Two mutual funds get 10-year extension
The funds will expire in 2030 now
Closed-end mutual funds Phoenix Finance 1st Mutual Fund and ICB AMCL Third NRB Mutual Fund have got a tenure extension of 10 years each.
The Investment Corporation of Bangladesh (ICB), the trustee of the schemes, approved the extension on Tuesday.
Launched in 2010, the mutual funds were scheduled to expire this month. After the latest tenure extension, it will expire in 2030 now.
Phoenix Finance 1st Mutual Fund's tenure was extended up to May 3, 2030, and ICB AMCL Third NRB Mutual Fund's up to May 19, 2030.
ICB Asset Management Company, a subsidiary of the ICB, manages both of these mutual funds.
Closed-end mutual funds are investment funds that gather a fixed pool of money for 10 years from investors and reinvest them in stocks, bonds and other assets.
However, considering the bearish trend in the country's stock market, the Bangladesh Securities and Exchange Commission last year issued a notification for extending the tenure of closed-end funds by another 10 years.
The tenure of the two mutual funds was extended in line with the directive, sources said.
An official at the securities exchange commission said, "If the tenure of a large number of funds comes to an end at the same time, it might have negative impacts on the market."
''So the regulator, after consulting with the finance ministry, issued the notification.''
ICB AMCL Third NRB Mutual Fund
The fund had an asset of Tk55.16 crore in market price, according to the latest financial report. In cost price, its total asset stood at Tk117.39 crore.
The paid-up capital of the fund is Tk100 crore.
On June 30 of the last financial year, the mutual fund provided a 4 percent cash dividend.
In the first half of the current financial year, earnings per unit of the fund were Tk0.19.
The lowest unit price of the fund was Tk4.40 and the highest price was Tk7.10, within one year, at the Dhaka Stock Exchange (DSE).
Of the total unit, sponsors and directors had 10.03 percent, institutional investors 52.70 percent, foreign investors 2.67 percent and the general investors 34.60 percent unit.
Phoenix Finance 1st Mutual Fund
The fund had an asset of Tk35.08 crore in market price. In cost price, its total asset stood at Tk71.55 crore.
The paid-up capital of the fund is Tk60 crore.
On June 30 of the last financial year, the mutual fund provided a 5 percent cash dividend.
In the first half of the current financial year, earnings per unit of the fund were Tk0.21.
The lowest unit price of the fund was Tk4.70 and the highest price was Tk11.30, within one year, at the DSE.
Of the total unit, sponsors and directors had 33.33 percent, institutional investors 32.87 percent, foreign investors 0.01 percent and the general investors 33.79 percent unit.