Values of assets managed under the portfolios of listed mutual funds (MFs) rose moderately on the basis of market price in last three months following surge of the share prices of many companies.
Net Asset Value (NAV) of listed MFs rose up 27 per cent per unit during May 31 to August 27 following a sharp rise observed in broad index of the Dhaka Stock Exchange.
During the same period, NAVs of many MFs have seen marginal rise following poor sell-buy conducted by asset managers.
"Greater portion of funds are invested in listed securities. Usually, NAVs of MFs will rise on the basis of market price following the rise in capital market," said Shahidul Islam, chief executive officer (CEO) of VIPB Asset Management.
DSEX, the broad index of Dhaka Stock Exchange (DSE), closed at 4060 points on May 31.
Later, the core index closed at 4873 points on August 27 with a rise of 20 per cent or 813 points.
Mr. Islam said rise in asset values almost has almost remained flat for last three months on the basis of cost price as the asset management companies (AMCs) were not able to conduct buy-sell.
"AMCs injected funds in listed securities long ago. Growth of NAVs on the basis of cost price remains flat as the differences between current market prices and cost prices are yet to be significant," said Mr. Islam.
On August 27, ICB AMCL Third NRB MF reported its NAV of Tk 6.94 per unit on the basis of market price. The value was Tk 5.52 on May 31.
As a result, the fund's NAV rose 25.72 per cent in last three months on the basis of market price.
On the other hand, the fund's NAV rose 0.42 per cent during same period on the basis of cost price.
ICB AMCL Agrani Bank MF witnessed 20 per cent rise in NAV on the basis of market price during May 31 to August 27. The fund's NAV rose 0.82 per cent on the basis of cost price.
During the same period, the NAV of ICB Employees Provident Fund MF1 rose 24 per cent, IFIL Islamic Bank 19.30 per cent, AB Bank 1st MF 15.36 per cent, CAPM BDBL MF 15 per cent, AIBL First Islamic MF 14 per cent, NCC Bank Limited MF1 14 per cent, PHP First MF 11.18 per cent, Popular Life Fist MF 11 per cent, and Grameen One 16 per cent on the basis of market price.
NAVs of these MFs rose ranging from 0.09 per cent to 3.0 per cent on the basis of cost price.
As per existing rules, AMCs are required to invest at least 60 per cent of the funds in listed securities.
"Most of the AMCs had injected at least 90 per cent of the funds in listed securities. That's why, the market witnessed little fresh investments from the MFs in last three months," said the CEO of VIPB Asset Management.
Presently, there are 37 closed-end MFs listed on both the stock exchanges.
Market prices of majority number of listed MFs are being traded below face value of Tk 10.
Units of only five MFs are being traded above face value. The funds are Prime Finance First MF, CAPM IBBL Islamic MF, Southeast Bank 1st MF, NLI First MF, and SEML FBLSL Growth Fund.
