NCCBL Mutual Fund to pay 12% cash dividend
Investors should hold the fund’s units till 1 March in order to receive the dividend
NCCBL Mutual Fund-1, a closed-end fund listed on the Dhaka Stock Exchange (DSE), has declared a 12% annual cash dividend for its unitholders.
To receive the dividend for the 2021 financial year ending on 31 December, investors should hold the fund's units till 1 March.
The dividend decision came from the trustee meeting held on 7 February. It has proposed the double-digit dividend after three years.
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LR Global Bangladesh Asset Management Ltd operates the fund, where Bangladesh General Insurance Company Limited acts as a trustee.
At the end of last year, NCCB Mutual Fund's net profit was Tk15 crore and earnings per unit of Tk1.40, which was 25% higher than the previous year.
Its net asset value per unit stood at Tk12.83 after considering the market capitalisation of the investments.
Currently, each unit was traded below the face value of Tk10 at the DSE. On Monday, its unit closed 1.14% higher at Tk8.90.
The fund got listed on the DSE in 2012 for 10 years but later it has extended the tenure for another 10 years by using an opportunity provided by the securities regulator.
Its paid-up capital is Tk108.50 crore, where its sponsors own 15%, institutional investors 65.85% and general investors 19.15%.
According to its asset manager, since the fund's inception, investors got a 7.76% return, which is equivalent to Tk51.27 crore.
To secure the investors' fund, it invested 36% of its total asset in fundamental stocks such as British American Tobacco, Renata, Square Pharma, Bata Shoe and Grameenphone.
It also invested around 11% of the total fund in non-listed companies namely Thyrocare Bangladesh Limited, Bangladesh News 24 Hours and Rangpur Distilleries and Chemicals Ltd.
