FMI Main Report PDF

Contents
Chapter 1: Introduction...................................................................................................................................3
1.1 Importance of the Study ...............................................................................................................................4
1.2 Objectives of the Study.................................................................................................................................4
1.3 Scope of the report.......................................................................................................................................5
1.4 Sources and Methods of Data Collection .....................................................................................................5
1.5 Limitations of the Study................................................................................................................................5
Chapter 2: Overview of ICB Asset Management Company Ltd. ......................................................................7
2.1 Functions of Asset Management Company ..................................................................................................8
2.2 Business policy of the ICB Asset Management Company Ltd.: ....................................................................9
2.3 Vision and Mission of ICB Asset Management Company Ltd. ................................................................... 10
2.4 Management of ICB Asset Management Company Ltd.: .......................................................................... 10
2.5 Organization Manpower:........................................................................................................................... 11
2.6 Position in the Industry: ............................................................................................................................ 11
2.7 Departments of ICB ASSET MANAGEMENT COMPANY LTD.: .................................................................... 12
2.7.1 Personal department: ......................................................................................................................... 12
2.7.2 Human Resources department:.......................................................................................................... 13
2.7.3 Establishment department: ................................................................................................................ 13
2.7.4 Secretary’s department: ..................................................................................................................... 14
2.7.5 Public Relations department: ............................................................................................................. 14
2.7.6 Securities Reconciliation department: ............................................................................................... 15
2.7.8 Data Management department: ........................................................................................................ 15
2.7.9 Planning, Research & Business development department: ............................................................... 15
2.7.10 Central Accounts department: ......................................................................................................... 16
2.7.11 Fund management department: ...................................................................................................... 16
2.7. 12 Mutual Fund department: ............................................................................................................... 16
Data Management ........................................................................................................................................... 17
Data Analysis ................................................................................................................................................... 17
Chapter 3: Products of the AMCL ..................................................................................................... 18
3.1 Products ..................................................................................................................................................... 19
3.1.1 Bangladesh Fund ................................................................................................................................ 21
3.1.2 ICB Asset Management Company Ltd. AMCL Unit Fund .................................................................... 22
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3.1.3 ICB Asset Management Company Ltd. Pension Holders' Unit Fund .................................................. 23
3.1.4 ICB Asset Management Company Ltd. Converted First Unit Fund ..................................................... 24
3.1.5 ICB Asset Management Company Ltd. Islamic Unit Fund .................................................................. 24
3.1.6 Prime Finance First Mutual Fund........................................................................................................ 25
3.1.7 ICB ASSET MANAGEMENT COMPANY LTD. AMCL Second Mutual Fund............................................ 26
3.1.8 ICB Asset Management Company Ltd. Employees Provident Mutual Fund One ............................... 26
3.1.9 Prime Bank 1st ICB Asset Management Company Ltd. Mutual Fund ................................................ 27
3.2 Sources of Fund ......................................................................................................................................... 28
3.3 Mutual Fund of ICB ASSET MANAGEMENT COMPANY LTD.: .................................................................... 30
3.4 Background of conversion into open-end Scheme from close-end Mutual Fund .................................... 31
Chapter 4: Security Market, Business Performance and Service Perspective of AMCL ............ 34
4.1 ICB ASSET MANAGEMENT COMPANY LTD.’S ROLE IN THE SECURITIES MARKET ..................................... 35
4.2 Business Performance of ICB Asset Management Company Ltd. for the Year 2017-18 ........................... 35
4.2.1 Comparison of Dividend, Net Asset value and Earning per Share...................................................... 36
4.2.2 Operating Performance of ICB: .......................................................................................................... 37
4.2.3 Portfolio Growth of ICB: ..................................................................................................................... 38
4.3 Service perspective and evaluation of ICB Asset Management Company Ltd. ......................................... 40
Chapter 5: Company Valuation for investing Mutual Fund ......................................................................... 42
5.1 Fundamental Analysis:............................................................................................................................... 43
Chapter 6: SWOT Analysis & Risk Factor of ICB Asset Management Company Ltd. ................... 46
6.1 Analysis of SWOT ....................................................................................................................................... 47
6.2 RISK FACTORS ...................................................................................................................................... 49
Chapter 7: Findings & Recommendation ................................................................................................ 50
7.1 Findings:..................................................................................................................................................... 51
7.2 Recommendation: ..................................................................................................................................... 51
Chapter 8: Conclusion .................................................................................................................................. 53
APPENDIX............................................................................................................................................................. 55
BIBLIOGRAPHY ............................................................................................................................................... 56
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Chapter 1
Introduction
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1.1 Importance of the Study
We have got the opportunity to work in the ICB Asset Management Company Ltd, as a part of term
paper and presentation. It was time for us to get real life experience. Having understanding this we
decided to do our report in renowned organization as Investment Corporation of Bangladesh.
As we came to know that ICB Asset Management Company is an equity financer for the corporate
investors and only disburse long term finance, and play a vital role in capital market.
We decide to do report in ICB Asset Management Company. Practical knowledge is fundamental for
the application of theoretical intelligence. The Report is the evidence of effort and harmony between
practical and theoretical knowledge.
1.2 Objectives of the Study
The main objective of this study is to identify and familiarize with the objectives of the organization,
function and analyzed performance of ICB Asset Management Company in the capital Market and to
acquire the knowledge.
To acquire the knowledge ultimately we must do some practical applications in addition to theoretical
knowledge. Other objectives of this report are as follows:
 To evaluate and analyze the portfolio performance of ICB Asset Management Company
Ltd Mutual Fund
 To understand the operation and management of investment fund in Bangladesh.
 To know the role Investment Corporation of Bangladesh as the market maker
 To understand the activities and contribution of mutual funds in the capital markets.
 To obtain the knowledge about how the ICB Asset Management Company Ltd. Mutual Funds
are managed.
 To know how ICB Asset Management Company Ltd. play an important role in the capital market
 To know the performance of ICB Asset Management Company Ltd. by calculating different
ratios portfolio analysis.
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1.3 Scope of the report
This report covers ICB Asset Management Company Ltd.’s products and services, organizational
overview, management and organizational structural functions performed by ICB Asset Management
Company Ltd... It also covers overview of the Investment banking division, processes and other
function.
1.4 Sources and Methods of Data Collection
For the purpose of preparing this report, I have carefully observed all of the departments of ICB Asset
Management Company Ltd. and got some information from the responsible officers at certain
department. Sources of data collection are as follows:
a) Primary sources:
Primary sources data are those, which are collected from face to face discussion with the help of the
officials of various departments of ICB Asset Management Company Ltd. in charge.
b) Secondary sources:
Secondary sources of data include:
 Annual reports of ICB Asset Management Company Ltd.
 Daily Newspapers, journals and books & various write up of Economic & Business Research
Library.
 Monthly review of DSE & CSE.
 General Information.
 Materials & documents of ICB Asset Management Company Ltd.
 Bangladesh Bureau of Statistics.
1.5 Limitations of the Study
There were some difficulties, which I have faced in preparing this report. I have worked all the
departments of ICB Asset Management Company Ltd. one after another. ICB Asset Management
Company Ltd. is large corporation and therefore study time two months is too short to prepare a
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comprehensive report on the Mutual Fund & Unit Fund of ICB Asset Management Company Ltd. in
the Capital Market. Other constraints l has faced during the course of study are as follows:
 Secrecy of the official's
 Unavailability of relevant papers and documents.
 Insufficiency of necessary information.
 Relevant data sets, papers & documents were not available for us. These convey their inability
for not providing all materials.
 Our capital market is shallow & imperfect that is why various financial analyses cannot be
applied to judge the performance of ICB Asset Management Company Ltd.
 Insufficient supply of relevant books and journals.
 The departments are too much busy branch as for this to operate the survey on the basis of
questionnaire
 Field practice varies with the standard practice that also created problem.
 Time provided for conducting the study is another important constraint.
 The employees in ICB Asset Management Company Ltd. are so much busy in their responsible
fields; they could hardly provide little time to discuss with them.
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Chapter 2
Overview of ICB Asset
Management Company Ltd.
7
ICB Asset Management Company Ltd. a subsidiary of Investment Corporation of Bangladesh (ICB),
commenced its journey on 5th December, 2000 with the objective of professionally managing
investment funds. ICB Asset Management Company Ltd. was established as part of the restructuring
programed of ICB under Capital Market Development Programed (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. 100 crore
and a nominal paid up capital of Tk. 2.00 lac, which was subsequently increased to Tk. 39.38 crore,
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 Securities and Excghange Commission Mutual Fund Bidhimala 2001 to carry
out the mutual fund activities. The company started its operation from July 01, 2002 upon issuance of
Govt. gazette notification.
The Company offers different types of investment schemes where savings are pooled for investment in
the capital market. These schemes are designed to hand out best possible benefits to the investors at the
lowest possible risk. Investment in the securities market, for that matter any investment, carries risk.
But there are many techniques to reduce such risk.
The Company is managed by a group of experts who have the necessary skills, knowledge and aptitude
not only to handle risk but also to ensure optimum return taking into consideration the environment
prevailing in the market. ICB Asset Management Company Ltd... is in a unique position to handle risk-
return profile of an investment efficiently and prudently.
Anyone can let them manage their investments. IAMCL advise them to read and understand the
contents of each and every scheme offered by us before investing in those schemes.
2.1 Functions of Asset Management Company

1. Financial intermediation- Asset management companies provide professional investment
services. These are delivered in a number of ways, both tailored to the needs of individual clients and
through funds that are able to pool the assets of different investors.
Asset management companies offer their intermediary function not only to households, business firms
and governments, but also to the other categories of financial intermediaries, in particular pension funds
and insurance companies.
2. Portfolio management- Portfolio Management Services account is an investment portfolio in
Stocks, Debt and fixed income products managed by a professional money manager that can potentially
be tailored to meet specific investment objectives. Benefits of portfolio management services-
i) PMS gives investors access to an institutional process of money management.
ii) Wealth creation based on disciplined investment process is the crux of PMS.
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iii) Effective diversification helps reduce portfolio volatility and enhances risk-adjusted returns over
long term.
iv) PMS gives investor direct ownership of the individual securities in the portfolio.
3. Advisory services- An asset management company gives recommendations and suggestions

regarding investments; where to invest, when to invest, how to invest, when to sell securities, and so
on. Advisory investment managers may either provide asset management services on behalf of corporate
investment firms, or directly manage a client’s assets.
4. Designing various investment products and retirement plans- An asset management

company creates various investment products such as open ended fund and close ended fund. Also they
have many categories. An asset management company provides pension fund facility where pool of
fund is invested on the employee’s behalf, allowing the employee to receive benefits upon retirement.
5. Exercise due diligence- An asset management company should take all the reasonable step to
make sure that the investment made or managed by such AMC not to be contradictory to the provisions
of these regulation and trust deed i.e. between the AMC and trustee.
6. Compensation to affected investor- The AMC and the sponsor of the Mutual Fund shall be
liable to compensate the affected investors for any unfair treatment to them as a result of inappropriate
valuation.
7. Treating the customers fairly- The AMC must work solely keeping in mind the investor’s
interest. It is a huge responsibility on their shoulders as the investors put tons of money in their hands
expecting a good return on them. So they are bound to follow the ethical principles and regulations of
fair dealing.
2.2 Business policy of the ICB Asset Management Company Ltd.:

The Corporation has adopted a realistic business policy framework within which its operation is
conducted. The Corporation, in its operation, acts on commercial consideration with regard to the
interest of industry and commerce, investment climate, capital market, depositors, investors, and to the
public interest generally.
The operational policies of the Corporation are as follows:
 Assistance is provided to that enterprises/ institution which is in line with the development plans
of government. In case of the industrial projects preferences given to project oriented, import
substitution and to projects mainly based on local raw Martials and those be located in the less
developed areas of the country.
 Maintains the policy of diversification, as far as possible, both with regards to the location and
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types of industries.
 The Corporation does not generally seek any controlling interest in any of the enterprises
financed by it except when that becomes necessary and expedient in the interest of the
corporation and other shareholders.
 The corporation will not be guided exclusively by consideration of profit. It will keep the larger
interest of the market uppermost and will unload its holdings under conditions that do not disturb
the stability of the capital market.
2.3 Vision and Mission of ICB Asset Management Company Ltd.
Vision
Continue to be the leading, responsible and environment friendly financial institution operating in such
a way that fellow competitors and the society watch, acknowledge, admire and emulate ICB Asset
Management Company Ltd. as a successful and model organization in the industry.
Mission
 Transforming Corporation into a responsible institution, a financial architect and an innovative

solution provider and performance leader.
 Being a responsible institution created by law and act 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
2.4 Management of ICB Asset Management Company Ltd.:

The head office of the corporation as per the requirement of the ordinance of ICB Asset Management
Company Ltd. is located at Dhaka. The general direction and superintendence of the corporation is
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created in a board of directors, which consist of 12 persons including the chairman and managing
director of ICB Asset Management Company Ltd. The board of directors consists of the following
directors:
 The chairman to be appointed by the government.

 The directors to be appointed by the government from among persons serving under the
government.
 One director to be nominated by the Bangladesh Bank.
 Four other directors to be elected by the shareholders other than the government, BB, BSB, &
BSRS.
 The managing director is the chief executive of the corporation. The corporation has an
executive comprised of 5 people including managing director.

2.5 Organization Manpower:
During 2017-18, 10 officers and 20 supporting staff joined services of the Corporation at different
levels. Moreover, recruitment of 60 officers was under process. On the other hand 5 officers resigned
and 1 supporting staff retired from the services of the Corporation. During the period, 9 employees
including 2 supporting staff retired from the services of the Corporation and 1 employee died.
As per direction of the government, the retirement age of the freedom fighters has extended by 2 years
to 59 years. According to this direction retirement date of 5 employees of the Corporation has been
extended.
The total work force as on 30 June 2016 was 478 which were 464 on the same date of the previous year.
Out of 478 employees, 290 were officers and 188 were supporting staff. The total number of female
employees was 72 including 44 officers representing 15.06 per cent of the total manpower. During the
year, 6 officers and 7 supporting staff of the Corporation were promoted at different levels.
2.6 Position in the Industry:

Table: Company position in the Industry
SL Particulars Position
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1. Asset Management Top
2. Mutual Fund Management Top
3. Stock Market operation 1st /2nd since inception
4. Earning performance Best
5. Dividend performance Best (50% to 105% in last 5 years)
6. Customer base Largest
7. Infrastructure Investment Largest
8. Customer Service Modern & non-discriminating
9. Contribution to National Exchequer Largest among public sector institutions
10. Employee effectiveness & efficiency Highly satisfactory
11. Capital Adequacy Top
Source: (ICB ASSET MANAGEMENT COMPANY LTD., Partners in dynamic investment, 2017-18) partners in
dynamic investment (Annual Report2013-14).
2.7 Departments of ICB ASSET MANAGEMENT COMPANY LTD.:

2.7.1 Personal department:
The main functions of this department are:

 For making a well-trained administration must me selected the rules and regulation.
 Appoints the manpower in the corporation.
 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.
 Personnel’s give the facilities when they are going on retirement such as–gratuity, pension,
provident fund are processed and control the attendance.
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 To maintain the national salary scale, select the salary, pension, increasing the annual salary etc.
 The function which are related with the annual secret reports of the personnel’s.
 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.
 According to need, others functions which are given by administration.
2.7.2 Human Resources department:

 To give and complete the different steps of training for the officers/personnel’s in the
corporation.
 Inventing the foreign training and organize the training in the foreign countries.
 To organize the internal training for personnel.
 To organize the training for new appointed personnel.
 To maintain the official training center.
 To organize the seminar/workshop, symposium, if needed take specialist.
 To collect the training tools and give facilities of the trainee.
 To select the officer/personnel for attending the different type of important meeting, seminar
and workshop.
 According to need, others function given by administration.
2.7.3 Establishment department:
This department deal with purchases of office supplies, office equipment etc., also maintain the utility
services like telephone bill electricity bill etc. The cost of this department is divided into two categories
revenue cost and fixed cost. For fixed cost, depreciation is charged at straight-line method basis. There
are two purchase committees to accomplish the purchase. There remains a quality control committee to
examine the quality of the product purchased. For the purchase of the product, this department gives
tender notice to the listed supplies. Quality control committee is formed with two Deputy General
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Manager (DGM), one Assistant General Manager (AGM) and members from the Establishment
Department. In case of selling of scraps and wastage the tender offer in same way.
2.7.4 Secretary’s department:
 Arrange meetings of the Board of Directors, Executive Committee and other Committee.
 Communicate with the directors of the Corporation.
 Call board meeting.
 Prepare work schedule of directors meeting and collect signature of the Chairman.
 Send work schedule to Govt. and board of directors.
 Send decisions of the meetings for implementation of concerned department.
 Maintain attendance registers of directors.
 Preserve the registration of shareowners.
 Share transfer, transmission, split, issue duplicate share and dividend warrant.
 Call Annual General Meeting.
 Select directors.
 Send work schedule of AGM to Govt. and other directors of corporation.
 Distribution of dividend to the shareowners.
 Communicate with shareowners.
 Function related to issuance of right share of corporation.
2.7.5 Public Relations department:
 Maintain close liaisons with the Ministry of Finance and other concerned officers.
 Help publish all types of official advertisements.
 Furnish management with the relevant newspaper cuttings.
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 Help focusing ICB asset Management Company through mass media.
 Meet all adverse comments about the Corporation published in Different newspapers and
periodicals.
 Publish internal newsletter or journal.
2.7.6 Securities Reconciliation department:
This department is involved in reconciliation of the securities if any discrepancy rises among the settle
number of securities and the balance of the ledger. In case of sale concern department go through by
the help of shares department for the conformation of physical existence of shares.
2.7.8 Data Management department:

The following are the functions of this department are:
 Handling peak load of data entry and data processing work for all other department of ICB asset
Management Company 
 Any other assignment given by the management.
2.7.9 Planning, Research & Business development department:
This department has a basic decision making function for the organization. The major functions of this
department are:
 To make the portfolio management decision in favor of the organization as well as small
investors.
 Conduct meeting of the securities purchase and sales committee.
 Convey securities sales or purchase decision to the merchandising division.
 Perform all activities related to South Asian Development Fund (SADF).
 Manage the business development cell, which is established to explore the possibility of business
diversification.
 Maintain liaison with ministry of finance, Bangladesh Bank and provide ICB Asset Management
Company Ltd. related information to interested parties.
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2.7.10 Central Accounts department:
All kinds of receipts and payments of ICB Asset Management Company Ltd. are done by the Central
Accounts department. The bill of all departments end destination is account department. Account
department holds and maintain all separately. For this reason adjustment and rectification of any
transaction of all departments become easier to this department. The functions of this department are
to:
 Prepare income tax return and matters relating to accounts.

 Prepare bills including projects accounts and maintenance of project accounts.
 Prepare salary statement, overtime statements etc.
 Prepare final accounts.
 Keep accounts of Unit and Mutual Funds.
 Maintain liaison with external audit and commercial audit.
 Maintenance of investor’s accounts and portfolio ledgers
2.7.11 Fund management department:
The main works of this department are:

 Manage overall fund of the corporation.
 Different organization provided FDR
 Different organization taken TDR
 Handle the legal issues related to employee’s loan facilities and other issues related to law
2.7. 12 Mutual Fund department:

Investment Corporation of Bangladesh (ICB Asset Management Company Ltd.) has so far floated eight
close and Mutual Funds. The first Mutual Fund was floated on 25 th April 1980 while the eight ICB
Asset Management Company Ltd. Mutual Fund was floated in 10th August 1996.
Broadly the functions of Mutual Funds department consist of:
 Act as manager of all Mutual Funds.
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 Maintenance of ledger with the name, address and number of certificates along with distinct
folio number for each Mutual Fund separately.
 Verify the signature of the holder in the 117 forms.
 Preparation of dividend list from the ledger position.
 Issue dividend warrants to the holders of the certificates.
 Distribution of final dividend warrants to the certificate holders after completing necessary
formations.
 In case of change of ownership of Mutual Funds certificate holder facilities the transfer process.
 Make arrangement for re-issue or duplicate copy of certificate in case of loss or damages of
certificates.
 Receiving application for the change of address, correction of names and forwarding the same
to the computer department.
 Arrange for splitting the share scraps as and when necessary in accordance with the Stock
Exchange Rules.
 Arrange for revalidating the date of payment of dividend on Dividend Warrants.
Data Management
For the analysis purpose time series data has been used. All performance based on ICB Asset
Management Company Ltd. previous five year data. The DSE General Index has been taken as
benchmark for performance evaluation. And T-Bill rate has taken for Risk-Free rate.
Data Analysis
The research is based on quantitative study. The main focus of the study is risk and return analysis. The
liquidity indicator, the profitability indicator, the solvency indicator, equity indicator has taken to
evaluate its performance and prospect
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Chapter 3
Products of the AMCL
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3.1 Products
ICB Asset Management Company Ltd. Asset Management Company Ltd. is a subsidiary of
Investment Corporation of Bangladesh (ICB Asset Management Company Ltd.). The Company
was created as a part of the restructuring programed of ICB ASSET MANAGEMENT COMPANY
LTD. under Capital Market Development Programed (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.
1.00 billion and a paid up capital of Tk. 393.80 million under the Companies Act, 1994 with the
registrar of Joint Stock Companies and Firms on 5 December, 2000. The Company obtained license
on 14 October, 2001 from the Securities and Exchange Commission under Securities and Exchange
Commission (Mutual Fund) Rules, 2001 to carry out the mutual fund activities.
These products are as follow:
1) Open Ended Fund
(a) ICB Asset Management Company Ltd. Pension Holder’s Unit Fund
(b) Bangladesh Fund
(c) ICB Asset Management Company Ltd. Converted First Unit Fund
(d) ICB Asset Management Company Ltd. Islamic Unit Fund
(e) First ICB Asset Management Company Ltd. Unit Fund
(f) Second ICB Asset Management Company Ltd. Unit Fund
(g) Third ICB Asset Management Company Ltd. Unit Fund
(h) Fourth ICB Asset Management Company Ltd. Unit Fund
(i) Fifth ICB Asset Management Company Ltd. Unit Fund
(j) Sixth ICB Asset Management Company Ltd. Unit Fund
(k) Seventh ICB Asset Management Company Ltd. Unit Fund
(l) Eighth ICB Asset Management Company Ltd. Unit Fund
(m) ICB Asset Management Company Ltd. Second NRB Unit Fund
(n) ICB Asset Management Company Ltd. unit Fund
2) Closed Ended Mutual Fund

a) Prime Finance First Mutual Fund
b) ICB Asset Management Company Ltd. Second Mutual Fund
c) ICB Asset Management Company Ltd. Employees Provident Mutual Fund One : Scheme
One
d) Prime Bank 1st ICB Asset Management Company Ltd. Mutual Fund
e) Phoenix Finance 1st Mutual Fund
f) ICB Asset Management Company Ltd. Third NRB Mutual Fund
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g) IFIL Mutual Fund-1
h) ICB Asset Management Company Ltd. Sonali Bank Limited 1st Mutual Fund
i) ICB Asset Management Company Ltd. First Agrani Bank Mutual Fund
The Net Asset Value (NAV) of the Open Ended Mutual Funds (Year End 30 June) as on 25
Jun, 2019 is enumerated below:
The Net Asset Value (NAV) of the Open Ended Mutual Funds (Year End 31 December) as
on 02 Jul, 2019 is enumerated below:
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The Net Asset Value (NAV) of the Closed Ended Mutual Funds as on 02 Jul, 2019 is
enumerated below:
Basics facts of the open-end and close-end mutual fund are given below:
3.1.1 Bangladesh Fund
Fund Highlights
01 Name Bangladesh Fund
02 Sponsors Investment Corporation of Bangladesh, Sonali Bank Limited,

Janata Bank Limited Agrani Bank Limited
Bangladesh Development Bank Limited Rupali Bank Limited
03 Trustee ICB Asset Management Company Ltd. Capital Management

Limited
04 Custodian ICB Asset Management Company Ltd. Capital Management

Limited
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05 Asset Manager ICB Asset Management Company Ltd. Asset Management
Company Limited
06 Initial Size of the Tk. 5,000,00,00,00000 (five thousand crore) divided into 50, 00,
00,000(fifty crore) units at par value of Tk. 100.00 (one
Fund
hundred) each.
07 Face Value Tk. 100.00 (one hundred) per unit
08 Dividend for FY Tk. 6.00 per unit

2017-18
09 Net Asset Value At cost price Tk. 117.20

(NAV) As on At market price Tk.93.25
30.06.2018
10 Earning Per Unit Tk. 6.64

(As on 30.06.2018)
3.1.2 ICB Asset Management Company Ltd. AMCL Unit Fund
Fund Highlights
01 Name ICB Asset Management Company Ltd. Unit Fund
02 Trustee & Custodian Investment Corporation of Bangladesh (ICB Asset Management

Company Ltd.)
03 Types of the Fund Open-end Mutual Fund
04 Size (As on 30-06- Tk. 350.00 crore

2018
05 Face Value Tk. 100.00 per unit

2017-18
22
(NAV) as on 30-06- At market price Tk. 222.78
2018

(As on 30.06.2018)
3.1.3 ICB Asset Management Company Ltd. Pension Holders' Unit Fund
Fund Highlights
01 Name ICB Asset Management Company Ltd. Pension Holders' Unit

Fund
02 Trustee & Custodian Investment Corporation of Bangladesh (ICB Asset Management

Company Ltd.

2018

2017-18

2018

(As on 30.06.2018)
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3.1.4 ICB Asset Management Company Ltd. Converted First Unit Fund
Fund Highlights
01 Name ICB ASSET MANAGEMENT COMPANY LTD. AMCL

Converted First Unit Fund
02 Trustee & Custodian Investment Corporation of Bangladesh (ICB ASSET

MANAGEMENT COMPANY LTD.
04 Size (As on 30-06- Tk. 70 crore

2018

2017-18

2018

(As on 30.06.2018)
3.1.5 ICB Asset Management Company Ltd. Islamic Unit Fund
Fund Highlights

Islamic Unit Fund

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04 Size (As on 30-06- Tk. 80 crore
2018

2017-18

2018
08 Earning Per Unit Tk. 0.82 per unit

(As on 30.06.2018)
3.1.6 Prime Finance First Mutual Fund
FUND HIGHLIGHTS
01 Name Prime Finance First Mutual Fund

03 Types of the Fund Close-end Mutual Fund of 10 years tenure

2018

2017-18

2018
25
(As on 30.06.2018)
09 Market Lot 500 units
3.1.7 ICB ASSET MANAGEMENT COMPANY LTD. AMCL Second Mutual

Fund
FUND HIGHLIGHTS

Second Mutual Fund


2018

2017-18

2018

(As on 30.06.2018)
09 Market Lot 500 units
3.1.8 ICB Asset Management Company Ltd. Employees Provident Mutual Fund One
Fund Highlights
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01 Name ICB ASSET MANAGEMENT COMPANY LTD. Employees
Provident Mutual Fund One


2018

2017-18

2018

(As on 30.06.2018)
3.1.9 Prime Bank 1st ICB Asset Management Company Ltd. Mutual Fund
Fund Highlights
01 Name Prime Bank 1st ICB ASSET MANAGEMENT COMPANY

LTD. AMCL Mutual Fund

04 Size (As on 30-06- Tk.100.00 crore

2018
27
06 Dividend for FY Tk. 0.70
2017-18

2018

(As on 30.06.2018)
3.2 Sources of Fund

The internal sources of fund of ICB ASSET MANAGEMENT COMPANY LTD. Asset
Management Company Limited (AMCL) are:
Particular Value (BDT in Million)
Paid-up Capital 393.75
Reserve 1512.99
Retained profit 1470.70
Total 3376.88
The external sources of fund of ICB Asset Management Company Limited (AMCL) are:
ICB AMCL Unit Fund Open-end 3379.40
ICB AMCL Pension Holders' Open-end 172.90

Unit Fund
ICB AMCL 2nd NRB Mutual Close-end 1000.00

Fund
Prime Finance First Mutual Close-end 200.00

Fund
28
ICB ASSET Close-end 500.00
MANAGEMENT
COMPANY LTD. AMCL
Second Mutual Fund

MANAGEMENT
COMPANY LTD. Employees
Provident M.F. 1: Scheme 1
Prime Bank 1st ICB ASSET Close-end 1000.00

MANAGEMENT
COMPANY LTD. AMCL
Mutual Fund
Phoenix Finance 1st Mutual Close-end 600.00

Fund

MANAGEMENT
COMPANY LTD.
AMCL -ird NRB Mutual
Fund
IFIL Islamic Mutual Fund-1 Close-end 1000.00
Bangladesh Fund Open-end 17701.90
ICB AMCL Sonali Bank Ltd. Close-end 1000.00

1st Mutual Fund
ICB AMCL First Agrani Bank Close-end 981.50

Mutual Fund
ICB AMCL Converted First Open-end 402.30

Unit Fund
ICB AMCL Islamic Unit Open-end 687.40

Fund
29
1stICB ASSET Open-end 907.60
MANAGEMENT
COMPANY LTD. Unit Fund
2ndICB ASSET Open-end 118.40

MANAGEMENT
3rdICB ASSET Open-end 301.80

MANAGEMENT
4th ICB ASSET Open-end 227.10

MANAGEMENT
5th ICB ASSET Open-end 351.40 20

MANAGEMENT

MANAGEMENT

MANAGEMENT

MANAGEMENT
3.3 Mutual Fund of ICB ASSET MANAGEMENT COMPANY

LTD.:
ICB Asset Management Company Ltd. is the pioneer organization of initiating mutual fund
industry in Bangladesh. The country's first closed-end mutual fund, the "First ICB ASSET
MANAGEMENT COMPANY LTD. Mutual Fund" was launched on 25 April 1980 since then ICB
30
ASSET MANAGEMENT COMPANY LTD. had floated 8 closed-end mutual funds of total
capital of Tk. 17.50 crore (which is now Tk. 17.75 crore) up to 1996.
Securities and Exchange Commission (Mutual Fund) Rules, 2001was circulated by Bangladesh
Securities and Exchange Commission (BSEC) through gazette notification. At that time the
aforementioned eight mutual funds managed by ICB ASSET MANAGEMENT COMPANY
LTD. was listed in the stock exchanges.
Launching of ICB ASSET MANAGEMENT COMPANY LTD. Mutual Fund:
ICB Asset Management Company Ltd. took the first initiative to launch Mutual Fund in
Bangladesh and offered First ICB ASSET MANAGEMENT COMPANY LTD. Mutual Fund in
1980, since then ICB ASSET MANAGEMENT COMPANY LTD. had floated 8 closed-end
mutual funds of total capital of Tk.17.50Crore (at present 17.75 crore). Though there are 17 asset
management companies in Bangladesh, ICB ASSET MANAGEMENT COMPANY LTD. and
only six other companies are managing 41 close-end mutual funds. Besides these, ICB ASSET
MANAGEMENT COMPANY LTD. and 4 other companies are managing 11 open-end mutual
funds.
3.4 Background of conversion into open-end Scheme from close-end

Mutual Fund
ICB Asset Management Company Ltd. Islamic Mutual Fund, a close-end mutual fund of 10 (ten)
years tenure, managed by ICB Asset Management Company Ltd. was formed by ICB Asset
Management Company Ltd. Capital Management Limited under a Trust Deed executed on 15 July
2004 where ICB Asset Management Company Ltd. was acting as the Trustee and Custodian of the
Fund.
Bangladesh Securities and Exchange Commission has approved the conversion of ICB ASSET
MANAGEMENT COMPANY LTD. AMCL Islamic Mutual Fund as an open-end Scheme from
close-end nature .It may be mentioned here that 80.94 percent of the present unit holders
(According to their holding of total number of units) of the Fund pass a resolution for conversion
of the Fund into open-end Scheme in the special meeting held on 06 January 2015 at Hotel-71,
Kaizuddin Tower, 176, Shaheed Syed Nazrul Islam Sarani, Dhaka-1000.
The Sponsor and existing unit holders‟ of the said Fund shall be entitled to get open-end unit
certificates through conversion of aforesaid units holding by them @ Net Asset Value (NAV) of
Tk. 17.87 per unit, fixation by the Auditor and empowered by the Commission. It may be
mentioned here that for auditing accounts and valuation of net assets of ICB ASSET
MANAGEMENT COMPANY LTD. AMCL Islamic Mutual Fund, M/S Malek Siddiqui Wali,
31
Chartered Accounts has been appointed as the Auditor as the lowest bidder with proposal of
honorable unit holder Mr. MOZAMMEL HAQUE and SAYED LIAQUAT ALI which was
supported by other unit holders.
Present condition of the capital market regarding conversion of the Fund

Islamic investment equity funds market is one of the fastest-growing sectors within the Islamic
financial system. The total assets managed through these funds exceed US$5 billion and are
growing by 12–15% per annum.
With the continuous interest in the Islamic financial system, there are positive signs that more
funds will be launched. Some Western majors have just joined the market or are thinking of
launching similar Islamic equity products.
In Bangladesh, the major stock market indicators improved as investors injected more money into
securities. The Dhaka Stock Exchange (DSE) broad index grew by 28.9% in September 2018 over
September 2018, reaching 5,074.3 points.
The market price–earnings ratio rose to 18.6 in September 2014 from 14.4 in September 2018,
reflecting some price recovery in the market. Since January 2018, 14 new companies have been
listed on the DSE.
The DSE market capitalization rose by 33.4% in September 2014 over September 2018. Net
foreign portfolio investment declined to $69.0 million in July–August 2014, from $113.0 million
in July–August 2018.
The Chittagong Stock Exchange (CSE) selected categories index largely followed the trends of the
DSE broad index. In September 2017, the CSE index rose by 23.3% over September 2018, and
CSE market capitalization rose by 41.5% during the same period.
Several factors contributed to the recent rise in stock market indicators. Reforms such as
demutualization of stock exchanges, and enhanced surveillance of brokerage houses and merchant
banks to improve market discipline and strengthen market monitoring stabilized the market, and
helped increase investor confidence.
Investors are looking for higher returns (e.g., in stocks) away from bank deposits because of the
lower deposit interest rates.
The Investment Corporation of Bangladesh released funds under the government refinancing
scheme for share investors who were most affected by the 2010 stock market crash.
The enhanced collaboration between the central bank and the Bangladesh Security and Exchange
Commission is also contributing to ensure capital market stability and growth.
32
The number of listed securities in DSE was at 546 where 277 were companies, 40 mutual funds, 8
debentures, 221 treasury bonds and 3 corporate bonds which market capitalization stood at Tk.
3,25,924.67 crore at the end of December 2017.
The DSEX index stood at 4,864.96 points on December 30, 2018 as against 4266.55 points on the
same day of the last year which is 14.03% higher than that of previous year.
DSE introduces one new index, which is known as the DSEX Sharia Index (DSES) with effect
from January 20, 2017.
The DSES on its first day on January 20, 2014 stood at 941.28 points and closed on December 30,
2014 at 1150.22 points.
On the other hand, the number of listed securities in CSE was 286 where 243 were companies, 40
mutual funds and 3 corporate bonds which market capitalization stood at Tk. 2,61,338.20 crore at
the end of December 2018.
On the contrary, the CSE All Share Price Index was 14938.92 points on December 30, 2018 as
against 13202.94 points on the same day of the last year which is 13.15% higher than that of
previous year.
33
Chapter 4
Security Market, Business
Performance and Service
Perspective of AMCL
34
4.1 ICB ASSET MANAGEMENT COMPANY LTD.’S ROLE IN THE
SECURITIES MARKET
ICB Asset Management Company Ltd. has been one of the architects of the capital market, particularly
the securities market in Bangladesh. ICB Asset Management Company Ltd. undertakes diverse
activities with the objectives of quickening the pace of industrialization on the one hand and on the
other hand, bolster the capital market. ICB Asset Management Company Ltd. and its three subsidiary
companies play impressive roles in maintaining a buoyant and sustainable capital market in the country.
In this regard ICB Asset Management Company Ltd. participates both in primary and secondary
markets.
As on 30 June 2010, the number of ICB Asset Management Company Ltd. assisted securities was 139
out of 279 listed securities (excluding 171 Govt. treasury bonds) of Dhaka Stock Exchange Ltd. out of
232 listed securities of Chittagong Stock Exchange were 100. In the reporting year, through the purchase
and sale of securities for ICB Asset Management Company Ltd.’s investment portfolio, unit fund and
mutual funds’ portfolios and on behalf of investment account holders ICB Asset Management Company
Ltd. made significant contribution In maintaining depth, stability, reliability and liquidity of the stock
market.
During 2017-18 the total trading of ICB Asset Management Company Ltd. and its subsidiary
companies in both the bourses was Tk. 12435 crore high was 129.24 percent higher than the previous
year volume has increased significantly during the year
4.2 Business Performance of ICB Asset Management Company Ltd. for

the Year 2017-18
ICB Asset Management Company Ltd. is proud to have demonstrated the underlying strength of its
business strategy by consistently delivering profits over the past decade, despite turmoil in global and
regional markets. Its top priority is to add value and achieve attractive returns for our shareholders.
Prudent portfolio management is one of the strategies for income generation.
ICB Asset Management Company Ltd. always try to diversify its investment portfolio. ICB Asset
Management Company Ltd.’s investment in sustainable income generating securities results in yielding
profits even in such an unstable market situation. The Corporation will continue to strengthen its
presence in the field through its strategic investment decision in promising directions.
ICB Asset Management Company Ltd. (holding company) alone has shown its proficiency and achieved
sound financial results with booking a net profit before Tax of Tk. 310.51 crore during the FY 2017-18
with an impressive return on equity of 12.97%. The graph below presents the trend of the corporation's
capital gain during this year as compared to its achievements in other heads of income.
The growth in other heads including dividend income, fees, commission & charges remained smooth
over the year. Net profit available for appropriation surged at the rate of 25.26% which ensures the
35
corporation's revenue generating efficiency. Products and services that play pivotal role for bolstering
the operating income include investors' scheme, private placements, venture capital, debenture
financing and fees/commissions for operating as banker to the issue, trustee and custodian to the issue
of securities and providing bank guarantee, lien against unit certificates, corporate financial advice, etc.
The assets of ICB Asset Management Company Ltd. stood at Tk. 8618.42 crore, while the corporation
maintained an impressive capital adequacy of 29.68% (33.30% on consolidated basis), well above the
required rate under BASEL-II of 10.00 percent.
The ratio of non-performing assets to total assets was at a commendable 3.54% which is lower than the
industry average
We can see that the dividend paid for the first mutual fund is always good. The main reason is maturity.
Eighth mutual funds scenario is totally opposite than the first one.
4.2.1 Comparison of Dividend, Net Asset value and Earning per Share
Particulars Mutual funds managed by ICB Mutual funds managed by others

ASSET MANAGEMENT
COMPANY LTD.
Highest Lowest Highest Lowest
Dividend (%) 1000.00 20.00 30.00 0.60

(2017/2017-18)
Net Asset Value per Unit (Tk.) 1521.50 59.48 33.96 7.49
as on 30 June 2018
Earnings per share (Tk.) 142.73 13.93 3.70 (0.35)

(2017/2017-18)
The highest dividend paid by other companies is not that much higher than the lowest dividend ICB
Asset Management Company Ltd. paid their fund holders
36
4.2.2 Operating Performance of ICB:
For an organization or a company, operating performance indicate that how well that company is going on. In
our report we tried to evaluate ICB performance through year to year.
Net Income:
Here we can see ICB Corporation has increasing net income. In 2013-14 they earn 1059.79 crore BDT.
Next year total earnings increased by 7.43% and in 2017-18 total 1702.35 crore BDT was earned by
ICB. In mid time 2015-16, earnings was low, may be that incidents occurred because of rough political
environment in Bangladesh.
Net Operating Income after Tax (crore):
Net operating income does not indicate the real scenario of the organization, that’s why we should
consider tax issue and consider the net operating income after tax. From the below chart we can clearly
understand that net profit after tax was its highest pick at 2016-17. Though in 2016-17 ICB Net profit
after tax was not at its highest pick but it did we well enough according to the consecutive year. It’s
clear to us why ICB gain its lowest Net operating income after tax in 2013-14.
37
Now let’s discuss about the book value per share of ICB Corporation. ICB losing its book value per
year to year from 2013. In 2016-17 its book value was73.39 BDT per share, which is highest for ICB.
But after that it gone down at 57.56 BDT per share. This indicate that people are losing hope on ICB.
Book Value Per Share
80 73.34 73.39
69.2
70
59.51 57.56
60
50
40 Book Value Per Share
30
20
10
0
2013-14 2014-15 2015-16 2016-17 2017-18
4.2.3 Portfolio Growth of ICB:

Being the largest institutional investor ICB contributes significantly to the development of the country's
capital market through active portfolio management which is one of the important functions of ICB.
38
During 2003-04 a total investment of Tk. 138.93 crore has been made in the investment portfolio of
ICB including Tk.O.2 crore in shares of a company through Pre-IPO placement, Tk. 7.0 crore in
debentures of two companies, Tk. 0.3 crore in preference shares of a company and Tk. 5.0 crore in
bonds of a company.
As a result of favorable market situation in 2003-04 ICB earned Tk. 42.25 crore as capital gain through
sale of securities of Tk. 258.59 crore which was 53.58 per cent higher than the capital gains of Tk. 27.51
crore made in 2002-03. During 2003-04, an amount of Tk. 22.95 crore was earned as dividend on shares
and interest on debentures as against Tk. 21.5 crore in 2002-03 registering an increase of 6.74 per cent.
Dividend income has increased because of satisfactory dividend performance of some companies.
Portfolio Investment
12000 10775 10071
10000 7887
8000 6630
5093
6000
Portfolio Investment
4000
2000
0
Up to 30 June 2004 ICB made a total investment of Tk 41.08 crore in 27 companies through purchase
of preference shares, debentures, shares against pre-IPO placement and bonds of Tk.7.3 crore of 3
companies, Tk. 9.5 crore of 3 companies, Tk. 11.33 crore of 12 companies and Tk. 5.0 crore of a
company respectively as well as through investment of Tk. 7.95 crore in 8 companies as direct equity
participation
As on 30 June 2004, the market value of the securities of ICB's investment portfolio stood at Tk.521.62
crore against the net investment value of Tk. 378.82 crore resulting in capital appreciation of Tk. 1 42.8
crore.
39
4.3 Service perspective and evaluation of ICB Asset Management
Company Ltd.
Despite of the fact that it is financial institution this is solely a service oriented organization. Consumer
comes here for financial support and help. Sometimes they get the financial help and sometimes not.
However, each time they are treated by the employee of the organization.
Since, the employees give them the service, so often discrepancy is seen between the expectation of the
consumer and perception of the consumer. As a result customer gap is seen.
For instance, the consumer thought of receiving super-fast loan sanction processing event where as in
reality the process is very slow and lengthy, so customer gap is seen. A provider gap arises for the
discrepancy seen in the service given to the consumer and the service expected by the consumer. The
reasons of provider gap are as following
The listening gap:
This gap arises since the organization has very little idea about the demand of the consumer. For
instance, while talking to the consumer we came to know that the consumer want the loan sanction
process to be happened very fast , where as in reality the consumer receive the loan after a lengthy
bureaucratic process.
The service design and standards gap:
When the people of the authority and responsibility who set the priority, do not understand the
expectation of the consumer fully, then they trigger a chain of bad decision and suboptimal resource
allocation that result in perception of poor service quality.
In this business world, the more work have been delegated to the empowered teams and frontline
people, the accountable team make their own decision about how to address their client’s expectation.
However, in reality the consumer cannot express their expectation.
For instance, many people ask for the online services. However, the authorities do not have any idea
about the expectation of the consumer. So they cannot design the service according to the demand of
the consumer.
The communication gap:

It is often seen that the consumer are handled by the frontline and junior executive. So even if the
consumer ask about their demand and need to the junior executive, due to tall organizational structure
and bureaucratic process the top management never gets to know this.
However, since this is government organization so the level of service is not up to the level of private
organization. As a result, many people do not want to invest through ICB Asset Management Company
Ltd.
40
Inadequate service recovery:
Even if the consumers get the bad service or the organization fails to fulfill the expectation of the
consumer, the organization hardly bothers about it. I have seen many times the consumer to become
very pissed off. However, having no other option they do invest through ICB Asset Management
Company Ltd. despite of the fact that they create negative word of mouth.
Service quality dimension:
The service quality dimension is some factors which actually determine about the quality of the service.
Those are as followings:
Reliability:
This means the ability to perform the promised service dependably and accurately. Though ICB Asset
Management Company Ltd. promises of giving best quality service, however, we have often seen the
consumers are not getting the service up to their expectation. The consumer might come to the office
many times for getting a paper work done which is just a signature away. So the reliability of ICB Asset
Management Company Ltd. in consumer mind is not up to that level.
Assurance:
It means the employee’s knowledge and courtesy and their ability to inspire trust and confidence among
the consumer. Definitely the professionals of the ICB Asset Management Company Ltd. are highly
qualified and they are well mannered. With their wisdom they convince the consumer to invest or get
loan through ICB Asset Management Company Ltd.
Empathy:
This means showing caring individualized attention given to the consumer. However, sadly ICB Asset
Management Company Ltd. is not up to that level of showing empathy to the consumer.
Tangibles:
This means the appearance of the physical facilities, equipment, personnel, and written materials. ICB
Asset Management Company Ltd. is not up to that level in equipment, physical facilities. Mostly, paper
work load is there. So the organization does not fit in the modern structured organization list.
41
Chapter 5
Company Valuation for Investing
Mutual Fund
42
5.1 Fundamental Analysis:
ICB Asset Management Company invested in Energypac power Generation Ltd. For investing
purpose, they needed to fundamental analysis. Fundamental Analysis is Process of looking at a
business at the most basic or financial level.
This type of analysis examines the key ratios of a business to determine its financial health.
Fundamental analysis can also give anyone an idea of the value of what a company's stock should
be. The steps are given below:
Step 1: Data Collection of Similar, Same Nature Companies:
Market
Price (200 Days
Weighted
Company Average) PE EPS NAV P/BV
AFTAB 88.81 22.15 4.01 52.65 1.69
SINGERBD 155.11 19.99 7.76 51.54 3.01
RFL 61.41 20.47 3.00 17.88 3.43
SALAM 43.71 11.56 3.78 20 2.19
GOLDENSON 46.72 12.29 3.80 30.34 1.54
BSRM 62.32 12.46 5.00 18.6 3.35
NAVANA 74.13 17.32 4.28 23.76 3.12
EASTERNCABLE 54.9 26.91 2.04 16.83 3.26
Average 17.89 2.70
43
Method 1: Earning Based Method
Weighted Average
Period NPAT No. of Share Weight Profit
Jun-09 19,157,783.00 200,000 0.0011 21,088.08
Jun-10 78,446,374.00 200,000 0.0011 86,350.46
Jun-11 447,092,214.00 9,700,000 0.0534 23,868,803.29
Jun-12 585,438,312.00 56,260,000 0.3096 181,276,986.09
Jun-13 619,595,203.00 115,333,000 0.6348 393,299,541.25
Total 181,693,000
598,552,769.17
Total Number of Shares 121,833,000
Weighted Average EPS 4.91
DSE Market PE June, 2013 14.60
Similar Stocks* 17.89
Earning Based Multiple (Average) 16.25
Earning Based value 79.81
44
Method 2: Net Asset Value (NAV) Based Method:
Shareholders’ equity (With Revaluation) 3,191,729,100.00
Shareholders’ equity (Without Revaluation) 1,850,866,481.00
Total Number of Shares 121,833,000
Net Asset Value per share (with Revaluation) 26.20
Net Asset Value per share (without Revaluation) 15.19
P/BV of DSE June, 2013 2.32
P/BV of similar stock* 2.70
NAV Based Multiple (Average) 2.51
NAV Based value (With Revaluation) 65.76
Calculation of Fair Price of EPGL:
Method 1: Earning Based Value 79.81
Method 2: NAV Based Value (With Revaluation) 65.76
Fair Value (Average) 72.78
Indicative Price @30% Discount on Fair Value 50.95
45
Chapter 6
SWOT Analysis & Risk Factor of
ICB Asset Management Company
Ltd.
46
6.1 Analysis of SWOT
Market Share
ICB asset Management Company is the pioneer organization of initiating mutual funds in
Bangladesh. At present out of 37 close-end mutual funds, this company is managing 10 mutual
funds. Besides 37 close-end mutual funds, there are at present 40 open-end mutual funds in the
country, 13of which are managed by ICB ASSET MANAGEMENT COMPANY LTD. Asset
Management Company Ltd.
Capital Size
If we look at the capital structure of the company then it will become obvious ICB asset
Management Company has huge amount of reserve and retained earnings. Besides internal source
ICB ASSET MANAGEMENT COMPANY LTD. have also access to external source of funds.
Economic Trend
Global and internal economic environment had an upward trend in the previous year and it is
expected to be so. This upward trend in the economy has a positive impact in the mutual fund
industry. The overall industry has increased by significant amount, net asset value of close-end
fund has increased by 1.28%.
Management Team
Senior executives of the Company have been deputed from ICB asset Management Company They
are highly experienced in the relevant fields with good academic background. Most of them have
undergone extensive training particularly in the capital market related subjects. Some of them have
also received foreign training in the relevant fields.
These are the strengths and opportunities of AMCL. Now we will look at her weakness and threat.
Capital Market Environment
Capital markets underwent some corrections during FY 17-18 after rallying consecutively for the
last seven months, as reflected in price indices, market capitalization, price earnings ratio, and
turnover.
Dividend per Unit
Dividend of most of their open-end unit fund has decreased from their previous fiscal years which
reflects their negative performance in the market. Beside this new companies are entering into the
market.
47
As a statutory organization ICB asset Management Company. enjoys some discretion in decision
making but always it has to be operated under close supervision of Finance ministry.
Strength:
The internal strengths of ICB Asset Management Company Ltd. are given below:
 Strong financial backup.
 Expert management team.
 Good reputation.
 Diversified financial product.
 Strong network.
Weakness:
 Bureaucratic practice.
 Lack of discipline.
 Lack of authority in officer level.
 Lack of computerization system.
Opportunities:
 Govt. tries to boost up capital market.
 As the corporate tax is reduced more investor will come to set up new ventures.
 The economy is overcoming the September 11 crises.
 Investors are getting confidence over security market.
Threats:
 A lot of private enterprise caters into the market.
 People have less knowledge about the capital market.
 There are some unethical practices in security market.
 Low rate of dividend declared by the companies.
48
6.2 RISK FACTORS
1. The performance of the Fund is directly related with the macro economic situation
particularly the capital market of Bangladesh.
2. Since the capital market of Bangladesh is highly volatile, there is no assurance of achieving
the stated objective of the Fund.
3. Due to small number of listed securities in both the Stock Exchange(s), it may be difficult
to invest the Fund’s assets in a widely diversified portfolio as and when required to do so.
4. Stock market trend shows that prices of almost all the listed securities move in unpredictable
direction, which may affect the value of the Fund. Moreover, there is no guarantee that the
market price of unit of the Fund shall fully reflect their underlying net asset values.
5. If the companies wherein the Fund shall be invested fail to pay expected dividend may affect
the return of the Fund.
6. For investing in Pre-IPO Placement securities i.e. in unlisted securities by the Fund may
involve liquidity risk.
7. Uncertainties like political and social instability may affect the value of the Fund’s assets.
8. Adverse natural climatic condition may hamper the performance of the Fund.
In the present scenario mutual fund has emerged as the effective investment vehicle for those who
like to rely on professional fund manager for investment management as it has been tested over
time all around the world in both developed and emerging economies.
The professional fund management, portfolio diversification, low cost but high quality investing,
convenience, flexibility, and liquidity are distinct features of a mutual fund that make it a very
reliable market instrument for small investors. It is apparent that there is ample opportunity for
growth of our nascent mutual fund industry.
It can be said that in course of time mutual fund shall play a vital role in our capital market because
of its inherent strength of being a professionally managed investment vehicle and the small
individual investors shall gradually go under the umbrella of professional fund managers like those
in any other emerging market.
49
Chapter 7
Findings & Recommendations
50
7.1 Findings:
ICB Asset Management Company Ltd. operate in the capital market with skilled and experience
financial experts. The credit of its good performance and reputation solely goes to its professionals.
All of its security trading and investment decision is taken by professional management team.
Especially ICB asset Management Company mutual funds always have investor confidence. The
capital adequacy ratio, EPS, ROI of ICB Asset Management Company Ltd. is quite satisfactory.
Studying the portfolio of mutual funds I have some finding that might have impact on investor
confidence.
All the mutual funds follow the same patter in their respective income statement. Their secured
income and dividend income are very low compared to capital gain. The dividend declaration as a
percentage of face value of all mutual funds except 1st ICB Asset Management Company MF is
quite low compare to earnings. Most of mutual funds dividend performance varies from 200% to
350%.
The dividends of mutual funds are different though all mutual funds maintain same type of
portfolio. Only first and sixth mutual fund has provided higher dividend in compare to their capital
gain.
7.2 Recommendation:
Since we visited ICB Asset Management Company, we actually could figure out all the problems
from a consumer’s perspective. All the problems are mostly related to financial service, loan
amount and investment related. However, some of the recommendations are as following.
 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 Asset Management Company may fix redemption date of each fund, it may redeem,
1st, 2nd &3rd mutual fund. Because, these funds are established for more than 15 years.
 ICB Asset Management Company Ltd. 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 company’s shares will need to proceed with conscious & investor’s
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
51
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 Asset Management
Company Ltd.
 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.
The first ICB Asset Management Company Ltd. mutual fund provides high return comparing
capital gain but other doesn’t do that. To attract more investor ICB Asset Management Company
Ltd. have to change its policy. ICB Asset Management Company Ltd. should have a strong IT
setup and the network (internet & intranet) field should have to be developed.
52
Chapter 8
Conclusion
53
ICB Asset Management Company Ltd. is a unique name in our country as mutual fund manager. It is
playing a pivotal role to develop the country’s capital market, ICB Asset Management Company Ltd.
as the National Investment House is the 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 Asset
Management Company ltd.’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 Asset Management
Company Ltd. strengthens the activities of mutual fund.
It has skill and experienced labor force and professional and dedicated management team that enable to
pursue the ICB Asset Management Company ltd.’s goals and objectives. But the good scenario does not
exist when the problem is in backdated mentality of almost every employee. We know that government
organization is the root of all corruption and bureaucratic complexity. So they are too late to all work
that hamper proper customer service-when it is said that ‘customer is the king”.
To become competitive and keep the leading position in the market ICB Asset Management Company
Ltd. must have to take initiative (whether to recruit some creative expertise or to train and motivate
present employees) otherwise the day nears when ICB Asset Management Company Ltd. would become
only name.
From the sequence of our analysis it is reflected that unit fund has played a pivotal role to develop the
country’s Capital Market, ICB Asset Management Company Ltd. as the investment Companies was the
lone organization to perform the activities by creating demand for securities in the Capital Market.
Mutual fund helps to boost up domestic economy though facilitating to invest into the capital market.
The floatation of unit certificates by ICB Asset Management Company Ltd. strengthens the supply of
attractive securities in Bangladesh Capital Market. It is also reflected from the present study that Mutual
fund has contributed a good percentage in the turnover volume and market capitalization of DSE. We
are quite optimistic that if the given recommendations of this report are implemented then ICB Asset
Management Company Ltd. may be able to overcome its present Mutual fund problems and may
contribute in development of Bangladesh Capital Market.
Mutual Fund department is appreciably innovative, explorative and dynamic. ICB Asset Management
Company Ltd. should specially continue the operations and management of mutual fund because most
of the small investors are key clients of mutual fund. But still, Mutual Funds are not above the
shortcomings. So, ICB Asset Management Company Ltd. should concentrate to increase the
performance of its mutual fund and way to find out the path for overcoming the problems of operations.
54
APPENDIX
.
55
BIBLIOGRAPHY
https://www.icbamcl.com.bd/
http://www.dsebd.org/
https://stockbangladesh.com/
http://www.sec.gov.bd/
https://en.wikipedia.org/wiki/Investment_Corporation_of_Bangladesh
https://www.cse.com.bd/company/companydetails/ICB
https://www.assignmentpoint.com/business/finance/role-icb-capital-market-bangladesh.html
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Contents

1.2 Objectives of the Study

1.4 Sources and Methods of Data Collection

1.5 Limitations of the Study

2.1 Functions of Asset Management Company

3. Advisory services- An asset management company gives recommendations and suggestions

4. Designing various investment products and retirement plans- An asset management

2.2 Business policy of the ICB Asset Management Company Ltd.:

2.3 Vision and Mission of ICB Asset Management Company Ltd.

 Transforming Corporation into a responsible institution, a financial architect and an innovative

2.4 Management of ICB Asset Management Company Ltd.:

 The chairman to be appointed by the government.

2.5 Organization Manpower:

2.6 Position in the Industry:

2. Mutual Fund Management Top

3. Stock Market operation 1st /2nd since inception

4. Earning performance Best

5. Dividend performance Best (50% to 105% in last 5 years)

6. Customer base Largest

7. Infrastructure Investment Largest

8. Customer Service Modern & non-discriminating

9. Contribution to National Exchequer Largest among public sector institutions

10. Employee effectiveness & efficiency Highly satisfactory

11. Capital Adequacy Top

2.7 Departments of ICB ASSET MANAGEMENT COMPANY LTD.:

The main functions of this department are:

2.7.2 Human Resources department:

2.7.3 Establishment department:

2.7.4 Secretary’s department:

The main functions of this department are:

2.7.5 Public Relations department:

The main functions of this department are:

2.7.8 Data Management department:

2.7.9 Planning, Research & Business development department:

 Prepare income tax return and matters relating to accounts.

2.7.11 Fund management department:

The main works of this department are:

2.7. 12 Mutual Fund department:

2) Closed Ended Mutual Fund

01 Name Bangladesh Fund

02 Sponsors Investment Corporation of Bangladesh, Sonali Bank Limited,

03 Trustee ICB Asset Management Company Ltd. Capital Management

04 Custodian ICB Asset Management Company Ltd. Capital Management

07 Face Value Tk. 100.00 (one hundred) per unit

08 Dividend for FY Tk. 6.00 per unit

09 Net Asset Value At cost price Tk. 117.20

10 Earning Per Unit Tk. 6.64

3.1.2 ICB Asset Management Company Ltd. AMCL Unit Fund

01 Name ICB Asset Management Company Ltd. Unit Fund

02 Trustee & Custodian Investment Corporation of Bangladesh (ICB Asset Management

03 Types of the Fund Open-end Mutual Fund

04 Size (As on 30-06- Tk. 350.00 crore

05 Face Value Tk. 100.00 per unit

06 Dividend for FY Tk. 19.00 per unit

08 Earning Per Unit Tk. 18.07

01 Name ICB Asset Management Company Ltd. Pension Holders' Unit

02 Trustee & Custodian Investment Corporation of Bangladesh (ICB Asset Management

03 Types of the Fund Open-end Mutual Fund

04 Size (As on 30-06- Tk. 30.00 crore

05 Face Value Tk. 100.00 per unit

06 Dividend for FY Tk. 12.50 per unit

07 Net Asset Value At cost price Tk. 298.04

08 Earning Per Unit Tk. 12.24