The fund manager of the country's largest ever open-end fund-- Bangladesh Fund-- has continued its efforts to make the fund lucrative to ensure attractive dividend.
ICB Asset Management Company Limited (AMCL), the fund manager of the Bangladesh Fund, has sought the support of finance ministry to increase the size of the fund.
"We are expecting more funds from banks and financial institutions through the intervention of the ministry," said Md. Golam Rabbani, the managing director of the ICB AMCL.
After the 2010-11 stock market debacle, the state-run Investment Corporation of Bangladesh (ICB) floated the Bangladesh Fund with an objective of stabilising the capital market along with declaring attractive dividend to the unit holders.
The initial size of Bangladesh Fund was fixed Tk 50 billion and the size of the fund stood at only Tk 17.80 billion as of June 30, 2018.
Rabbani mentioned due to some reasons Bangladesh Fund is yet to fulfill its target.
He said the fund was floated as part of the ICB's market supportive measure.
Later, the fund witnessed erosion of the securities as the market is yet to reach the level observed before the debacle, said Mr. Rabbani.
According to prospectus, the Bangladesh Fund was floated targeting prospective investors such as NRBs, local investors, state-owned banks and financial institutions, autonomous bodies, private commercial banks, insurance companies, non-banking financial institutions, merchant banks, and individuals.
An official of the ICB AMCL said on anonymity that some institutions also had not provided supports as per their promise.
"That's why the launching of Bangladesh Fund was not as per our expectation," the official said.
Rabbani, managing director of ICB AMCL, also said the purchase of the units of the Bangladesh Fund is yet to be up to the mark as investors prefer ICB's other mutual funds having better dividend pay outs.
"The dividend pay out of Bangladesh Fund will be satisfactory if the size of the fund is increased gradually," Rabbani said.
He also said the ICB AMCL has continued its efforts to increase the sales of units of the Bangladesh Fund.
He also blamed wrong doings executed by fund managers behind investors' poor interest to overall mutual fund industry.
"ICB AMCL is conducting marketing to enhance the size of Bangladesh Fund."
Of Tk 17.80 billion of Bangladesh Fund, Tk 15 billion came from sponsors and remaining Tk 2.80 billion came through sales of units.
