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Analyst:

Khandakar Safwan Saad


safwan@bracepl.com

Kallol Biswas
kallol.biswas@bracepl.com

Weekly Report on Mutual Funds


April 15, 2012
Chart 1- Change in weighted average Price to NAV ratio of the sector in the last two months:

1.00x

0.95x 0.90x 0.85x 0.80x

6,000 5,500 5,000 4,500 4,000 3,500 3,000

Mutual fund managers have reported the latest NAV/Unit of mutual funds (for the week ending April 12, 2012). Out of 40 listed funds 36 funds are trading at a discount while the remaining four funds are trading at a premium. Popular Life 1st MF, managed by RACE, has the lowest Price/NAV ratio of 0.71x (trading at 29% discount). IFIC Bank 1st MF managed by Race and Green Delta Mutual Fund managed by LR Global are trading at 27%discount each. PHP First MF and Trust Bank 1st MF both managed by RACE are trading at a discount of 26% and 25% respectively. Among the funds that are traded, Grameen MF One is trading at the highest Price/NAV ratio, trading at 57% premium, followed by Grameen One: Scheme Two, trading at a premium of 5%. Price/NAV ratio of the sector went up marginally this week - it stood at 0.88x based on todays close price (Apr 15, 2012). Market capitalization of the 40 funds stood at BDT 38.3 billion while total asset under management stood at BDT 43.5 billion. RACE holds the highest market share of 41% (with nine funds) with combined Price/NAV of 0.82x. Daily average turnover value of the sector decreased by 18.3% last week to stand at BDT 108.7 million per day compared to BDT 133.2 million the week before. 7th ICB MF, managed by ICB, had the highest NAV return in last four weeks - their reported NAV increased by 23.2%. It is followed by 4th ICB MF, also managed by ICB whose reported NAV increased by 22.8%. However, the benchmark index, DGEN, gained 17.6% in the same period. Table 3, on the next page, shows the mutual fund sector matrix sorted by their Price/NAV ratios, from smallest to largest.
Table 1 - Top five funds based on last 4 weeks NAV return Fund Name Fund 4-week NAV Price/NAV Price (BDT) return Manager ICB ICB ICB ICB AMCL ICB AMCL 23.2% 22.8% 22.2% 20.0% 19.8% 17.6% 0.8x 0.8x 0.8x 0.9x 0.9x 83.50 189.00 174.00 7.30 7.60

DGEN (RHS)

Price/NAV (LHS)

Source: BRAC EPL Research, DSE, April 2012

Chart 2 - Market share of the fund managers:

VIPB BDBL 3% 1% ICB 6% AIMS 15% ICB AMCL 17%

RACE 41%

LR Global 17%

Source: BRAC EPL Research, DSE, April 2012

Chart 3 - Price/NAV of the fund managers:

1.20 1.10
1.00 0.90 1.08

7THICB 4THICB 3RDICB PF1STMF PRIME1ICBA DGEN

Source: BRAC EPL Research, April 2012

0.91

0.89

0.87

0.86

Table 2 - Bottom five funds based on last 4 weeks NAV return

0.86

0.82

0.80 0.70
0.60

Fund Name SEBL1STMF LRGLOBMF1 RELIANCE1 POPULAR1MF AIBL1STIMF DGEN

Fund 4-week NAV Price/NAV Price (BDT) return Manager VIPB LR Global AIMS RACE LR Global 3.7% 4.9% 7.5% 8.3% 8.9% 17.6% 0.9x 1.0x 0.8x 0.7x 0.8x 10.00 10.00 8.80 7.00 7.70

AIMS

ICB VIPB AMCL

ICB BDBL

LR RACE Global

Source: BRAC EPL Research, DSE, April 2012

Source: BRAC EPL Research, April 2012

Weekly Report on Mutual Funds


April 15, 2012

Table 3: Mutual Fund Sector Matrix


Name of Mutual Fund: Popular Life First Mutual Fund IFIC Bank 1st Mutual Fund Green Delta Mutual Fund PHP First Mutual Fund Trust Bank 1st Mutual Fund IFIL Islamic Mututal Fund-1 EBL NRB Mutual Fund DBH First Mutual Fund AIBL 1st Islamic Mututal Fund 7th ICB M.F. First Janata Bank Mutual Fund 3rd ICB M.F. EBL First Mutual Fund Reliance Insurance Mutual Fund MBL 1st Mutual Fund 4th ICB M.F. Southeast Bank 1st Mutual Fund 1st ICB M.F. 1st Bangladesh Shilpa Rin Sangstha M.F. Phoenix Finance 1st Mutual Fund ICB AMCL 1st NRB Mutual Fund Prime Bank 1st ICB AMCL Mutual Fund 8th ICB M.F. 5th ICB M.F. ICB AMCL 1st M.F. 6th ICB M.F. First Bangladesh Fixed Income Fund ICB AMCL Third NRB Mutual Fund ICB AMCL Second Mutual Fund ICB Employees Provident MF 1: Scheme 1 NLI First Mutual Fund ICB AMCL Islamic Mutual Fund LR Global Bangladesh Mutual Fund One ICB AMCL 2nd NRB Mutual Fund Prime Finance First Mutual Fund AIMS 1st M.F. AB Bank 1st Mutual Fund Grameen One : Scheme Two 2nd ICB M.F. Grameen Mutual Fund One
Source: BRAC EPL Research, DSE, April 2012

DSE Ticker POPULAR1MF IFIC1STMF GREENDELMF PHPMF1 TRUSTB1MF IFILISLMF1 EBLNRBMF DBH1STMF AIBL1STIMF 7THICB 1JANATAMF 3RDICB EBL1STMF RELIANCE1 MBL1STMF 4THICB SEBL1STMF 1STICB 1STBSRS PF1STMF ICB1STNRB PRIME1ICBA 8THICB 5THICB ICBAMCL1ST 6THICB FBFIF ICB3RDNRB ICBAMCL2ND ICBEPMF1S1 NLI1STMF ICBISLAMIC LRGLOBMF1 ICB2NDNRB 1STPRIMFMF AIMS1STMF ABB1STMF GRAMEENS2 2NDICB GRAMEEN1

Fund Manager Price/NAV RACE RACE LR Global RACE RACE ICB AMCL RACE LR Global LR Global ICB RACE ICB RACE AIMS LR Global ICB VIPB ICB BDBL ICB AMCL ICB AMCL ICB AMCL ICB ICB ICB AMCL ICB RACE ICB AMCL ICB AMCL ICB AMCL VIPB ICB AMCL LR Global ICB AMCL ICB AMCL AIMS RACE AIMS ICB AIMS 0.71x 0.73x 0.73x 0.74x 0.75x 0.77x 0.77x 0.77x 0.80x 0.80x 0.82x 0.82x 0.82x 0.83x 0.84x 0.85x 0.86x 0.86x 0.86x 0.87x 0.87x 0.87x 0.87x 0.87x 0.88x 0.88x 0.92x 0.93x 0.94x 0.94x 0.94x 0.95x 0.97x 0.97x 0.99x 0.99x 1.00x 1.05x 1.13x 1.57x

Current Price Latest NAV/ (Apr 15, 2012) unit 7.00 8.20 6.70 6.80 8.90 6.10 8.30 7.60 7.70 83.50 7.60 174.00 10.00 8.80 8.00 189.00 10.00 915.00 113.80 7.30 30.50 7.60 56.70 144.40 44.40 47.70 9.60 7.30 8.90 8.20 10.00 22.50 10.00 15.10 13.80 41.50 10.40 16.70 281.00 47.90 9.81 11.23 9.17 9.22 11.86 7.96 10.79 9.81 9.68 104.01 9.31 211.74 12.16 10.60 9.54 222.79 11.63 1,064.09 131.73 8.40 35.04 8.71 64.98 165.14 50.44 54.06 10.39 7.81 9.49 8.74 10.61 23.63 10.29 15.52 14.01 42.01 10.37 15.95 247.85 30.54

Market Cap (BDT MM) 1,400.0 984.0 1,005.0 1,360.0 1,780.0 610.0 1,245.0 912.0 770.0 250.5 1,520.0 174.0 1,000.0 484.0 800.0 189.0 907.1 686.3 569.0 438.0 305.0 760.0 283.5 216.6 444.0 238.5 4,800.0 730.0 445.0 615.0 457.6 225.0 3,000.0 1,510.0 276.0 1,720.2 1,560.0 2,296.3 140.5 1,221.5

Average Daily Market Turnover on Last Share Week (BDT MM) 4% 8.0 3% 6.9 3% 1.5 4% 5.6 5% 8.7 2% 2.7 3% 0.0 2% 4.1 2% 0.3 1% 0.1 4% 2.0 0% 0.1 3% 1.9 1% 0.0 2% 0.4 0% 0.0 2% 1.2 2% 0.0 1% 7.5 1% 1.9 1% 0.2 2% 0.9 1% 0.3 1% 0.0 1% 0.4 1% 0.4 13% 0.1 2% 1.3 1% 0.5 2% 1.2 1% 0.0 1% 0.6 8% 0.0 4% 3.4 1% 3.2 4% 19.7 4% 0.0 6% 11.1 0% 0.0 3% 12.6
*Figures in BDT

Weekly Report on Mutual Funds


April 15, 2012

IMPORTANT DISCLOSURES
Analyst Certification: Each research analyst and research associate who authored this document and whose name appears herein certifies that the recommendations and opinions expressed in the research report accurately reflect their personal views about any and all of the securities or issuers discussed therein that are within the coverage universe. Disclaimer: Estimates and projections herein are our own and are based on assumptions that we believe to be reasonable. Information presented herein, while obtained from sources we believe to be reliable, is not guaranteed either as to accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation of the purchase or sale of any security. As it acts for public companies from time to time, BRAC-EPL may have a relationship with the above mentioned company(s). This report is intended for distribution in only those jurisdictions in which BRAC-EPL is registered and any distribution outside those jurisdictions is strictly prohibited. Compensation of Analysts: The compensation of research analysts is intended to reflect the value of the services they provide to the clients of BRAC-EPL. As with most other employees, the compensation of research analysts is impacted by the overall profitability of the firm, which may include revenues from corporate finance activities of the firm's Corporate Finance department. However, Research analysts' compensation is not directly related to specific corporate finance transaction. General Risk Factors: BRAC-EPL will conduct a comprehensive risk assessment for each company under coverage at the time of initiating research coverage and also revisit this assessment when subsequent update reports are published or material company events occur. Following are some general risks that can impact future operational and financial performance: (1) Industry fundamentals with respect to customer demand or product / service pricing could change expected revenues and earnings; (2) Issues relating to major competitors or market shares or new product expectations could change investor attitudes; (3) Unforeseen developments with respect to the management, financial condition or accounting policies alter the prospective valuation; or (4) Interest rates, currency or major segments of the economy could alter investor confidence and investment prospects.

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Sajid Huq Amit Parvez Morshed Chowdhury Ali Imam Khandakar Safwan Saad Farjad Siddiqui Kallol Biswas Head of Research Research Analyst Investment Analyst Research Associate Research Associate Research Associate sajid.huq@bracepl.com parvez@bracepl.com imam@bracepl.com safwan@bracepl.com farjad.siddiqui@bracepl.com kallol.biswas@bracepl.com 01755 541 254 01730 357 154 01730 357 153 01730 357 779 01730 727 924 01730 727 930

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