesh
Cash Flow Statement
For the year ended 30 June 2014
2013 2014
Cash flow from operating activities:
24
Interest Received 2,721,444,234 2,783,945,343
Interest Paid (4,931,141,040) (4,078,254,733)
Received from capital gain on sale of listed shares 4,417,259,038 3,539,448,775
Dividend Received 1,998,360,077 1,106,703,278
Fees & Commissions Received 381,794,902 261,296,357
Cash Paid to Employees (292,615,573) (235,443,269)
Cash Paid to Suppliers (70,111,907) (65,684,924)
Cash Received from Other operating activities 53,234,818 82,736,517
Cash Paid for Other operating activities (88,792,778) (106,175,823)
Cash Flow before changes in
Operating Assets & Liabilities 4,189,431,771 3,288,571,521
Changes in Operating Assets & Liabilities
(Increase)/Decrease in Loans & Advances 245,455,849 (1,528,840,315)
(Increase)/Decrease in Investment in other Institution - (309,421,762)
(Increase)/Decrease in other Assets (909,677,334) (1,509,498,139)
Increase/(Decrease) in Deposit
Received from other Banks 16,276,100,411 9,647,038,880
Increase/(Decrease) in Deposit
received from Other Depositors (7,630,907,785) 675,475,647
Increase/(Decrease) in Long Term Debt (286,733,354) 5,496,500,000
Increase/(Decrease) in other Liabilities 272,679,467 (538,980,337)
7,966,917,253 11,932,273,974
Net Cash from Operating Activities 12,156,349,025 15,220,845,495
Cash Flow from Investment Activities:
Cash inflow from Sale of Securities 6,757,401,613 4,076,526,726
Cash outflow for Purchase of Securities (19,236,665,771) (19,119,169,937)
Cash Increase/Decrease from
Sale/Purchase of Fixed Asset (21,454,871) (4,789,817)
Net Cash used in Investment Activities (12,500,719,030) (15,047,433,028)
Cash Flows from Financing Activities
Dividend paid in Cash (1,229,265,331) (615,253,452)
Net Cash used in Financing Activities (1,229,265,331) (615,253,452)
Net Increase/(Decrease) in
Cash and Cash Equivalent (1,573,635,336) (441,840,985)
25
Cash and Cash Equivalent at
beginning of the year 10,438,161,803 10,880,002,788
Closing Cash and Cash
Equivalent at end of the year 8,864,526,467 10,438,161,803

Chapter- 3
Overview of ICB, s Mutual Fund

26
3.1 Definition of ICBs Mutual Funds:
Mutual funds has been defined by different authors in different words meaning one & the
same thing i.e., it is a non-deposition or non-banking financial intermediary which acts
as important vehicle for bringing wealth holders & deficit units together indirectly.

Mutual funds are corporation which accepts dollars from savers & then use these dollars
to buy stocks, long-term bonds, and short-term debt. Instruments issued by business or
Govt. unit, these corporations pool funds & thus reduce risk by diversification.

Mutual funds sell equity shares to investors & use these funds to stocks and/ or bonds.
They tend to specialize in denomination & default risk intermediates. Mutual funds sell
relatively small denomination securities to wealthy holders & use the proceeds to
purchase the market securities of deficit units. These also gain economics of scale, which
lower the cost of analyzing securities managing portfolio & trading in stocks & bonds.

Mutual funds earned income by way of interest or dividend or both from the securities it
holds. It deducts fee, operating expenses & a management income & then passes the
remainder to wealth holder through dividends on the mutual fund share. The dividend
fluctuates with the income on mutual funds investment.

3.2 Types of Mutual Fund

There are 2 types of Mutual Fund:


a) Open-end mutual fund
b) Close-end mutual fund
3.2.1. Open-end Mutual Fund:
The holders of the shares in fund can resell them to the issuing mutual fund company at
anytime. They receive in turn the net assets value (NAV) of the shares at the time of
resale. Such mutual funds companies place their funds in the secondary securities
27
market. The open-end mutual fund companies buy or sell their own shares. These
companies sell new shares at NAV plus a loading or management fee & redeem shares at
NAV.
3.2.2. Close-end Mutual Fund:
Close-end fund Investment Company has a definite target amount for the funds & cannot
sell more shares after its initial offerings. Its shares are issued like any other companys
new issue listed & quoted at stock exchange. The shares of close-end fund are not
redeemable of their NAV as are in open-end fund. These shares are traded in secondary
market prices that may be above or below their NAV. The objectives of close-end funds
may differ as compared to open-end fund. The prices of close end mutual fund shares are
denominated by demand & supply & not by NAV. The examples of close-end funds
include can stock, can share, master-share, magnum etc. which have the above figures.

3.3 Classification of Mutual Fund:


Each mutual fund has its specific investment policy to serve specific investors. So,
mutual fund can be classified by investment policy they are as follow:

3.3.1. Money Market fund:


This fund is invested in short-term debt securities like commercial paper, Treasury bill.
Net Assets Value is fixed and there is no tax implication with the redemption share.

3.3.2. Equity funds:


These are the funds that are invested in income stocks.

3.3.3. Fixed income funds:


These funds are invested in bonds like treasury bonds, municipal bond. Here is no risk
for the investors because they get fixed income from it.

3.3.4. Income funds:


From this fund investors can maximize income from investment.

28
3.3.5. Balanced funds:
These funds are invested in both bonds and stocks. Here an investor risk is low and the
investors get current income.

3.3.6. Asset-Allocation Funds:


These funds may include foreign equity, real estate shares, natural resources companies
etc.

3.3.7. Specialized sector funds:


These funds are involved in particular and specific industries like housing,
telecommunication, utilizes or precious metals.

3.4 Mutual fund returns:


There are three types of mutual fund returns:
I. Dividends: The dividend income to mutual fund company from investments
in shares, both equity & preference, are passed on to holders. Their dividends are
subject to tax deduction as per income Tax Laws.
II. Capital gains: Mutual fund holders or owners also get benefits of capital
gain, which are realized & distribute in cash or hand. There are subject to tax in
the same way as gain or uses of directly hold securities.
III. Increase or decrease in net assets value: The increase or decreases
in net assets value are the results of unrealized gains & losses on portfolio
holdings. They are not tax until released.

3.5 Advantages of Mutual Fund:


Mutual fund substantially lowers the investment risks of lower 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 investors & channels them into
lucrative investment opportunities. As a result, mutual fund adds liquidity to the
market. Moreover, given that the funds are long-term investment vehicles, they
reduce market volatility by offerings support to scrip price.

29
Mutual fund provides the small investors access to the whole market that, at an
individual level, would be difficult if not impossible to achieve.
Mutual funds are one of the most strictly regulated investment vehicles. The laws
governing fund require exhaustive disclosure to the SEC as well as the general
public. The laws also entail continuous regulations of fund operations by the
Trustee.
Mutual fund is the only vehicle which operates simultaneously both at the
demand as well as the supply side of the market. One the supply side, the mutual
funds being itself a listed security at the SEC, introduces a good & reliable
instrument in the capital market for the small investor.
The investor can pick & chase a mutual fund to match his or her particulars
needs.
The investors save a great deal in transaction cost given that he /she has access to
a large number of securities by purchasing single share of a mutual fund.

3.6 Launching of ICB mutual funds:

Name of the fund Date of launching Paid-up capital


(Tk. in lac)
First ICB Mutual Fund 25 April, 1980 75.00
Second ICB Mutual Fund 17 June, 1984 50.00
Third ICB Mutual Fund 19 May, 1985 100.00
Forth ICB Mutual Fund 06 June, 1986 100.00
Fifth ICB Mutual Fund 08 June, 1987 150.00
Sixth ICB Mutual Fund 16 May, 1988 500.00
Seventh ICB Mutual Fund 30 June, 1995 300.00
Eighth ICB Mutual Fund 23 July, 1996 500.00
Total= 1775.00
Table No: 3.1 launching of ICB mutual funds
Sources: ICB Annual Report 2013-14

3.7 Regulatory set-up of ICB Mutual Fund:


When ICB took the initiative of floating mutual fund in Bangladesh, there was no
organized and recognized regulatory set-up for managing of mutual funds in Bangladesh.
ICB had to formulate the necessary regulatory set-up and rules for the management of

30
mutual funds; the regulatory set-up for ICB Mutual funds is explicitly explained in the
ICB Regulation-1977. The main features of this regulatory set-up are mentioned below:

The corporation might form the ICB mutual funds of such denominations and
securities in such each case as the board may determine.

ICB Mutual Fund certificates will be listed and quoted in the stock exchange in
Bangladesh and the board may determine subject to the permission of the stock
exchange.

ICB Mutual funds certificate shall be movable property and freely transferable.

ICB Mutual fund certificates may be offered for sale or subscription to the
general public or to institution, individuals or class individuals or to all or some
of them and in such manner as the board may in case determine.

ICB Mutual fund certificate will be sold or offered for subscription with the
prior consent of the government.

3.8 Mutual Fund Management:


There is a decision making board in order to manage different mutual funds. As per
boards decision securities are sold brought 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 & given it name. After that it is
published on any newspaper as prospectus, which shares & debentures have been,
brought under these mutual fund shows in the prospectus. By studying this prospectus
public response whether they will buy the mutual fund or not.

3.9 How to Buy or Sell Mutual Funds:


Mutual fund is a close-end fund. So anybody that wants to buy mutual fund he/she has to
buy it from Dhaka Stock Exchange or Chittagong Stock Exchange through any
stockbroker. In the same way he/she can sale it.

31
3.10 Registration of Mutual Fund:
In order to receive dividend or to be shareholder of mutual funds anybody who has
purchased it must registrar his then name & address to company registration book
without book closing date. Mutual fund department register shareholders name &
address. As per the name & address Mutual Fund Department sent dividend warrant to
shareholders.

3.11 Causes behind investing in Mutual Fund:


ICB mutual fund is regarded as the most trusted medium of investment in the country &
it is very much popular with the small & medium of investment in the country & it is
very much popular with small & medium investors. The reasons of investing in ICB
mutual fund are as follow:

i. Free from Tax: Investment in mutual fund free from income tax.
ii. High Return: Most small & medium investor seeks a smooth return from their
investment. The dividend payment against each certificate was very much
attractive. This brings satisfaction to the investors.
iii. Free from Harassment: Investment want to avoid harassment in the investment
process. Mutual fund of ICB reluctant the investors from such type of pressure.
iv. Risk Free: Small & medium investors are very much cautions about the security
of their investment & they found that there is not chance to loss their savings &
no doubt about the institution that is will not close its operation without any
notification.

3.12 How Mutual Funds Work:


A mutual fund is a separate company. It has a structure that offers several safeguards for
investors. The structure is stated in the following.
i) Shareholder ownership: Since the investors bear the funds
investment risk so they are owners of the corporation.
ii) Board of Director: Shareholders elect Board of Directors.

iii) Management Company: Management Company handles daily


administration. It may serve as the investment advisor, buying &
selling of portfolio.

32
iv) Adviser: According to the objects of the funds adviser runs the
portfolio.
v) Independent Custodian: The funds asset (stock, Bonds cash) is kept
by an independent custodian. This protects shareholders against theft
by management.

3.13 Contribution in Mutual Fund in Asset Management


Company Limited (AMCL):
AMCL is the subsidiary company of ICB AMCL first mutual fund was established under
a trust deed executed between the ICB and Capital Management limited (ICML) as
sponsor & the Investment Corporation of Bangladesh (ICB) as trustee the trust deed
executed on 23rd April 2003. The fund was registered with the Securities & Exchange
Commission (SEC) on 24 may, 2003. Under the Securities & Exchange Commission
(Mutual Fund) Rules, 2001 the SEC approved the prospectus on 04 June 2003 in
accordance with the Securities & Exchange Commission (Mutual Fund) Rules, 2001.
The prospectus of the fund was published on 9 th June 2003 & units over allotted on 21 st
July 2003, ICB AMCL first mutual fund is a close-mutual fund of 10 years tenure. The
fund is listed with Dhaka Exchange Limited (DSE) & Chittagong Stock Exchange
Limited (CSE). The units of the fund are transferable. Income is tax-free up to contain
level. Investment is qualified for tax credit as per Income Tax Ordinance, 1974.

3.13.1 Operational Highlights:

Name Date of Nature of the Size of the Fund


Launching. Fund ( TK. in crore)
ICB AMCL 1st 16-06-2003 Close-end 10.00
Mutual Fund

33
3.13.2 Inclusion of two non-traditional products in the countrys stock
market:
During 2004-05, ICB Asset Management Company Limited a subsidiary of ICB floated
two different types of mutual funds, for the first time in Bangladesh, which added a new
dimension in the country stock market.

A. ICB AMCL Islamic Mutual Fund:


It is a close-end mutual fund, which is governed by the Islamic shariah
Law. The size of the fund is Tk 10.0 core. The fund would cater to the demand of the
investors who wish to invest only in shariah based financial products.

B. ICB AMCL Pension Holders Unit fund:


It is an open-end mutual fund with an initial capital of TK. 10.0 crore. The fund has been
constituted only for the pensions who retire from their service under pension. Or gratuity
scheme from government, semi-government, autonomous bodies, sector corporations,
nationalized commercial banks, financial institutions and insurance corporations.

3.14 Corporate Governance:


The fund being listed on the stock exchange the management is committed to observe
prescribed code of corporate governance the financial statements present fairly the state
of affa8irs of the fund & result of its corporation. There was no qualifying report on the
operation of the fund as evident from the Auditors reports submitted to the Trustee by
the Auditor of the fund Hoda Vasi Chowdhury & Co.

3.15 First ICB Mutual Fund


First ICB Mutual Fund was established in April 1980, under regulation 29A of ICB
(general) regulations with a total capital of TK. 50 lac divided into 50000 Certificates of
Tk. 100 each. The management of the fund is vested with ICB. In the above Table-01
shown that as on 30th June, 2005 market value of portfolio of First ICB Mutual Fund
consisting of 973 certificate holders amounted to TK. 13.09 crore as against cost of

34
portfolio TK. 3.12 crore. That means capital appreciation of TK. 9.97 crore. In year 2005
market price per certificate at DSE was TK. 2655 and First Mutual Fund was declared a
dividend of per certificate was TK. 210.

3.16 Second ICB Mutual Fund


Second ICB Mutual Fund was established in June 1984, under regulation 29A of ICB
(general) regulations with a total capital of TK. 50 lac divided into 50000 Certificates of
Tk. 100 each. The management of the fund is vested with ICB. In year 2005 Second ICB
mutual fund no of certificate holders was 55 and market price per certificate at DSE was
TK. 820. In that year market value of portfolio was Tk. 3.12 and cost of portfolio was
Tk. 2.84 crore. In year 2005 Second ICB mutual fund declared a dividend of Tk. 55.

3.17 Third ICB Mutual Fund


Third ICB Mutual Fund was established in May 1985, under regulation 29A of ICB
(general) regulations with a total capital of TK. 1 crore divided into 100,000 Certificates
of Tk. 100 each. The management of the fund is vested with ICB. In the above Table-01
shown that as on 30th June, 2005 market value of portfolio of third ICB Mutual Fund
consisting of 2748 certificate holders amounted to TK. 4.73 crore as against cost of
portfolio TK. 4.17 crore. That means capital appreciation of TK. 0.56 crore. In year 2005
market price per certificate at DSE was TK. 697 and Third Mutual Fund was declared a
dividend of per certificate was TK. 52.

3.18 Fourth ICB Mutual Fund


Fourth ICB Mutual Fund was established in June 1986, under regulation 29A of ICB
(general) regulations with a total capital of TK. 1 crore divided into 100,000 Certificates
of Tk. 100 each. The management of the fund is vested with ICB. As on June 30, 2005
the market value of the portfolio consisting 2152 certificate holders amounted to Tk. 4.57
crore as against cost of portfolio of Tk. 3.82 crore indicating capital appreciation of Tk.
0.75 crore. In year 2005 market price per certificate at DSE was TK. 564 and Fourth
Mutual Fund was declared a dividend of per certificate was TK. 48.

3.19 Fifth ICB Mutual Fund


Fifth ICB Mutual Fund was established in June 1987, under regulation 29A of ICB
(general) regulations with a total capital of TK. 5 crore divided into 500,000 Certificates
of Tk. 100 each. The management of the fund is vested with ICB. In the above Table-01
35
shown that market value of portfolio of Fifth ICB mutual fund was Tk. 7.13 crore and
cost of portfolio was Tk. 5.99. In that year market price per certificate at DSE was Tk.
341 and number of certificate holders was 3923. Fifth Mutual Fund was declared a
dividend of per certificate was TK. 27 in year 2005.

3.20 Sixth ICB Mutual Fund


Sixth ICB Mutual Fund was established in June 1988, under regulation 29A of ICB
(general) regulations with a total capital of TK. 1.50 crore divided into 150,000
Certificates of Tk. 100 each. The management of the fund is vested with ICB. In the
above Table-01 shown that market value of portfolio of Sixth ICB mutual fund was Tk.
10.02 crore and cost of portfolio was Tk. 9.42. In that year market price per certificate at
DSE was Tk. 217 and number of certificate holders was 9712. Sixth Mutual Fund was
declared a dividend of per certificate was TK. 18.5 in year 2005.

3.21 Seventh ICB Mutual Fund


Seventh ICB Mutual Fund was established in July 1995, under regulation 29A of ICB
(general) regulations with a total capital of TK. 3 crore divided into 300,000 Certificates
of Tk. 100 each. The management of the fund is vested with ICB. As on June 30, 2005
the market value of the portfolio consisting 3163 certificate holders amounted to Tk.
12.21 crore as against cost of portfolio of Tk. 11.09 crore indicating capital appreciation
of Tk. 1.12 crore. In year 2005 market price per certificate at DSE was TK. 217 and
Seventh Mutual Fund was declared a dividend of per certificate was TK. 16.

3.22 Eight ICB Mutual Fund


Eighth ICB Mutual Fund was established in August 1996, under regulation 29A of ICB
(general) regulations with a total capital of TK. 5 crore divided into 500,000 Certificates
of Tk. 100 each. The management of the fund is vested with ICB. In the above Table-01
shown that market value of portfolio of Eighth ICB mutual fund was Tk. 12.79 crore and
cost of portfolio was Tk. 11.54. In that year market price per certificate at DSE was Tk.
205 and number of certificate holders was 7671. Eighth Mutual Fund was declared a
dividend of per certificate was TK. 15 in year 2005.

36
Chapter- 4
Analysis & Findings

37
4.1 Mutual Funds of ICB:
In the developed countries like Bangladesh, mutual funds are popular & gained
confidence of not only the investors but also Government. In Bangladesh mutual fund
came through ICB in 1980. The total paid up capital of eight mutual funds is Tk. 17.75
core. The ICB mutual fund is more attractive than other funds.

4.2 Comparative Performance of ICB Mutual Funds


2013-2014 (As on 30 June, 2014)
2013-14 2012-13
Size
Name of
of fund Per certificate As on 30 June 2014 Per certificate As on 30 June 2013
Mutual (Tk
Funds crore)
Income Dividend Market Market Income Dividend Market Market
Tk Payment price per capitalization Tk payment price per capitalization
Tk certificate (Tk in crore) Tk certificate (Tk in crore)
Tk Tk
First 0.75 75.63 70 932 69.90 70.73 60 877 65.77
ICB
Mutual
Fund
Second 0.50 44.10 37.50 305.50 15.27 36.08 30 191.50 9.57
ICB
Mutual
Fund
Third 1.00 26.16 24 208.90 20.89 25.37 20 146.40 14.64
ICB
Mutual
Fund
Fourth 1.00 29.24 24 200 20 24.35 18.50 147.80 14.78
ICB
Mutual
Fund
Fifth 1.50 23.45 20 193.10 28.97 22.84 17 133.60 20.04
ICB
Mutual
Fund
Sixth 5.00 10.99 10.50 61.30 30.65 11.98 10 48.70 24.35
ICB
Mutual
Fund
Seventh 3.00 13.53 12 112 33.60 14.79 11 88 26.40
ICB
Mutual
Fund
Eighth 5.00 12.47 11 68.40 34.20 12.79 10 59.60 29.80
ICB
Mutual
Fund

38
Table No: 4.1 Comparative Performance of ICB Mutual Funds 2013-2014 (As on 30
June, 2014)
Source: Annual report ICB 2013-14

4.3 Portfolio Position (as on 30 June 2014)


Name of the Fund Cost of Market Value Market No. of
Portfolio of the price Per Certificate-
(Tk. in lac) Portfolio Certificate holders
(Tk. in lac) (Taka)
1st ICB Mutual Fund 1610.49 7377.15 932 815
2nd ICB Mutual Fund 975.67 1733.82 305.50 858
rd
3 ICB Mutual Fund 1118.53 2750.74 208.90 1202
th
4 ICB Mutual Fund 1191.65 2711.61 200 1378
th
5 ICB Mutual Fund 1534.52 3502.32 193.10 2126
th
6 ICB Mutual Fund 2052.96 3524.87 61.30 5154
th
7 ICB Mutual Fund 2107.93 3869.62 112 2471
th
8 ICB Mutual Fund 2507.33 4211.44 68.40 5795
Total 13099.08 29681.57 19799
Table No: 4.2 Portfolio Position (as on 30 June 2014)
Source: ICB Annual report 2013-14

4.4 Operational Results (2012-13)


Name of the Fund Net income Distributable income Ex-dividend Net
per certificate per Certificate as on Asset Value per
for the year 30 June 2013 certificate
2012-13 (Taka) (Taka)
(Taka)
1st ICB Mutual Fund 75.63 161.71 872.30
2nd ICBMutual Fund 44.10 90.14 215.61
3rd ICB Mutual Fund 26.16 61.55 211.16
4th ICB Mutual Fund 29.24 66.33 205.24
5th ICB Mutual Fund 23.45 46.79 168.92
6th ICB Mutual Fund 10.99 20.53 49.64
7th ICB Mutual Fund 13.53 29.87 86.60
8th ICB Mutual Fund 12.47 25.99 59.07

Table No: 4.3 Operational Results (2012-13)


Source of ICB Annual report 2013-14

39
4.5 Dividend performance (Tk. per Certificate)

Mutual Funds Financial Years


2009-10 2010-11 2011-12 2012-13 2013-14
st
1 ICB Mutual Fund 310.00 400.00 500.00 600.00 700.00
2nd ICB Mutual Fund 95.00 200.00 250.00 300.00 375.00
3rd ICB Mutual Fund 85.00 140.00 185.00 200.00 240.00
4th ICB Mutual Fund 80.00 125.00 165.00 185.00 240.00
5th ICB Mutual Fund 56.00 100.00 135.00 170.00 200.00
6th ICB Mutual Fund 37.00 75.00 90.00 100.00 105.00
7th ICB Mutual Fund 35.00 70.00 95.00 110.00 120.00
8th ICB Mutual Fund 32.00 65.00 90.00 100.00 110.00

Table No 4.4 Dividend performance


Source: ICB Annual report 2013-14

4.6 Consolidated Position of Portfolios of ICB Mutual


Fund
(As on 30 June 2014)
S Particulars 1st ICB 2nd 3rd ICB 4th
ICB 5th ICB 6th ICB 7th ICB 8th
l. Mutual ICB Mutual Mutual Mutual Mutual Mutual ICB
n Fund Mutual Fund Fund Fund Fund Fund Mutual
o Fund Fund
.
1 No. of 154 156 170 170 189 225 214 207
companies
2 No. of 56360 441541 5479324 5231113 661107 831631 10022408 104582
Securities 77 1 4 3 84

3 Total 1610.4 975.67 1118.53 1191.65 1534.52 2052.96 2107.93 2507.3


investmen 9 3
t at cost
(Tk. in
lac)
4 Market 7377.1 1733.8 2750.74 2711.61 3502.32 3524.87 3869.6 4211.4
Value 5 2 2 4
(30 June
2014)
Table No 4.5 Consolidated Positions of Portfolios of ICB Mutual Fund
Source: ICB Annual report 2013-14

40
4.7 Formula used for Evaluation:
Average price= (Year high price+ year low price)/2
Pay-out Ratio= {Dividend per share (DPS)/Earnings per share (EPS)}100
Dividend Yield Ratio= {Dividend per certificate (DPC)/ Market price per
certificate (MPC)}100
Changing dividend % = (current year dividend previous year dividend)/ value
of previous year100
Growth Rate (Based Year) = {Value of current year value of previous year}
100
Net Asset = Total Assets Total liabilities.
Expense Ratio = Total Expense/ Net Assets.
Price- Earning (P/E) Ratio = (MPC/EPC)
Dividend pay-out Ratio = (DPC/EPC) 100
Return on Assets = Net Income/ Total Assets
Return on Equity = Net Income/Shareholders Equity
Net Profit Margin = Net Income After Tax/Total Operating Revenue
Equity Multiplier = Total Assets/ Total Equity Capital
Current Ratio = Current Assets/ Current Liability

41
4.8 Ratio Analysis:

4.8.1 Tables and Graph used for Profitability Ratio:

1. Return on Assets (ROA):


Table No 4.6
Name Mutual Fund 2010 2011 2012 2013 2014
1st ICB Mutual Fund .36% .33% .29% .28% .27%
2nd ICB Mutual Fund .37% .34% .28% .27% .25%
3rd ICB Mutual Fund .35% .32% .27% .26% .23%
4th ICB Mutual Fund .34% .31% .25% .24% .22%
5th ICB Mutual Fund .33% .30% .23% .23% .21%
Source: ICB Annual report

Graph No 4.1

Source: ICB Annual report

Findings: From the above data table and graph we see that the Return on Asset (ROA) is
decreasing year by year. That means if someone investment on certain asset and if at the
end of the year its Net Income increase then the ROA will increase and if the NI decrease

42
the ROA will also decrease. From graph we see that the ROA of all mutual funds is
getting down year by year, it is very bad sign for both Mutual Fund as well as investors.

2. Return on Equity (ROE):


Table No 4.7
Name Mutual Fund 2010 2011 2012 2013 2014
1st ICB Mutual Fund 5.25% 6.59% 8.79% 9.10% 10.02%
2nd ICB Mutual Fund 7.33% 7.22% 7.20% 11.89% 11.20%
3rd ICB Mutual Fund 8.22% 8.11% 9.33% 8.04% 13.28%
4th ICB Mutual Fund 10.01% 9.33% 10.22% 7.44% 14.29%
5th ICB Mutual Fund 10.22% 10.22% 11.22% 6.33% 15.88%
Source: ICB Annual report

Graph No 4.2

Source: ICB Annual report

Findings: According to the data table and graph we see that the ROE of all mutual funds
are strongly volatile except 1st mutual fund. In 2014 the ROE of all mutual funds are high
but, in 2013 that was very low. Exceptionally 1 st mutual funds ROE increase at steady
rate.

43
3. Net Profit Margin:
Table No 4.8
Name Mutual Fund 2010 2011 2012 2013 2014
1st ICB Mutual Fund .33% .45% .48% .52% .55%
2nd ICB Mutual Fund .32% .38% .42% .45% .49%
3rd ICB Mutual Fund .34% .37% .40% .43% .46%
4th ICB Mutual Fund .35% .39% .42% .44% .46%
5th ICB Mutual Fund .35% .37% .43% .46% .50%
Source: ICB Annual report

Graph No 4.3

Source: ICB Annual report

Findings: We know Net Profit Margin is equal to Net Income after Tax by Total
Operating Revenue. If the NPM increase that is good for both company and investors
but, if NPM decreases or has trend NPM carve downward sloping that indicate a
alarming sign to the company as well as to the investors, who already invested or want to
invest. According to the above data table and graph we see that the Net Profit Margin
(NPM) of 1st, 2nd, 3rd, 4th and 5th mutual funds are increasing from 2010 to 2014. This
trend is good sign for ICB Mutual Fund as well as investors; if they invest I hope they
will get a smart return.

44
4. Earnings per Certificate
Table No: 4.9
Name Mutual Fund 2010 2011 2012 2013 2014
1st ICB Mutual Fund 80.22 90.33 102.88 146.08 161.71
2nd ICB Mutual Fund 50.22 55.99 66.20 76.04 90.14
3rd ICB Mutual Fund 35.22 40.22 44.38 55.39 61.55
4th ICB Mutual Fund 30.44 35.55 45.29 55.59 66.33
5th ICB Mutual Fund 20.99 25.44 30.22 40.34 46.79
Source: ICB Annual report
Graph No 4.4

Source: ICB Annual report

Findings: Earning per Certificate means that how much mutual fund is earning from a
particular certificate within a year. When earnings per certificate goes up it is good, but
when it goes down it became bad for the fund.

The ratio of all Mutual funds has increased in 2011, 2012, 2013 & 2014 from the year
2010. From the investors point of view, if EPC increase, dividend per share will increase
& the investors will be benefited from both capital gain & dividend. But, if EPC
decreases then price per certificate will decrease, dividend per share will decrease & it
will be bad for the investors.
From the funds point of view, increase of EPC is also good because the investors will
have confidence on the fund & management team for their efficiency on the maintenance
of the portfolio. If EPC decrease then it is bad because investors will have no confidence
on the fund & management team.

45
5. Return on Investment Ratio

Table No 4.10
Name Mutual Fund 2010 2011 2012 2013 2014
1st ICB Mutual Fund 25.66% 29.55% 32.44% 40.58% 52.44%
2nd ICB Mutual Fund 14.44% 16.77% 18.55% 22.40% 24.30%
3rd ICB Mutual Fund 16.33% 20.44% 24.09% 28.66% 33.13%
4th ICB Mutual Fund 14.55% 18.33% 21.33% 25.28% 28.01%
5th ICB Mutual Fund 14.33% 19.44% 24.84% 26.84% 26.00%
Source: ICB Annual report

Graph No 4.5

Source: ICB Annual report

Findings: Here we see that, in every mutual funds return on investment except 5th
mutual fund has increased in 2011, 2012 & 2013. 5 th mutual fund has increase up to 2013
but it decreased in 2014. It is a very good scenario. Every company wants to maximize
the return on investment. So from the above analysis we can find the result that investors
can get investment return from investing in 1st, 2nd, 3rd, and 4th mutual funds. And 1st
mutual fund still has confutation so investors should avoid it because it has little risk.

4.8.2 Tables and Graph used for Market value Ratio:

46
6. Price Earnings Ratio
Table No: 4.11
Name Mutual Fund 2010 2011 2012 2013 2014
1st ICB Mutual Fund 3.00 3.50 4.25 6.03 5.76
2nd ICB Mutual Fund 1.80 1.95 2.05 2.50 3.39
3rd ICB Mutual Fund 1.80 1.90 2.02 2.73 3.39
4th ICB Mutual Fund 1.80 2.00 2.10 2.66 3.02
5th ICB Mutual Fund 2.30 2.50 2.68 3.39 4.13
Source: ICB Annual Report

Graph No 4.6

Source: ICB Annual report

Findings: It means the ratio of price over earning when P/E ratio is higher, it indicate the
better condition of the firm & if it falls down, it means the performance of the company
is not good. We see that all P/E ratios are flowing down. Lower P/E ratio is good for the
investors because they will get back their investment through earnings within less time.
On the other hand, higher P/E ratio is not good for the investors, because they will get
back their investment through earning within more time. According to the above data
table and graph we can see that the P/E ratio of 1 st mutual fund is increasing from 2010
to 2013 but, it is fall in 2014. Investors should not invest on it now. 2 nd, 3rd and 4th mutual
funds were stable from 2010 to 2012 but suddenly they moved up and I think investors
take a bit of risk to invest on 2nd & 3rd mutual fund. P/E ratio of 4th & 5th mutual funds are
increasing year by year that means ICB 4th & 5th Mutual are doing well but at the same
time P/E ratio are already high that is way investors should avoid to invest.
7. Dividend per Certificate
Table No: 4.12
Name Mutual Fund 2010 2011 2012 2013 2014
1st ICB Mutual Fund 300 400 500 600 700
2nd ICB Mutual Fund 200 225 250 300 375
47
3rd ICB Mutual Fund 130 150 159 200 240
4th ICB Mutual Fund 120 150 170 185 240
5th ICB Mutual Fund 100 130 150 170 200
Source: ICB Annual report
Graph No 4.7

Source: ICB Annual report

Findings: DPC means that how much dividend a mutual fund is declaring against per
certificate for a particular period. If the DPC goes up then it is good for the fund & if
DPC goes down then it is bad for the fund.
We see that 1st mutual fund declared highest rate of dividend i.e., Tk. 700 per certificate
and 2nd mutual fund declared dividend i.e., Tk. 375 per certificate. 1 st and 2nd mutual
funds are good. Whereas dividend per certificate of 3 rd, 4th, & 5th are low. In 2014 the 1st
Mutual fund highest rate Tk. 700 & the 5 th Mutual fund are lowest rate Tk. 200.Then 2 nd
and 4th mutual funds are good, at the same time 3rd and 5th are low.

8. Dividend Pay-out Ratio (%)

Table No: 4.13


Name Mutual Fund 2010 2011 2012 2013 2014
1st ICB Mutual Fund 350.11 370.44 400.10 410.73 432.87
2nd ICB Mutual Fund 230.11 250.22 290.39 394.53 416.02
3rd ICB Mutual Fund 280.33 320.11 345.66 361.08 389.93
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4th ICB Mutual Fund 250.33 280.11 310.35 332.79 361.83
5th ICB Mutual Fund 300.33 350.22 415.44 421.42 427.44
Source: ICB Annual report

Graph No: 4.8

Source: ICB Annual report

Findings: Dividend payout ratio is the percentage of dividend per certificate distributed
to the shareholders against earnings per certificates. If dividend payout ratio is low, then
generally it is good for the mutual fund because, the fund may reinvest the earnings,
which is not distributed to the securities. But it depends on industry-to-industry and other
factors, such as funds income or its dividend policy.

The dividend payout ratio of 3rd and 4th mutual funds is low. It is good because size of
the above two funds are small compares to other funds and can invest in securities
without much borrowing costly capital. On the other hand, dividend payout ratio of 1 st,
2nd, & 5th mutual funds are high.

9. Dividend Yield Ratio (%)

Table No 4.14
Name Mutual Fund 2010 2011 2012 2013 2014
1st ICB Mutual Fund 50.11 55.22 60.20 68.03 75.11
2nd ICB Mutual Fund 100.33 160.33 170.46 157.89 122.75
3rd ICB Mutual Fund 100.77 146.22 144.39 132.45 114.89
4th ICB Mutual Fund 100.66 120.11 140.13 125.17 120.00
5th ICB Mutual Fund 100.66 120.55 135.33 124.36 103.57

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Source: ICB Annual report

Graph No: 4.9

Source: ICB Annual report

Findings: It evaluates the shareholder return in relation to the market value of the share.
The investors always will show his/her interest the share, which dividend yield is high.
We say that 1st Mutual fund lowest rate Tk. 75.11, 68.03, 60.20 & the 3rd Mutual fund
are higher rate Tk. 114.89, 132.45, and 146.22. Then dividend yield is good.

10. Market Price per certificate:

Table No 4.15
Name Mutual Fund 2010 2011 2012 2013 2014
1st ICB Mutual Fund 600.33 650.00 725.00 882.00 932.00
2nd ICB Mutual Fund 100.33 120.44 150.00 190.00 305.50
3rd ICB Mutual Fund 90.44 100.22 120.30 151.00 208.90
4th ICB Mutual Fund 90.22 100.10 120.50 147.80 200.00
5th ICB Mutual Fund 90.11 98.22 106.44 136.70 193.10
Source: ICB Annual report

50
Graph No: 4.10

Source: ICB Annual report

Findings: If the market price of a certificate increases, then the investors automatically
expect high dividend or they may make gain from selling that certificate.
So, the market price of a certificate of a fund is very important for the investors. Because
it shows the future growth, the investors are confident on the fund. From the above data
table we can see that 1st mutual funds price growth is slow about 55% at the same time
the market price growth of 2nd is too first. Its indicate us that 2nd fund will have chance to
hive higher capital gain with the risk of price fall. But, 1 st mutual fund has steady price
growth and it has capacity for high capital gain in long run.

11.Growth Rate of Market Value (%)

Table No 4.16
Name Mutual Fund 2010 2011 2012 2013 2014
1st ICB Mutual Fund 4.55 6.33 8.25 10.25 -11.64
2nd ICB Mutual Fund 5.05 5.77 7.30 8.77 9.36
3rd ICB Mutual Fund 9.03 10.22 13.05 18.07 25.09
4th ICB Mutual Fund 12.33 14.55 16.59 22.49 27.92
5th ICB Mutual Fund 7.22 9.08 10.33 11.58 15.03
Source: ICB Annual report

Graph No 4.11

51
Source: ICB Annual report

Findings: Market value means the fund is valued how much in the market. It is
determined through demand & supply.
If the market value goes up it is better for the fund & whom it is down, it is bad for the
fund. And I can see that the 1st mutual fund is doing a low performance because it has
very low market value whereas 4th mutual funds market value is going higher per year.

12. Market Value of Mutual Funds

Table No 4.17
Name Mutual Fund 2010 2011 2012 2013 2014
1st ICB Mutual Fund 5500.30 5533.77 6050.30 8349.16 7377.15
2nd ICB Mutual Fund 1168.44 1277.44 1326.33 1585.47 1733.82
3rd ICB Mutual Fund 1433.32 1677.44 1749.55 2199.03 2750.74
4th ICB Mutual Fund 1255.33 1568.55 1666.33 2119.70 2711.61
5th ICB Mutual Fund 2055.44 2277.33 2544.39 3044.68 3502.32
Source: ICB Annual report

Graph No 4.12

52
Source: ICB Annual report

Findings: Except 2nd, 3rd, 4th and 5th mutual funds 1st mutual fund is fall down in 2014
from 2013. 3rd, 4th, and 5th mutual funds are raised much than 2 nd mutual fund in 2014
from 2013. At the same time 1st mutual fund huge falls down in 2014 from 2013. So, I
would like to suggest to the investors to invest in 3rd or 4th or 5th mutual funds or they can
select all mutual funds.

4.8.3 Tables and Graph used for Liquidity ratios:

13. Equity Multiplier:


Table No 4.18
Name Mutual Fund 2010 2011 2012 2013 2014
1st ICB Mutual Fund 10.48 8.22 9.95 7.69 8.16
2nd ICB Mutual Fund 11.48 8.29 6.79 8.16 8.60
3rd ICB Mutual Fund 16.12 15.40 12.13 12.07 14.10
4th ICB Mutual Fund 19.16 18.79 14.45 13.79 14.36
5th ICB Mutual Fund 20.66 18.00 16.33 15.90 14.88
Source: ICB Annual report

Graph No 4.13

53
Source: ICB Annual report

Findings: Equity Multiplier is the ratio of Total Assets by Total Equity Capital. It is not a
good indicator for investment when Equity Multiplier of such share or mutual fund
increases. But it is good sign if the Equity Multiplier decreases. So from the above
analysis we find that Equity Multiplier of 1st, 2nd, 3rd, 4th and 5th mutual fund decreases
according from 2010 to 2014. But the decreasing rate of 1st and 2nd are high and, it is high
time for investment in 1st and 2nd mutual fund, and we hope a high return from their
investment.

14. Current Ratio:

Table No 4.19

Name Mutual Fund 2010 2011 2012 2013 2014


st
1 ICB Mutual Fund 2.60 4.66 3.66 2.94 2.00
2nd ICB Mutual Fund 2.40 4.05 1.63 1.67 1.93
rd
3 ICB Mutual Fund 2.20 3.77 2.01 2.02 1.54
th
4 ICB Mutual Fund 2.00 3.44 1.74 1.78 1.33
5th ICB Mutual Fund 1.80 3.01 1.53 1.60 1.22
Source: ICB Annual report

Graph No 4.14

54
Source: ICB Annual report

Findings: In 2011, Current Ratio of 1st, 2nd, 3rd, 4th and 5th mutual fund is higher
comparative to the other years. Only 1st mutual fund is decreasing from 2012 to 2014 but
others are in vulnerable position that is one year increases and next year decreases

4.9 SWOT Analysis of ICBs Mutual Fund:


SOWT Analysis is the detailed study of an organizations exposure and potential in
perspective of its strength, weakness, Opportunity & threat. Tins facilities the
organization to make their existing line of performance and also foresee the future to
improve their performance in comparison to their competitors. As through this tool, an
organization can also study its current position, it can also be considered as an important
tool for making change in the strategic management of the organization. The respondents
for this survey have been selected from the ICB mutual fund offices and from other
investors who want to involve in the Mutual Funds. Therefore, this study expected to
yield good outcomes in respect to the objective fulfillment.

55
SWOT

Internal External

Strength Weakness Opportunit Threat


y

Figure: SWOT Analysis

Strengths: attributes of the person or company that is helpful to achieving the


objective.
Weaknesses: attributes of the person or company that is harmful to achieving the
objective.
Opportunities: external conditions that is helpful to achieving the objective.

Threats: external conditions which could do damage to the objective.

Strengths of ICBs Mutual Fund:


Credit Quality: ICB has in the credit portfolio good exposure. The practice of
credit culture has ensured quality assets in its balance sheet.
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Experience sponsors: Shareholder has arrived from respectable family well
established business house insurance company; Leading industrialists are also in
sponsorship at ICB. The paid up capital at ICB is largest in the industry among
the investment company.
Strong management: ICB has the backing at a strong financial management
group who advice on various management issues. Beside people with rich
financial back ground are managing the day to day affairs at the company.
The company surpassed all the previous records in its key areas like asset growth,
profitability growth and return to asset
Strong research & development.
Ability to manage Strategic change.
Skill portfolio management.

Weaknesses of ICBs Mutual Fund:


Poor Recovery of rental dues: The Company is suffering gradual in recovering
its rental dues. If this continues its may face fund crisis.
Low rate of dividend declared by the organization.
Growth without direction.
Weak network
Bureaucratic Practice.
Customer service is not so enough. They dont give enough time to deal with
customers and clients.
Short of space in the office for work and service.

Opportunities of ICBs Mutual Fund:


Diversified revenue flow: Diversifying its product can be a good opportunity.
Besides offering existing product, other activities can be funds management,
merchant banking activities & other financial advisory services.
Technological Change: Offers can be computerized to increase the efficiency of
its operation.
Financial on small & mid level enterprise: Long term & medium term project
loans, short term working capital loans & financing for the establishment &
expansion of macro small & medium enterprise in the private sector can be cat
analysis to the profitability of ICB.
Government tries boost up capital market.
The growth of mutual fund represents institutionalization of a development
country.

57
Threats of ICBs Mutual Fund:
Economic Uncertainties: The economics of Bangladesh as well as that at the
Investment corporation is tied with that of the oversee. Rise in interest rate &
event like terrorist attacks are likely to affect the Bangladesh economic & the
margin of leasing companies.
Lack of the sufficient legal Framework: The lack of sufficient legal Framework
to penalize the defaulter of bouncing check its resulting in the decrease of
recovery rate at rental dues. Its high times to implement adequate.
Increase in private substitute competitor.
Increase in foreign competition.
There are no threats of the country. Because they have a competitors or rival.
Increases in private substitute competitor
Increase in foreign competition

58
CHAPTER- 5
RECOMMENDATIONS &
CONCLUSIONS

5.1 Recommendations
Recommendations are suggested on the basis of problems. There are:
Reserve should be kept at a minimum level. It may vary fund to fund but not
more than 25% of a funds income.
Dividend policy should be fair to all funds so that the investors may be satisfied.
Dividend policy should be earning basis, not year basis.
Investing by costly borrowing funds should be reduced. Management may look
for source of less costly funds & reduce expenses & increase income.
ICB may fix redemption date of each fund, it may redeem, 1 st, 2nd &3rd mutual
fund. Because, these funds are established for more than 15 years.

59
ICB may take initiative & decision to float more funds for the stabilization of
capital market & for gaining of investment confidence to invest in the capital
market.
Investment in any companys shares will need to proceed with conscious &
investors interest should be the first priority. Any decision which will affect the
interest the investors will not be complimented, though there are some external
pressures.
Unnecessary documentation & levels in the process of withdraw or securities
should be eliminated. For this computerization is needed & training is must.
More employees are recruited for better service & according to the skill &
education background of employee needs to be positioned.
Office of mutual fund has to establish within the head office of ICB.
Office curriculums have to be modernized.
Employees should set up proper positioned according their skill and educational
background.
To properly monitor and evaluate the mutual fund.

5.2 Conclusions:
ICB is a unique name in our country as an investment bank. It is playing a pivotal role to
develop the country's capital Market, ICB as the National Investment house, is the e
organization to per from the activities by creating demand for securities and on the other
hand to ensure the supply of securities in the Capital Market. ICB's investor's scheme
helps to boost up domestic economy through facilitating to invest into the capital market.
At a stage, this made an important effect on the capital market and excellent response
from the investor's. The floatation of mutual funds and issuance of unit certificates by the
ICB strengthens the supply of attractive securities in Bangladesh capital market. Mutual
fund management can manage the activities of mutual fund.
60
Mutual fund department should be innovative, explorative and dynamism. ICB should
specially emphasize on the operations and management of mutual fund because most of
the small investors are key clients of mutual fund.

So, ICB should concentrate to increase the performance of its mutual fund and way to
find out the path for overcoming the problems of operations.

We are quite optimistic that if the given recommendations of this paper are implemented
then ICB mutual fund may be able to overcome its present problems and may contribute
in the rapid development of Bangladesh capital market.

There remains a huge gap between institutional investors and general investors.
Institutional investors are far ahead from the general investors in respect of technical
know-how, knowledge and risk taking propensity. ICB as an institutional investor
manages its portfolio by doing three major activities: asset allocation, weighting shift
across major asset classes and securities selection within asset classes. In financial terms
it means ensuring maximum return with minimum level of risk. At present the gap
between the institutional investors and general investors, ICB should concentrate well in
portfolio management to uplift the interest of the general investors.

Bibliography

Sharpe, W.F. (1978), Investments (Englewood Cliffs), New Jersey: Prentice-Hall,


Inc).
Ahmed, MF. H.R. Khan and M.S Islam 1993, Industrial Financing through
Capital market in Bangladesh-A Study on the Demand Side (Dhaka: The Asian
Foundation and the Bureau of Economic research, University of Dhaka, June, P-
47.
Investment Corporation of Bangladesh (ICB) Annual Report (2010-2014)of ICB
Mutual Funds.
61
Investment Corporation of Bangladesh (ICB) Annual report of ICB AMCL
Mutual Funds.
www.icb.gov.bd.com
The Investment Corporation of Bangladesh ordinance 1976 (No. XL of 1976)
ICB general regulation.
Investment Corporation of Bangladesh (ICB) Annual report of ICB.

Acronyms

ICB Investment Corporation of Bangladesh


AGM Assistant General Manager
CML Capital Management Limited
AMCL Asset Management Company Limited
STCL Securities Trading Company Limited
NRB National Revenue Board
ICT Information & Communication Technology
EEF Equity and Entrepreneurship Fund
62
HRM Human Resource Management
CIP Cumulative Investment Plan
NAV Net assets value
SEC Securities & Exchange Commission
DSE Dhaka Exchange Limited
CSE Chittagong Stock Exchange
P/E Ratio Price Earnings Ratio
EPC Earning per Certificate
DPC Dividend per Certificate
ROA Return on Assets
ROE Return on Equity

63