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Chapter: 1Introduction
Part
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1.1 I ntroduction:
Bangladesh is one of the least developed countries in the world with minimum natural and
financial resources. The development of Bangladesh is being hindered due to lack of insufficient
capital. To accelerate the phase of industrialization through the development of capital marketand broadening the base of investment, The Investment Corporation of Bangladesh (ICB) was
established on 1 October 1976, under The Investment Corporation of Bangladesh Ordina1976 (No. XL of 1976). The establishment of ICB was a major step in a series of measuresundertaken by the Government to accelerate the pace of industrialization and to develop a well-
organized and vibrant Capital Market particularly securities market in Bangladesh. ICB caters to
the need of institutional support to meet the equity gap of the companies. In view of the national
policy of accelerating the rate of savings and investment to foster self-reliant economy, ICB
assumes an indispensable and pivotal role. Through the enactment of the Investment Corporation
of Bangladesh(Amendment) Act, 2000 (no. 24 of 2000), reforms in operational strategies and
business policies have been implemented by establishing and operating subsidiary companies
with ICB as the holding company.
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1.2 Ori gin of th e Report:
Internship means receiving practical experience through attending particular work physically.
Practically Internship means a way through which an internee, can gather experience about the
related subjects and be able to apply his theoretical experience in the field of real life action. Tomatch theoretical knowledge with that of practical field, internship plays a vital role for the
students of business education. Practical training is necessary to achieve complete knowledge
about something. Internship program is actually a form of practical training. With this program
the students get experiences and know that how much theoretical knowledge is deviated from the
real facts. To give that test, each business students of Department of Collage of business
Administration, International University of business Agriculture and technology has to carry out
an internship program. Thats why; I had been placed for internship program in InvestCorporation of Bangladesh (ICB) for a period of two months.
As a student of BBA, major in, Finance and Banking internship is an academic requirement. For
doing internship every student is required to work in a selected institution to enhance ones
practical knowledge and experiences.
For my internship I was sent to the Investment Corporation of Bangladesh (ICB), under the
supervision of Zahir Rayhan Salim, Department of Business Administration, International
University of Business Agriculture and Technology (IUBAT)). My supervisor asked me to
prepare a report on Performance evaluation of ICB Mutual Funds. I am doing the
internship at ICB from 23.10.2014 to 28.12.2014.
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1.3 Background of the Study:
Though ICB play a vital role in Bangladesh economy by accelerating the phase of
industrialization through the development of capital market and broadening the base of
investment few people have the knowledge about the corporation with vague meaning.
I have been placed in the Investment Corporation of Bangladesh (ICB) for internship program
and there was the opportunity to see the overall functions of the organization during my two
month internship program. As student of Department of Finance and Banking I have theoretical
knowledge and ICB is giving me the opportunity to gather knowledge in practical field.
I have got the opportunity to work in the Investment Corporation Bangladesh, as a part of the
internship program. It was time for me to get real life experience. Having understanding this I
decided to do my internship in renowned finance Corporation. Now a dayseverybody wants todo there internship in private bank as they are performing well. As I came to know that ICB is an
equity financer for the corporate investors and only disburse long term finance, and play a vital
role in capital market, I decide to do my internship in ICB.
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1.4 Objectives of the Study:
General objectives:
The main objective of this report is to assess the performanceEvaluation of ICB Mutual Funds,
the company named Investment Corporation of Bangladesh (ICB).
Specif ic objectives:
Specific objectives of this report are as follows:
1) To fulfill the requirement of BBA program as necessitated by Department of finance and
banking , International university of Business Agriculture and Technology (IUBAT).
2) To analyze the performance of ICB, its image and its role in the capital market of
Bangladesh.
3) To learn the practical aspect of the Investment Corporation of Bangladesh.4) To get aware about the working environment in advance that will help in adjusting a
student with the future working life.
5) To know the product of ICB at the securities market in Bangladesh.
6) To investigate the different functions performed by different department of ICB.
7) To investigate their different consumer perception & knowledge.
8) To explore the problems of ICB.
9) To give suggestion to overcome the problem.
10) To suggest how can they improve their services.
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1.5 Methodology of th e Study:
Methodology can be termed as underlying principles and rules of organization that work at the
background of the study. It clarifies the problem involving the research in an ordered and
systematic way. For this study data and other information can be collected by the following
ways :
Sources and Methods of Collecting Primary data:
Personal Interview: This is the most effective way to collect primary data. Through this
process the Trainee can confront a number of officials of ICB and shareholders. I interviewed
them by asking financial operation of ICB.
Briefing Session: In case of corporate organization, this method is very useful. Duringinternship period we visited different departments of ICB and took part briefing session .The
head of departments gave briefs the trainees which were very much useful for us and we
gathered some valuable information from their briefing.
By Observation : This process is very useful for gathering primary data. This process is
very costly, time consuming. Through this process limited but accurate data can be collected.
Sources and Methods of Collecting Secondary data
The secondary data had been collected with several relevant articles of the ICB.
These are given below:
ICB Annual Report (2012-2013). Annual Report of Mutual Fund (2012-2013). Annual Report of Unit Fund (2012-2013). Others materials of the Investment Corporation.
Other sources
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1.6 Scope of the Study:
The scope of the report was basically the operations and practices of Investment Corporation of
Bangladesh, in which I had undertaken the internship program. The scope of the study was in
the organization, Investment Corporation of Bangladesh (ICB). Since I was placed in the ICBand I worked in the head office, I gave my concentration on various important operations (ICB
AMCL, CML, and STCL). The study was confined only on the Head office and gave more
concentration on it. The data comparison was based on published information and an
additional survey was performed to get in-depth information, as it was the part of the objective
of the report. The empirical part included only published information and current practices of
Investment Corporation of Bangladesh.
1.7 L imi tation of th e Study:
In preparing this report I have faced a little limitation. During this Internship Report I have
worked all the departments of ICB one after another. So in this corporation part I mainly
connection of the functions of all departments. ICB is a large corporation, but study time is too
short on an organization like ICB and this was the main limitations of my Internship Program.
Other constraints I faced during the course of my study are as follows:
Relevant information is not available in English. Collecting information is a long process because of their paper base activity. Relevant papers and documents were not available sufficiently. At the time of face to face discussion with officials, there were no sufficient chairs and
tables.
Inadequate information. Our capital market is not so strong and mature so the various financial analyses cannot be
applied to judge the performance of the subsidiaries of ICB.
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Chapter: 2
Organization
Part
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2.1 H istori cal Background of I CB:
The striking contradiction in most of the underdeveloped world including Bangladesh is the large
availability of local capital on the one hand and a relatively small use of such capital in industry
on the other hand. Most of the privately owned capital is either invested in non- productivesector or has gone to safe haven in foreign countries. Large amounts of capital have also been
found in the pension funds and in the reserve of insurance companies. These funds if channeled
into industry, the problem of financing industrialization would be solved to a great extent.
Investors want to invest their surplus in investments, which offer safety, liquidity as well as
attractive rates of return. To meet the needs of investors of all types, a wide range and adequate
number of securities should be made available in the capital market. Institution and institutional
supports are absolutely necessary for such capital market activity. ICB, the national investment
house, is the lone organization to perform the activities by creating demand for securities and on
the other hand to ensure the supply of securities in Bangladesh capital markets. Investment
Corporation of Bangladesh was established on October 1, 1976, under the ICB ordinance No. XL
of 1976 to fulfill the following objectives:
To encourage and broaden the base of investment.
To develop the capital market.
To mobilize savings.
Through the recent enactment of The Investment Corporation of Bangladesh (Amendment) A2000 (XXIV of 2000), scope of ICBs activities through the formation of subsidiaries,have
been expanded. The companies were incorporated under Companies Act, 1994 with the Registrar
of Joint Stock Companies on December 5, 2000. Certificate of Commencement were also
obtained on the same day.
Preliminary registrations of the companies with the Securities and Exchange Commission (SEC)
were obtained on December 19, 2000 under certain terms and conditions. Subsequently,
Government of Bangladesh was approached to provide Tk. 5.25 corer soft loan to ICB to enable
it as the holding company to inject equities to the subsidiary companies. Anarrangement in this
behalf was signed between Government of Bangladesh & ICB on June14, 2001.
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2.2 ICB at a Glance:
Name: Investment Corporation of Bangladesh (ICB)
Date of Incorporation: October 1, 1976.
Nature: Investment Banking Company Related Law: Investment Corporation of Bangladesh Ordinance1976 (no. XL
1976)
Authorized capital: Tk. 1 billion
Paid Up Capital: Tk. 0.50 billion.
Face value of Share: Tk. 100.
Number of Shares: 10 million
Status: Corporation (Listed on the Stock Exchange).
Subsidiaries: ICB Asset Management Company Ltd. (AMCL)
ICB Capital Management Company Ltd. (CML)
ICB Security Trading Company Ltd. (STCL)
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2.3 Business Poli cy of the I CB:
The Corporation has adopted a realistic business policy framework within which its operation is
conducted. The corporation in its operating acts on commercial considerations with regard to the
interest of industry and commerce, investment climate, capital market depositors, investors andto the public interest generally.
The operational policies of the Corporation are as follows:
1) To act on commercial consideration with due regard to the interest of industry,
commerce, depositors, investors and to the public in general.
2) To provide financial assistance to projects subjects to their economic and commercial
viability.
3) To arrange equity and loans singly or through consortium of financial institutions
including banks.
4) Equity Support to projects and there by spreads the risks of understanding.
5) To develop and encourage entrepreneurs.
6) To diversify investments.
7) To inspire small and medium savers for investment in securities.
8) To create employment opportunities.
9) To encourage more investment in Agro-based and Information and CommunicationTechnology (ICT) sectors.
2.4 Objectives of the ICB:
The main objectives of ICB are as follows:
1. To provide for matters ancillary thereto.
2. To encourage and broaden the base of investments.3. To develop the capital market.
4. To mobilize savings.
5. To promote and establish subsidiary companies for business development.
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2.5 Vision of ICB:
ICB will be the leading responsible and environment friendly financial institution
operating in such a way that our fellow competitors watch, acknowledge and admire
emulates us as a role model of success.
2.6 Mission of ICB:
ordinance for fostering rapid growth of Bangladesh economy.
Being a financial architect, strive to established benchmark
of values, attitudes, behavior and commitments with earnest endeavor in generatingoptimum profits and growth for shareholders by efficient use of resources.
Being an innovative solution provider, put emphasis on
formulating total solution to foster mobilization of all domestic & NBR savings
into potential investment.
a performance leader, intended to lead by example,
operate in the interest of the customer & committed to do everything in their power
to for their customers everlasting trust.
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2.7 H ead Offi ce & Br anches:
Office of the Corporation
Head Office Local Office
BSB Building (12-15th Floors)
8, DIT Avenue, Dhaka-1000.
Post Box No. 2058
Phone : 9563455
E-mail : [email protected]
Kashfia Plaza (1st floor)
35/C, Nayapaltan,
VIP Road Dhaka-1000
Phone : (02) 9343288 , 8360815
E-mail : [email protected]
Branch Office
Chittagong
Delwar Bhaban (3rd floor)104, Agrabad Commercial AreaChittagong.Phone : (031) 714851, 727064E-mail : [email protected]
Ananda Tower (2nd floor)Jail RoadSylhet.Phone : (0821) 714703, 2830458E-mail : icbsyl@sol_bd.com
Sylhet
Rajshahi
Dr. Gaffar Plaza (2nd Floor)
Main Road, Shaheb Bazar
Rajshahi.
Phone:(0721)775402,774661
E-mail: [email protected]
Bogra
Afsar Ali Complex(4th floor)
Borogola, Raja Bazar Road,
Bogra.
Phone : (051) 66940, 66860
E-mail : [email protected]
Khulna
Dr. Gaffar Plaza (2 nd Floor)
Shaheb BazarRajshahi.
Phone :(0721)775402,774661
E-mail : [email protected]
Barisal
Barisal Plaza (2nd floor)
Hemayet Uddin Road,Barisal.Phone : (0431) 64404E-mail : [email protected]
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2.8Number of Employees of I CB:
Present
Personnel
1st class 2n class 3r class 4t class Total
Male 260 38 89 66 453
Female 48 09 15 05 77
Total 308 47 104 71 530
Figure1: Number of Employees of ICB.
0
50
100
150
200
250
300
1st Class2nd class
3ed class
260
3889
48
915
Male Female
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Directors
Kazi Safiqul Azam
Joint Secretary.Budget-1
Finance Division, Ministry Of Finance
Gokul Chandra Das
Joint Secretary (Administration)
Bank & Financial Institution Division
Ministry Of Finance
S.M. Moniruzzaman Executive Director
Bangladesh Bank
Dr. Md. Zillur Rahman
Managing Director,
Bangladesh Development Bank Ltd.
Pradip Kumar Dutta
CEO/MD
Sonali Bank Ltd.
Syed Abdul Hamid
Managing Director& CEO
Agroni Bank
S.M. Aminur Rahman
Managing Director& CEO
Janata Bank Ltd.
Md. Rezaul karim
Managing Director
Sadharan Bima Corporation
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2.10 Corporate Social Responsibi li ty:
ICB feels proud for its strong participation in the various CSR activities. In the financial year
2012-13, ICB contributed TK. 8.638 million to the following activities as:
Sponsored the 50 th anniversary celebration of Bangladesh Agricultural University,
Mymensingh.
Aided the faculty of business studies of Dhaka University for ICB- Dhaka University
Merit Awards and lecture series.
Contributed in Spectrum Engineering Consortium Limited under ICB- IT Support
(IISP) Program.
Sponsored the Bangladesh Olympic Association 2013 for 8 th Bangladesh Games.
Contributed to the victim of Rana Plaza Tragedy. Provided an important support to the institute of Bankers, Bangladesh (IBB) for
purchasing floor space under the CSR program.
Supported financially to the Gopalganj Zilla Samity and also to the Bangabandhu
Parishad of ICB.
Contributed to the computer Science and Engineering Dept. DU, Shanskrete dept.
DU.
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2.11 M anagement of I CB:
The Head office of the corporation as per the requirement of the ordinance of ICB is located
at Dhaka. The general direction and superintendence of the corporation created in a board of
directors, which consists of persons including the chairman and managing director of ICB
The board of dir ectors consists of th e fol lowing dir ectors:
a) The Chairman to be appointed by the government.
b) The directors to be appointed by the government from among persons serving under the
government.
c) One director to be nominated by the Bangladesh Bank The managing directors,
Bangladesh Shilpa Bank, Ex-office.
d) The managing directors, Bangladesh Shilpa Rin Sangstha, Ex-office.
e) Four other directors to be elected by the shareholders other than the government, BB,
BSB and BSRS.
f) The managing director of ICB to be appointed by the government.
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2.12 Organizational H ierarchy of I CB:
The new organizational Hierarchy of ICB is shown below:
Figu
re 2:
Orga
nizat
ional
Hier
arch
y of
ICB.
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(e) Corporate Fi nancial Advice
Companies and Government enterprises intending to go public often seek professional &
financial advice on corporate restructuring & reengineering. ICB through its expertise provide
such services.
(f ) Bank Guarantee Scheme
ICB introduced Bank Guarantee scheme in 2002-03. ICB provides
(i) Bid Bond for enabling the business people to participate in any tender o bidding;
(ii) Performance Bond for helping the business community to continue their business smoothly
by fulfilling their obligations promised by them to their clients;
(iii) Customs Guarantee for solving different disagreements between the customs authority and
the business classes at the initial stage. The maximum limit guarantee in Tk. 20 million and
would be issued against at least 20 per cent cash and 80 percent easily cashable securities or
against 100 per cent cash margin. Re-guarantee from other financial institution is required for
guarantee against the amount exceeding Tk. 20 million.
(g) Consumer credit Scheme
As part of business diversification program ICB has introduced Consumer Credit Scheme2003-04 looking at the need of various household commodities of different professionals of
govt., semi-govt., autonomous bodies and some established private sector organization. Under
this scheme one can enjoy minimum of Tk. 0.10 million but maximum of Tk. 0.50 million credit
facilities. The rate of interest on the loan is reasonable and competitive.
(h) L ease Fi nancing
ICB provides lease finance mainly for machinery, equipment and transport. ICB is in a position
to provide professional advice and financial assistance to the intending clients. The period of
lease, rental, and charges and other terms and conditions are determined on the basis of type of
assets and the extent of assistance required by the applicants. Since introduction of this scheme
in 1999 good responses have been received from the intending lessees.
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(i ) T rustee to the debentur e and Secur i ties assets
ICB is acting as trustee to the debenture issue and asset-backed securitized bonds. ICB acted as
trustee to the issue of 17 companies of which 7 companies has been redeemed successfully.
(j) Investors Scheme
The Investors' Scheme was introduced in June 1977. Over the years this scheme has grown
tremendously. ICB, at its discretion, may grant up to two times loan against the assets of an
account subject to a maximum limit of Tk. 0.3 million. An account holder may use the combined
balance of his/her equities and loan to buy shares/securities. To help the investors to develop
diversified and balanced portfolio to minimize risk and earn a reasonable return.
(k) I CB Unit Fund
It is an open-end mutual fund scheme launched in April 1981, through which the small and
medium savers get opportunities to invest their savings in a balanced and relatively low risk
portfolio. ICB has so far declared attractive dividends on units every year ranging from Tk. 11.50
to Tk. 25.00 per unit. Investment in units enjoys tax benefits, amount being applicable as per
law. However, under the ICBs restructuring program new unit certificates are being solICBs subsidiary company, the ICB Asset Management Company Ltd.
(l) ICB M utual F und
ICB has so far floated eight closed end mutual funds. The First ICB Mutual fund was floatedon 25 April 1980, while the Eighth ICB Mutual Fund was floated on 23 July 1996. The
aggregate size of these funds is Tk. 175 million. Dividends declared on the funds were very
attractive ranging from 15.00 to 210.00 per certificate for 2003- 04. One can invest in such funds
through the stock exchanges with which these funds are listed. Through corporate restructuring,
new mutual fund s are being floated through ICB Asset Management Company Ltd. asubsidiary of ICB.
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(p) Bangladesh F und
The capital market has fallen in great crisis at the end of 2010 and gone to more instable position
by losing the trust of investors and shortage of liquidity to the money market. To make the
capital market stable, the Government of Bangladesh has taken some steps and directed ICB totake the initiative to develop the base of capital market. The Board of Directors of ICB approved
to Sponsor an open end Mutual Fund namely Bangladesh Fund , the initial size of the fund is
Tk. 50 billion divided into 0.50 billion units at par value of Tk. 100.00 (one hundred) each and
face value of the fund will be Tk. 100.00 (one hundred) per unit.
The main objective of the fund is to stabilize the capital market, long-term development of
capital market and increase the supply of liquidity to the money market.
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2.14 Organi zational Analysis:
The financial results and some key financial ratios of ICB pertaining to profitability, liqudity and
solvency are given in the following table:
Table - Statement of financial results & some key financial ratios
Financial Results 2012 -13 2011 -12 Increase/
Decrease(%)
Total Income(TK. in million) 8487.5 6683.5 26.99
Total Expenses(TK. in million) 4025.9 2196.7 83.28
Profit before provision(TK. in
million)
4161.6 4486.8 (0.56)
Provision made(TK. in million) 520.2 633.9 (17.63)
Net Profit(TK. in million) 3941.4 3852.9 2.30
Financial Ratios 2012 -13 2011 -12 Increase/ Decrease(%)
Net Profit to Total Income(%) 464.4 576.8 (19.49)
Return on Investment (%) 148.8 148.9 (0.07)
Return on Equity(%) 178.0 149.5 19.06
Earnings Per Share(Tk.) 1167.8 1142.3 2.23
Book value per share (Tk.) 6587.8 7668.3 (14.09)
Dividend yield (%) 25.1 13.3 88.72
Dividend Payout Ratio(%) 428.1 437.7 (2.19) Price earning ratio (times) 170.5 328.2 48.05
Current Ratio (Times) 1.31:1 1.51:1 -
Debt -Equity ratio 19.63:100 0.39:100 -
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2.14.1 Financial Result:
(a) Total Income
In 2012 -2013 ICB earned a total income of Tk. 8487.5 million as compared to Tk.6683.5 million
earned in 2011 -2012 showing an increased by 26.99 percent. The major heads of income ICB
were capital gain, dividend income, interest income and income from fees and commissions.
During 2012 -2013 income from all heads including interest income went up compared to those
of the previous year. Of the total income of Tk. 8487.5 million the highest income being the
capital gain of Tk. 4947.0 million (58.29 percent) followed by interest income of Tk. 2549.3
million (30.04 percent) dividend and interest income on securities of Tk. 698.8 million (8.23
percent) fees and commissions of Tk. 215.0 million (2.53 percent) and Tk, 31.7 million (0.04
percent) as income from other sources. Due to efficient management of portfolio and favourablemarket condition income from capital gain stood at Tk. 4947.0 million in 2012 -2013, which was
33.65 percent higher than the capital gain of Tk. 3705.0 million of the previous year. despite stiff
competetion at the market by dnt of prudential cash and fund management, though the
corporation earned gross interest income of Tk. 2549.3 million lower than that of previous year.
Dividend income increased by 36.18 percent in the reporting year compared to previous year due
to satisfactory dividend performance by the companies selected in the portfolio.
(b) Total Expenditure
During 2012 -13 The total expenditure of the corporation stodd at Tk.4546.1 million as compared
to Tk. 2830.5 million in 2011 -12 showing an increasing of 60.61 percent over the previous year.
The major heads of expenditures were interest expanse of Tk. 3650.6 million which was Tk.
1846.9 million in previous year, showing a increase by 97.66 percent. other operating expanses
was Tk. 370540 million compared to Tk. 349.7 millionin 2011-12, registering an increase by
7.33 percent higher than that of the previous year, it was lower than the budgeted amount.
During the year provision of Tk. 14.6 million was provided against loans and advances.
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(c) Gross Profit
The gross profit before provision and tax was Tk. 4461.6 million in 2012 -13 compared to Tk.
4486.8 million in 2011 -12, showing an increase of 0.56 percent lower than last year.
(d) Net Income
During 2012 -13, ICBs net profit after tax increased to Tk. 3941.4 million from Tk. 3852.9
million in 2011 -2012 showing an increase of 2.30 percent.
(e) Dividend
The board of director of ICB recommended cash dividend at the rate of Tk. 25.00 peer share and
stock dividend at the rate of 25:100 for 2012 -13. Cash dividend at the rate of Tk. 15.00 per share
and stock dividend at the rate of 35:100 were paid in the previous year.
(e) Appropriation of Profit
The board of director of ICB recommended appropriation of Tk. 4484.7 million which includes
net profit of Tk. 3941.4 million of 2012 -13 and retained profit of Tk. 543.3 million of the
previous year.
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2.14.2 Net Profi t to total Income ratio:
In business, Net income also referred to as the bottom line, net profit, or net earnings is an
entity's income minus expenses for an accounting period.It is computed as the residual of all
revenues and gains over all expenses and losses for the period, and has also been defined as the
net increase in stockholder's equity that results from a company's operations. In the context of the
presentation of financial statements, the IFRS Foundation defines net income as synonymous
with profit and loss.
Net Profit to total Income = Net profit / Total Income
= 3,941,435,945/8,487,500,000
= 46.44%
Total Income & Net Profit
Figure 3: Chart of total income and net profit.
5276.26683.5
8487.5
3130.4
3855.2
3941.4
0
200
400
600
800
1000
1200
1400
2010-2011 2011-2012 2012-2013
Net Profit Total IncomeFinancial Year
Taka
in million
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2.14.4 Earni ngs per share (EPS):
Earnings per share (EPS) are the amount of earnings per each outstanding share of a company's
stock.
EPS = Net Profit / No. of share outstanding
= 3,941,435,945/33,750,000
= 116.78 (Tk.)
Earnings per share (EPS)
Figure 5: Diagram of Earning per Share.
2.14.5 Priceearn in gs ratio:
In stock trading, the P/E ratio (price-to-earnings ratio) of a share is the ratio of the market price
of that share divided by the annual Earnings per Share (EPS).
P/E ratio = Market price per share / EPS
= 1,991.25 / 116.78
= 17.05 (times)
At the 28 june 2013 Market price was TK. 1991.25
2010-2011,106.52
2011-2012,114.16
2012 - 2013, 116.78
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2.14.6 Book value per share:
Book Value per Shareis a recalculation of book value, wherein the total book value is divided by
the number of shares outstanding. This number is particularly useful in quickly calculating the
price to book ratio.
The book value per share formula is used to calculate the per share value of a company based on
its equity available to shareholders. The term "book value" is a company's assets minus its
liabilities and is sometimes referred to as stockholder's equity, owner's equity, shareholder's
equity, or simply equity.
Book value per share = Total Equity / NO. of outstanding shares
= 22,140,827,829/33,750,000
= 656.02 (Tk.)
Figure 6: Book value per Share.
2010-11,939.4
2011-12,1035.23
2012-13, 656.02
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2.14.7 Total I ncome and Net Profi t after Tax:
Figure 7: Total profit & net Profit after Tax.
2418.7
4370.1
3642.1
5276.2
6683.5
8487.5
302.3
1011.9 1116.3
3130.4
3852.9 3941.4
0
100
200
300
400
500
600
700
800
900
2007-8 2008-9 2009-10 2010-11 2011-12 2012-13
Total Income Net Profit af ter Tax
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Chapter: 3
Task done by
me at ICB
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3.1 Actual Task part:
In the period of my two months internship program, I have got a position and some duties in
Investment Corporation of Bangladesh. My observation and responsibilities are visiting all the
department of Investment Corporation of Bangladesh. From October 23, 2014 to December 28,
2014 I was working under the supervision of Uddipta Shahin Parag s who is the Senior Officer
of Manager of Human resource management department at Investment Corporation of
Bangladesh (Head Office).
On that time I learned many things about the various departments of Investment Corporation of
Bangladesh. Sometime I also worked as a data entry operator and many things.
3.2 Task Area:
In ICB my position is as an intern at all Department of ICB (Mainly the Human ResourceManagement Department). The hierarchy is given below;
Figure 8: Task Area
JBL
ICB
(GM AdminSecretariat)
Trustee Div.
Trustee Deptt.
Custodian Deptt.
Legal Affairs Div.
Law Deptt.
Documentationdeptt.
Establishment Div.
Real Estate Deptt.
Procur & CommonService Deptt.
Administration Div.
Human resourceManagementDepartment
My Position
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3.4 Visited Depar tment:
During my internship I have visited several department of ICB. Since I am an intern, so authority
gave me the permission to visit every department. My mission is to talk with them and collect the
information about the current condition of ICB and also the mutual funds of ICB. The following
departments listed are given below.
The Division wise various departments of ICB are given below:
Sl no. Division Departments Departmental Heads
1. Administration 1.Human Resource Management
2. Discipline grievance & appeal3. pension & welfare
Mr. Nuruzzaman Khan
HRM Department
Mrs. Ruksana Yasmin
Discipline, Grievance And Appeal
Dept. & Pension And Welfare
Department (Jointly)
2. Establishment 1. Procurement & service
2. Real state.
Mr. Helaluddin Ahmed
Procurement & Common Service
DepartmentMr. Md. Golam Mostofa
Real Estate Department
3. Secretaries 1. Secretaries
2. Public Relation.
Mr. Md. Al Amin Talukder
Secretary`s Department
Mr. Md. Anwar Shamim
Public Relations Department
4. Legal Affairs 1. Documentation
2. Law.
Mr. Md. Golam Rabbani
Documentation Department
Mr. Md. Noor Hossain Dhaly
Law Department
5. Planning 1. Planning Research & Business Mr. Md. Shariqul Anam
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&Research Development.
2. Portfolio Management.
PRBD Department
Mr. A.S.M. Haidaruzzaman
Portfolio Management Department
6. Accounts 1.Cental Accounts
2. Loan Accounts.
Mr. Mohammad Zaker Hossain
Central Accounts Department
Mr. Younus Chowdhury
Loan Accounts Department
7. Budget 1. Fund Management.
2. Budget & Risk Management.
Mr. Abu Taher Mohammad
Ahmedur Rahman
Fund Management Department
Mr. Mazeda Khatun
Budget And Risk Management
Department
8. Hardware &
Communication
1. Hardware & Communication
2. Data Administration & MIS
Mr. Md. Mofizur Rahman
Data Admin And Mis Department
& Hardware And Communication
Department (Jointly)
9. Software 1. Programming.2. System Analysis.
Mr.Md Enaitur Rahman
Mr. SK. Aslam Uddin
System Analysis Depertmen
10. Internal Control
& Complains
1. Audit.
2. Organization & methods.
3. Inspection & Complains.
Mr. Gazi Mustafa Haque
Audit Department
11. Trusty 1. Trusty
2. Custodian.
Mr. Md. Abdul Hoque
Trustee Department
Mr. Md. Ahia Mondal
Custodian Department
12. Credit 1. Appraisal.
2. Leasing.
Mrs. Parveen Sultana
Leasing Dept & Lien and General
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3. Leanne & General Credit. Credit Department(Jointly)
13. Merchandise 1. Investors.
2. Banker to the Issue.
Mr. Md. Shafiul Alam
Investors Department
Mr. Syed Mahamud Ahmed
Banker To The Issue Department
14. Depository 1. Share.
2. Securities Reconciliation.
Mr. Md. Serajul Huq
Shares Department
Mrs. Noorjahan Begum
Securities Reconciliation
Department
15. Implementation &
Recovery
1. Implementation
2. Recovery.
Mr. Md. Nazrul Islam
Implementation Department
Mr. Md. Rafiqul Islam
Recovery Department
16. EEF
Administration
1. EEF Administration
2. EEF Audit & Accounts
Mr. Md. Rafiqul Islam
EEF AdminDepartment & EEF
Audit And Accounts Department
(Jointly)
17. EEF Recovery &Legal Affairs
1. EEF Implementation &Recovery
2. EEF Legal Affairs.
Mr. Md. Rafique Ullah EEF Leagl Affairs Department
18. EEF Appraisal 1. EEF Agro.
2. EEF Non-Agro.
Mr. Provash Ranjon Roy
EEF Non Agro Department
19. Branch Affairs 1. Branch Affairs-1
2. Branch Affairs-2
Mr. Mujibur Rahman Khan
Branch Affairs Department-1 & 2
(Jointly)
20. Subsidiaries
Affairs
1. Subsidiaries Affairs-1
2. Subsidiaries Affairs-2
Mrs. Shukla Das
Subsidiary Affairs Department-1 &
2 (Jointly)
21. Mutual Fund 1. Unit Fund
2. Mutual Fund
Mr. Trailakshya Roy
Unit Fund Department
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Mr .A. L. M. Shahnawaze
22. ICB Securities Trading Company Ltd.
23. ICB Asset Management Company Ltd.
24. ICB Capital Management Company Ltd.
25. ICB Asset Reconstruction.
3.5 Observe the fu nction of the department:
I have no particular post in ICB. So my duty is to observe what are the functions of various
departments are and how they control everything. By the help of my supervisor, I am able to
know the function and fitted me in this situation and also collect information which will be
necessary to make my brilliant professional life. Those are given below.
Human Resource Management Department:
Appoints the manpower in the corporation. Handling all personal matters including confirmation, posting, transfer, fixation leave etc. Processing of all promotion and retirement.
Controlling of attendance. 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. To maintain the national salary scale, select the salary, pension, increasing the annual
salary etc.
Arrange training for the employee both in home and abroad. Maintaining liaison with ICB employeesunions.
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Di scipli ne, gri evance & appeal Department:
Make necessary rules, regulation & policies for efficient administration of the
corporation.
Taking action against the employee who gradually violets the rules & regulation of the
corporation.
Maintaining all types of disciplinary action of the corporation. For making a well-trained administration must me selected the rules and regulation. 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.
Pension & welf are Department:
Dealing retirement benefits i.e. gratuity, pension, provident fund etc. Determine corporations employees pension and gratuity Monthly pension payment Pension holders medical alliance define Future fund fee collection and reserve Invest pension fund in a profitable field Savings welfare accounts Policy Formulation/ Framing of Rules Interpretation of policy/ rules Relaxation of rules in individuals cases Exemption from rules Facilitating Redressed of grievances
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Procur ement & service Depar tment:
This department deals with purchase and sales office supplies, office equipments etc. Maintain the utility service like telephone bill, electric bill etc. Examine the quality of the product purchase. They also gave tender offer to the supplier or buyer for the purchase or sale of the scrapes
and wastage.
Secretary' s Department:
Arranging meeting of board of directors Executive Committee and other committee Placing working papers to the Boards of Director Maintaining attendance register of directors.
Obtaining signature of the chairman on the minutes book. Collect and send any action needed to approve or implement Maintaining register of shareholders of the company. Making payments of dividend to the shareholders. Arranging of Annual General Meeting
Publ ic Relati on Department:
Maintain the close relation with the ministry of Finance & other concern. Help publishing all types of official advertisement. Help focusing ICB through mass-media. Publish internal newsletter or journal etc.
L aw Department:
This department handles all the legal affair of ICB. Prepare legal documents, advance agreements, share agreements, demand promissory
notes, memorandum etc.
Process litigation cases, prepare legal notice and refer cases to legal advises and
coordinate with legal adviser in the court.
Prepare necessary memos for placement in the board meeting relating litigation & legal
affair.
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b) I nvestors Portfoli o Section The purchase of shares in the investors accounts. Receives shares from the transaction department for preservation. Send shares and. debentures at the time of book closure for making, registration in the
name of the particulars investors.
Receives shares and debenture from the companies after registration Collect bonus or right shares and allocate to accounts accordingly.
c) Sale and Wi thdrawal Section Receive sale and withdrawal order from the investors department. Examine the actual existence of securities and to get out of the same from the volt.
Give information to the computer department about salability of the Securities. Making arrangement for the signature of attorney & filling up of 117 forms. Send the securities to the investor department in case of withdrawal.
d) Di vidend coll ection Section Procurement of dividend and interest declared by the different companies
Unit Sales Department:
Act as manager of unit fund. Sell and issue unit certificate to the applicant. Repurchase unit certificate. Co-ordinate activities of Bank Branches in respect of unit sale and repurchase. Determine sale and repurchase prices of unit certificate it to Bank Branches and ICB
Branches.
Spilt and consolidate unit certificates is as requested by unit holders.
Issues and distributes Cumulative investment plan (CIP) Certificates. Cancellation of surrender certificate.
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Unit r egistration and procur ement department:
Register and transfer unit certificates Maintain separate register for unit holder CIP Verify signature of transfer deed Issuance dividend warrants and CIP c-Certificates to the holders. ICB Branches and Bank Branches as per requirement Coordinate all activities relating to procurement and issue of unit certificates.
M utual F unds Department:
Act as manager of all mutual funds. Prepare prospectus in connection with the floatation of mutual funds.
Receive applications form the general public in respect of new issues of mutual fund. Scrutinize the applications for allotment Of Shares against applications made. Arrange for lottery if necessary for allotment. Issue allotment letters/share certificates. Arrange refund of excess application money. Effect transfer and registration of certificates Issue dividend warrants to the holders of the certificates. Make correspondences with the branches of the Corporation, Banks and Certificate
holders.
Centr al A ccounts Department:
Preparation of salary statements, overtime Statement. Maintaining liaison with commercial audit and external audit. Preparation of annual budget and revise it as per requirement. Preparation of Financial Statement of the corporation.
Arranging call loan & term deposit.
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Computer Department:
Maintaining the network system. Developing new software. Servicing of hardware & Software troubleshooting. Maintaining bulk amount of data. Providing assistance to the officials for being efficient Computer use.
L oan Appraisal Department:
Receiving application from the entrepreneurs. Appraise the proposed project. Submit the appraisal report to the board and consortium.
Visit the project and make a feasibility, study on the proposed project.
Bu siness Development Cell :
Introduce new financial products. Maintaining liaison, with SADF. Provide creative ideas to diversify the business.
Project I mplementation Department:
Disbursement of loan as per sanctioned. Monitor the progress of the project. Provide counseling, for solution of any dispute and problems. Recommend for more loan if project need thereafter.
Recovery & F oll ow up Department:
Measures operational performance.
Meet the sponsors as the recovery would be smooth. Identifying the sick project and restructure them. Assist law department in case of default.
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Private Placements:
ICB is authorized to act as an agent of the issuers and investors for private placements of
securities. Under this arrangement, ICB places securities to individuals/institutions on behalf of
the issuer for which it charges fees. ICB also acquires shares/securities for its own portfolio both
in pre-IPO placement and equity investment.
Underwriting:
In order to raise long-term equity from the primary market, the government bodies,
enterprises, corporations or companies may seek intermediary assistance from ICB in the form of
underwriting. Because of its long and proven experience, reputation, asset back up and
established network of regional offices, ICB is an excellence position to attract the potential
investors to the proposed issue of shares, debentures and other securities for successful floatationof IPO and placement.
Custodian and Banker to the I ssues:
To act as the custodian to the public issue of Open-end & Closed-ended Mutual Funds,
ICB provides professional services. It also acts as the Banker to the issues and provides similar
services through the network of its branches.
M ergers and Acquisiti ons:
Companies willing to expand their business through mergers or acquisitions or to divest
projects that no longer fit into present scale of operation contact the Corporation. ICB provides
professional services & advice in respect of shaping up the cost and financial structures to ensure
best possible operational results. Besides, in case of divestment, the corporation, through
network and established business relationship, bring buyers and sellers together, help them
negotiate final agreement and advice on the emerging corporate structure.
Corporate Fi nancial A dvice:
Companies and Government enterprises intending to go public often seek professional &
financial advice on corporate restructuring & reengineering. ICB through its expertise provide
such services.
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Ban k Guarantee Scheme:
As part of ICB s, business diversification programs, the corporation introduced bank guarantee
scheme during the year 2002-2003. ICB provides:
i) Bid Bond for enabling the business people to participate in any tender or bidding.
ii) Performance Bond for helping the business community to continue the business
smoothly by fulfilling their obligations promised by them to their clients
iii) Customs Guarantee for solving different disagreements between the customs authority
and the business classes at the initial stage. The maximum limit of guarantee is Tk. 20
million and would be issued against at least 20% cash and 80% securities that can be
easily liquidated or against100% cash margin. Re-guarantee from other financial
institution is required for guarantee against the amount exceeding Tk. 20 million.
I CB Unit Fund:
It is an open-end mutual fund scheme launched in April 1981, through which the small
and medium savers get opportunities to invest their savings in a balanced and relatively low risk
portfolio. ICB has so far declared attractive dividends on units every year ranging from Tk. 11.50
to Tk. 25.00 per unit. Investment in units enjoys tax benefits, amount being applicable as per
law. However, under the ICB s restructuring program new unit certificates are being sold by
ICB s subsidiary company, the ICB Asset Management Company Ltd.
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Subsidi ari es Company of I CB:
I CB Securi ties Tr ading Company Ltd. (I STCL ):
ICB Securities Trading Company Limited (ISTCL) is a subsidiary of Investment Corporation of
Bangladesh (ICB) under the provisions contained in Section-2 of the Companies Act, 1994. It
was formed as a part of the restructuring programmer of ICB under Capital Market Development
programmer (CMDP) initiated by the Govt. of Bangladesh (GOB) and the Asian Development
Bank (ADB) and in terms of power conferred in the ICB Ordinance. The company was
incorporated with the Registrar of Joint Stock Companies and Firms under the Companies Act
1994 on 05 December 2000. The company obtained license from the Securities and Exchange
Commission on 12 August 2002 to carry on the stock brokerage business. The company started
its operation on 13 August 2002 upon the issuance of gazette notifications by the Government.
The company is being operated pursuant to its own Memorandum and Articles of Associations,
SEC's Rules and regulation and other applicable laws. It has independent Board of Directors and
separate management.
I CB Asset M anagement Company L td. (IA M CL):
ICB Asset Management Company Ltd. was established as part of the restructuring program me
of ICB under Capital Market Development Programmed (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. 1000 million and a nominal paid up capital of
Tk. 0.20 million, which was subsequently increased to Tk. 120.0 million, 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 to carry out the mutual fund activities. The company started its operation from July
01, 2002 upon issuance of Govt. gazette notification.
The company is engaged in investment management; more specifically floating and managing
both open-end and closed end mutual funds. The company is dedicated towards development of
mutual fund industry as well as the capital market of Bangladesh.
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I CB Capital M anagement L imited (I CML ):
Underwriting
In order to raise long term debt and equity from the primary market, the Government bodies,Enterprises Corporation or companies may seek intermediary assistance from ICML in the form
of underwriting.
I ssue Management
To act as the manager to the issue of shares and debentures, ICML provides professional services
in respect of syndicate underwriters and bankers to the issue. Besides, it also helps in preparing
prospectus, getting their approval from SEC and arranges publication of the same.
Placement of Shares
ICML acts as a placement agent.
I nvestment Coun seli ng
ICML provides investment counsel to the issuers and investors' including financial engineering
and corporate advisory services.
M anaging Investment Accounts
ICML, at its discretion, may grant loan at a ratio of 1:1 against the assets of an account subject to
a maximum limit of Tk.2.5 million. An accountholder may use the combined balance of his/her
equities and loan to buy shares/securities. To help the investors to develop diversified and
balanced portfolio to minimize risk and earn a reasonable return. ICML provides professional
advice and other support services.
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3.6 Commencement of operati ons of th e Subsidi ary Compan ies:
Formation & Registration of Three Subsidiary Companies 5 December 2000
ICB Capital Management Ltd. 1 July 2002
ICB Asset Management Company Ltd. 1 July 2002
ICB Securities Trading Company Ltd. 13 August 2002
Registration as a Trustee with SEC 20 August 2002
Registration as a Custodian with SEC 20 August 2002
Bank Guarantee Scheme 21 June 2003
Advance Against ICB Mutual Fund /ICB AMCL Unit Certificates
Scheme
21 June 2003
Consumer Credit Scheme 15 February 2004
Venture Capital Financing Scheme 26 April 2007
Purchase of own Land (Agargoan) 3 March 2008
Equity and Entrepreneurship Fund (EEF) 1 June 2009
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3.7 Perf ormance Evaluation of I CB M utual F unds:
Thus my Report topic is Performance Evaluation of ICB mutual funds . So before going to performance and evaluation part of ICB mutual funds, I write some important part of ICB mutual
funds and its activities.
3.7.1 Mutual Fund
Mutual Funds are also known as close ended Mutual Funds. The issued capital of a Mutual Fund
is limited, that is, a Mutual Fund offers a limited number of certificates for sale to the public. The
amount of capital and the number of certificates of each Mutual Fund remains unchanged. ICB
Mutual Funds are independent of one another. A Mutual Fund being listed is traded on the Stock
Exchanges. Price of Mutual Fund certificates after IPO is determined on the Stock Exchangesthrough interaction of supply and demand.
3.7.2 Types of Mutual Fund:
Any Mutual Fund could be of either of the following two kinds
Open-end Mutual Fund Close-end Mutual Fund
3.7.2.1 Open-end Mutual Fund:
Open-end investment company is a fund that continues to sale and repurchases their shares after
their initial public offering. They stand ready to sell additional number of shares and thus keep
going larger. The open-end fund company can by or sale their own shares.
3.7.2.2 Close-end Mutual Fund:
A close-end investment company operates like any other public firm. Their stock is traded on
regular secondary market and the market price of its shares is determined by the supply and
demand. It has a definite target amount for the funds and cannot sell more shares after its initial
offering. It s growths in terms of number of shares are issued like any other companys nissues listed and quoted it stock exchange.
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3.7.3Objective of Mutual Fund:
The objective of any fund would fit into one of three broad categories.
i) Income: The emphasis is on producing a steady flow of dividend payment.
ii) Capital gain: The manager concentrates on increasing the value of principal through
appreciation of the stocks held.
iii) Income and capital gain: Some combination of the first two approaches.
3.7.4Advantages of Mutual Fund:
Mutual Fund substantially minimizes the investment risk of small investors through
diversification in which funds are spread out into various sectors, companies, securities aswell as entirely different market.
Mutual Fund mobilizes the savings of small investor and channels them into lucrative
investment opportunities. As a result, Mutual Fund adds liquidity to the market.
Mutual Fund provides the small investors access to the whole market that at an individual
level, would be difficult if not impossible to achieve.
Because funds are professionally managed, investors are relieved from the emotional
strain associated with the day to day management of the fund. The investors save a great deal in transaction costs given that s/he has access to a large
number of securities by purchasing a single share of a Mutual Fund.
The investors can pick and chase a Mutual Fund to match his/her particular needs. Mutual Fund is the only vehicle which operates simultaneously both at the demand as
well as the supply side of the market. On the supply side, the Mutual Fund being itself
security at the SEC introduces a good and reliable instrument in the capital market for the
small but astute investor.
Mutual Fund is one of the most strictly regulated investment vehicles. The laws
governing Mutual Fundrequire exhaustive disclosure to the SEC as well as the general
public. The laws also entail continuous regulations of fund operations by the Trustee.
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3.8 Launching of ICB Mutual Fund:
Launch Mutual Fund in different period with different paid up capital.
Mutual Fund Date of Floatation Paid up capital (Tk. In million)
First ICB Mutual Fund 25 April,1980 7.50
Second ICB Mutual Fund 17 June,1984 5.00
Third ICB Mutual Fund 19 May,1985 10.00
Fourth ICB Mutual Fund 6 June, 1986 10.00
Fifth ICB Mutual Fund 8 June, 1987 15.00
Sixth ICB Mutual Fund 16 May,1988 50.00
Seven ICB Mutual Fund 30 June,1995 30.00
Eighth ICB Mutual Fund 23 July,1996 50.00
Source: Annual Report of ICB Mutual Fund 2012-13.
From the table we can see that, launching date 16 may 1988 and 23 July 1996, 6 th and 8 th ICB
Mutual fund paid up capital is high (50 million). The lunching date 17 June 1984 Second ICB
mutual fund paid up capital is low (5 million).
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3.9 Operati onal Resul t:
Table no. Net income for the year, distributable income per certificate, ex-dividend intrinsic
value per certificate.
Name of the fund Net income for the
year 2012-13 (Taka)
Distributable
income per
certificate as on 30
June 2013(TK)
Ex-dividend
net asset value
per
certificate(TK)
1st ICB Mutual Fund 75.63 161.71 872.30
2secon ICB Mutual Fund 44.10 90.14 215.61
3r ICB Mutual Fund 26.16 61.55 211.16
4t ICB Mutual Fund 29.24 66.33 205.24
5t ICB Mutual Fund 23.45 46.79 168.92
6t ICB Mutual Fund 10.99 20.53 49.64
7t ICB Mutual Fund 13.53 29.87 86.60
8t ICB Mutual Fund 12.47 25.99 59.09
Source: Annual report of ICB mutual funds 2012-13.
From the above table we can see that, during the period 2012-13, net income 1 st mutual fund is
high and low 6 th ICB mutual fund. The distributable income per certificate and Ex-dividend Net
asset value per certificate is high of ICB 1 st Mutual Fund and 6 th& 8 th Mutual fund is low.
3.10 Detail ed description of I CB mutual funds:
ICB is the pioneer organization of initiating mutual fund in BD. The countrys first fund, theFirst ICB Mutual Fund was lunched on 25April 1980.Since then ICB had floated 8 Mutualfunds of total capital of TK. 175.0 million up to investors as a rewarding and relatively safe
investment instrument because of their strong and steady performance in terms of dividend and
portfolio management.
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3.10.1 F ir st I CB M utual Fu nd
The 1 st ICB Mutual Fund was floated at 25 th April, 1980, under regulation 29 A of ICB (General)
Regulation with a total capital of TK. 50,000 certificates of TK. 100 each. It is the most
attractive mutual fund among the others.
Dividend and Interest income:
The Fund had earned an amount of TK. 12.439 million as dividend from investment of securities
of 78 companies during 2012-13 of which a sum of TK. 7.607 million (61.16 %) received in cash
within 30 June 2013.
Capital Gains on Sale of I nvestments :
During 2012-13, the fund has earned TK. 46.091 million as capital gain against TK. 57.108
million earned during 2011-2012 by selling securities of 31 companies.
I ncome, expense and distr ibutabl e in come:
During the year under review, the fund has earned a gross income of TK. 60.821 million by way
of dividend and interest income from investment of shares and debentures/bonds amounting of
TK. 12.439 million, TK. 2.291 million as interest on bank deposits, TK. 46.091 million as capital
gains and other income. After deducting the total expense of TK. 4.095 million incurred as staffexpense, interest on current account with ICB, management fee, printing and stationary, postage
and telegram, bank charges, provision against investment and other expense the net income of
the fund stood at TK. 56.725 million.
Dividend:
The declared dividend at the rate of 700.00 percent against each certificate of TK. 10.00 which
was 600.00 % in the previous year. After making provision of TK. 52.500 million for payment of
dividend the fund had an undistributed income of TK. 68.785 million.
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Dividend performance of ICB Mutual Fund:
Table; Year wise dividend performance
Name of the fund Financial year
First ICB Mutual fund 2008-9
(TK)
2009-10
(TK)
2010-11
(TK)
2011-12
(TK)
2012-13
(TK)
310.00 400.00 500.00 600.00 700.00
Source: Annual report of ICB Mutual Funds 2012-13.
From the table we can see that, First ICB mutual fund dividend performance (2012-13) is high
(TK.700) and (2008-9) is low (TK.310).
Portfolio:
During 2012-13 the fund investment TK. 59.537 million in securities of different sectors. As on
30 June 2013 the fund had securities of 131 companies and 23 mutual funds in its portfolio with
a total cost of TK. 161.049 million, the market value of which was TK. 737.715 million.
The Ex-dividend net asset value per certificate of TK. 10.00 each of First ICB mutual fund stood
at TK. 872.30 as on 30 June 2013.
At DSE the opening and closing market price per certificate of First mutual fund of TK. 10.00
each was TK. 879.00 and TK. 932.00 respectively in 2012-2013.
The number of certificate holders of the fund was 815 as on 30 June 2013.
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3.10.2 Second I CB M utual F und
The Second ICB Mutual Fund was established in June 1984, under regulation 29 A of ICB
(General) Regulation with a total capital of TK. 50,00000dividend into 50000 certificates of TK.
100 each. The manager of the fund is vested with ICB.
Dividend and Interest income:
The Fund had earned an amount of TK. 4.718 million as dividend from investment of securities
of 75 companies during 2012-13 of which a sum of TK. 4.312 million (91.37 %) was received in
cash within 30 June 2013.
Capital Gains on Sale of I nvestments :
During 2012-13, the fund has earned TK. 18.760 million as capital gain against TK. 15.096
million earned during 2011-2012 by selling securities of 22 companies.
I ncome, expense and distri butabl e in come:
During the year under review, the fund has earned a gross income of TK. 25.143 million by way
of dividend and interest income from investment of shares and debentures/bonds amounting of
TK. 4.718 million, TK. 1.664 million as interest on bank deposits, TK. 18.760 million as capital
gains and other income. After deducting the total expense of TK. 3.094million incurred as staffexpense, interest on current account with ICB, management fee, printing and stationary, postage
and telegram, bank charges, provision against investment and other expense the net income of
the fund stood at TK. 22.048 million.
Dividend:
The declared dividend at the rate of 375.00 percent against each certificate of TK. 10.00 which
was 300.00 % in the previous year. After making provision of TK. 18.750 million for payment of
dividend the fund had an undistributed income of TK. 26.321 million.
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Dividend performance of ICB Mutual Fund:
Table; Year wise dividend performance
Name of the fund Financial year
Second ICB Mutual
fund
2008-9
(TK)
2009-10
(TK)
2010-11
(TK)
2011-12
(TK)
2012-13
(TK)
95.00 200.00 250.00 300.00 375.00
Source: Annual report of ICB Mutual Funds 2012-13.
From the table we can see that, Second ICB mutual fund dividend performance (2012-13) is high
(TK.375.00) and (2008-9) is low (TK.95).
Portfolio:
During 2012-13 the fund has made investment of TK. 40.865 million in securities of different
sectors. As on 30 June 2013 the fund had securities of 132 companies and 22 mutual funds in its
portfolio with a total cost of TK. 97.567 million, the market value of which was TK. 173.382
million.
The Ex-dividend net asset value per certificate of TK. 10.00 each of Second ICB mutual fund
stood at TK. 215.61 as on 30 June 2013.
At DSE the opening and closing market price per certificate of Second mutual fund of TK. 10.00
each was TK. 200.00 and TK. 305.50 respectively in 2012-2013.
The number of certificate holders of the fund was 858 as on 30 June 2013.
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3.10.3 Thi rd I CB M utual F und
The third ICB Mutual Fund was established in May 1985, under regulation 29 A of ICB
(General) Regulation with a total capital of TK. 100,00,000dividends into 1,00,000 certificates of
TK. 100 each. The manager of the fund is vested with ICB.
Dividend and Interest income:
The Fund has earned an amount of TK. 5.036 million as dividend and interest from investment of
securities of 80 companies during 2012-13 of which, TK. 4.280 million (84.99 %) was received
in cash within 30 June 2013.
Capital Gains on Sale of I nvestments :
During 2012-13, the fund has earned TK. 21.056 million as capital gain against TK.
20.673million earned during 2011-2012 by selling securities of 19 companies.
I ncome, expense and distri butabl e in come:
During the year under review, the fund has earned a gross income of TK. 30.237 million by way
of dividend and interest income from investment of shares and debentures/bonds amounting of
TK. 5.036 million, TK. 4.145 million as interest on bank deposits, TK. 20.656 million as capital
gains and other income. After deducting the total expense of TK. 4.076 million incurred as staffexpense, interest on current account with ICB, management fee, printing and stationary, postage
and telegram, bank charges, provision against investment and other expense the net income of
the fund stood at TK. 26.161 million. Fund has net distributable total income of TK. 61.550
million and per certificate income of TK. 61.55 as on June 2013.
Dividend:
The declared dividend at the rate of 240.00 percent against each certificate of TK. 10.00 which
was 200.00 % in the previous year. After making provision of TK. 24.000 million for payment of
dividend the fund had an undistributed income of TK. 37.550 million.
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Dividend perf ormance of I CB M utual F und:
Table; Year wise dividend performance
Name of the fund Financial year
Third ICB Mutual fund 2008-9
(TK)
2009-10
(TK)
2010-11
(TK)
2011-12
(TK)
2012-13
(TK)
85.00 140.00 185.00 200.00 240.00
Source: Annual report of ICB Mutual Funds 2012-13.
From the table we can see that, Third ICB mutual fund dividend performance (2012-13) is high
(TK.240.00) and (2008-9) is low (TK.85.00).
Portfolio:
During 2012-13 the fund has made investment of TK. 41.210 million in securities of different
sectors. As on 30 June 2013 the fund had securities of 147 companies and 22 mutual funds in its
portfolio with a total cost of TK. 115.853 million, the market value of which was TK. 275.074
million.
The Ex-dividend net asset value per certificate of TK. 10.00 each of ThirdICB mutual fund
stood at TK. 211.16 as on 30 June 2013.
During 2012-13, the opening and closing market price per certificate of Third ICB mutual fund
of TK. 10.00 each was TK. 145.00 and TK. 208.90 respectively in DSE. The number of
certificate holders of the fund was 1202 as on 30 June 2013.
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Dividend perf ormance of I CB M utual F und:
Table; Year wise dividend performance
Name of the fund Financial year
Fourth ICB Mutual
fund
2008-9
(TK)
2009-10
(TK)
2010-11
(TK)
2011-12
(TK)
2012-13
(TK)
80.00 125.00 165.00 185.00 240.00
Source: Annual report of ICB Mutual Funds 2012-13.
From the table we can see that, Fourth ICB mutual fund dividend performance (2012-13) is high
(TK.240.00) and (2008-9) is low (TK.80.00).
Portfolio:
During 2012-13 the fund has made investment of TK. 42.917 million in securities of different
sectors. As on 30 June 2013 the fund had securities of 143 companies and 23 mutual funds in its
portfolio with a total cost of TK. 119.165 million, the market value of which was TK. 271.161
million.
The Ex-dividend net asset value per certificate of TK. 10.00 each of Fourth ICB mutual fund
stood at TK. 295.24 as on 30 June 2013.
At DSE the opening and closing market price per certificate of fourth ICB mutual fund of TK.
10.00 each was TK. 141.50 and TK. 200.00 respectively in 2012-2013.
The number of certificate holders of the fund was 1378 as on 30 June 2013.
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3.10.5 F if th I CB Mu tual Fund:
The Fifth ICB Mutual Fund was established in June 1987, under regulation 29 A of ICB
(General) Regulation with a total capital of TK. 15,000,000dividend into 1, 50,000 certificates of
TK. 100 each. The manager of the fund is vested with ICB.
Dividend and Interest income:
The Fund has earned an amount of TK. 8.206 million as dividend from investment of securities
of 92 companies during 2012-13 of which a sum of TK. 7.314 million (89.13 %) was received in
cash within 30 June 2013.
Capital Gains on Sale of I nvestments :
During 2012-13, the fund has earned TK. 23.039 million as capital gain against TK. 26.060
million earned during 2011-2012 by selling securities of 20 companies.
I ncome, expense and distri butabl e in come:
During the year under review, the fund has earned a gross income of TK. 38.268 million by way
of dividend and interest income from investment of shares and debentures/bonds amounting of
TK. 8.206 million, TK. 7.023 million as interest on bank deposits, TK. 23.039 million as capital
gains and other income. After deducting the total expense of TK. 3.096 million incurred as staffexpense, interest on current account with ICB, management fee, printing and stationary, postage
and telegram, bank charges, provision against investment and other expense the net income of
the fund stood at TK. 35.172 million.
Dividend:
The declared dividend at the rate of 200.00 percent against each certificate of TK. 10.00 which
was 170.00 % in the previous year. After making provision of TK. 30.00 million for payment of
dividend the fund had an undistributed income of TK. 40.186 million.
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Dividend performance of ICB Mutual Fund :
Table; Year wise dividend performance
Name of the fund Financial year
Fifth ICB Mutual fund 2008-9
(TK)
2009-10
(TK)
2010-11
(TK)
2011-12
(TK)
2012-13
(TK)
56.00 100.00 135.00 170.00 200.00
Source: Annual report of ICB Mutual Funds 2012-13.
From the table we can see that, Second ICB mutual fund dividend performance (2012-13) is high
(TK.200.00) and (2008-9) is low (TK.56.00).
Portfolio:
During 2012-13 the fund has made investment of TK. 45.046 million in securities of different
sectors. As on 30 June 2013 the fund had securities of 160 companies and 25 mutual funds in its
portfolio with a total cost of TK. 153.452 million, the market value of which was TK. 350.232
million.
The Ex-dividend net asset value per certificate of TK. 10.00 each of Second ICB mutual fund
stood at TK. 168.92 as on 30 June 2013.
At DSE the opening and closing market price per certificate of Second mutual fund of TK. 10.00
each was TK. 138.00 and TK. 193.10 respectively in 2012-2013.
The number of certificate holders of the fund was 216 as on 30 June 2013.
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3.10.6 Sixth I CB M utual F und:
The Sixth ICB Mutual Fund was established in May 1988, under regulation 29 A of ICB
(General) Regulation with a total capital of TK. 50,000,000 dividend into 5, 00,000 certificates
of TK. 100 each. The manager of the fund is vested with ICB.
Dividend and Interest income:
The Fund had earned an amount of TK. 7.408 million as dividend from investment of securities
of 95 companies during 2012-13 of which a sum of TK. 6.539 million (88.27 %) was received in
cash within 30 June 2013.
Capital Gains on Sale of I nvestments :
During 2012-13, the fund has earned TK. 48.617 million as capital gain against TK. 49.615
million earned during 2011-2012 by selling securities of 36 companies.
I ncome, expense and distri butabl e in come:
During the year under review, the fund has earned a gross income of TK. 59.761 million by way
of dividend and interest income from investment of shares and debentures/bonds amounting of
TK. 7.408 million, TK. 3.736 million as interest on bank deposits, TK. 48.617 million as capital
gains and other income. After deducting the total expense of TK. 4.795 million incurred as staffexpense, interest on current account with ICB, management fee, printing and stationary, postage
and telegram, bank charges, provision against investment and other expense the net income of
the fund stood at TK. 54.965 million.
Dividend:
The declared dividend at the rate of 105.00 percent against each certificate of TK. 10.00 which
was 100.00 % in the previous year. After making provision of TK. 52.50 million for payment of
dividend the fund had an undistributed income of TK. 50.135 million.
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Dividend performance of ICB Mutual Fund:
Table; Year wise dividend performance
Name of the fund Financial year
Second ICB Mutual
fund
2008-9
(TK)
2009-10
(TK)
2010-11
(TK)
2011-12
(TK)
2012-13
(TK)
37.00 75.00 90.00 100.00 105.00
Source: Annual report of ICB Mutual Funds 2012-13.
From the table we can see that, Second ICB mutual fund dividend performance (2012-13) is high
(TK.105.00) and (2008-9) is low (TK.37.00).
Portfolio:
During 2012-13 the fund has made investment of TK. 59.072 million in securities of different
sectors. As on 30 June 2013 the fund had securities of 196 companies and 26 mutual funds in its
portfolio with a total cost of TK. 205.296 million, the market value of which was TK. 352.487
million.
The Ex-dividend net asset value per certificate of TK. 10.00 each of SixthICB mutualfunds stood
at TK. 49.64 as on 30 June 2013.
At DSE the opening and closing market price per certificate of Sixth ICB mutual fund of TK.
10.00 each was TK. 49.90 and TK. 61.30 respectively in 2012-2013.
The number of certificate holders of the fund was 5154 as on 30 June 2013.
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3.10.7 Seventh I CB M utual F und:
The Seventh ICB Mutual Fund was established in June 1995, under regulation 29 A of ICB
(General) Regulation with a total capital of TK. 30,000,000dividend into 300000 certificates of
TK. 100 each.
Dividend and Interest income:
The Fund had earned an amount of TK. 7.652 million as dividend from investment of securities
of 95 companies during 2012-13 of which a sum of TK. 6.728 million (88 %) was received in
cash within 30 June 2013.
Capital Gains on Sale of I nvestments :
During 2012-13, the fund has earned TK. 27.733 million as capital gain against TK. 31.746
million earned during 2011-2012 by selling securities of 24 companies.
I ncome, expense and distri butabl e in come:
During the year under review, the fund has earned a gross income of TK. 44.293 million by way
of dividend and interest income from investment of shares and debentures/bonds amounting of
TK. 7.652 million, TK. 8.908 million as interest on bank deposits, TK. 27.733 million as capital
gains and other income. After deducting the total expense of TK. 3.713 million incurred as staffexpense, interest on current account with ICB, management fee, printing and stationary, postage
and telegram, bank charges, provision against investment and other expense the net income of
the fund stood at TK. 40.580 million.
Dividend:
The declared dividend at the rate of 120.00 perc