ICB to regain trusteeship of Bangladesh Fund from BGIC
A formal letter regarding the decision will soon be issued to the relevant parties, the official revealed
The Bangladesh Securities and Exchange Commission (BSEC) has decided to transfer the trusteeship of the "Bangladesh Fund" from Bangladesh General Insurance Company (BGIC) back to the Investment Corporation of Bangladesh (ICB) under ICB Asset Management Company.
The decision was made in light of the fund's lack of improvement in financial health and to protect public interest, according to a BSEC official, seeking anonymity.
A formal letter regarding the decision will soon be issued to the relevant parties, the official revealed.
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The official further stated that ICB initially served as the trustee of the "Bangladesh Fund" before the role was assigned to BGIC in 2021. Considering ICB's application to regain trusteeship, the commission deemed the move beneficial for both the fund and public confidence.
Additionally, the official noted that ICB is expected to benefit from regaining this role.
Mahmuda Akhter, chief executive officer of ICB Asset Management Company, mentioned that investors tend to have greater confidence when ICB is the trustee of the Bangladesh Fund. While a slowdown in the stock market impacted the fund's performance last year, she expressed hope that the asset manager could deliver better results if the capital market stabilises.
Launched with an initial size of Tk5,000 crore, the "Bangladesh Fund" consists of 50 crore units, each with a face value of Tk100.
In FY24, the fund incurred a loss of Tk357 crore, a significant downturn compared to the profit of Tk30 crore recorded in the previous fiscal year. The fund reported an earnings per unit (EPU) loss of Tk20.38 during the fiscal.
Meanwhile, from July to September 2024, the fund generated a profit of Tk95.13 crore, a significant improvement compared to a loss of Tk9.95 crore during the same period the previous year. The fund reported an earnings per unit (EPU) of Tk5.43. Its net asset value (NAV) per unit stood at Tk86.58 at market price and Tk124.16 at cost price.
Recently, decisions to transfer the trusteeship of four other mutual funds to ICB were taken by the BSEC. These include the Popular Life 1st Mutual Fund, PHP First Mutual Fund, EBL NRB Mutual Fund, and AB Bank 1st Mutual Fund, all currently managed by BGIC.
