The earnings of most of the mutual funds declined significantly in January-March quarter of 2018 than that of the same period of previous year mainly due to 'correction' in the capital market.
The earnings per unit (EPU) of some mutual funds declined up to 88 per cent during the period of this year compared to the same period of previous year.
Fund managers blamed the 'sharp correction' in broad index and daily market turnover for mutual funds' poor EPU during the quarter when the DSEX, the broad index of Dhaka Stock Exchange (DSE), declined 651 points as on March 29.
On the other hand, the turnover declined significantly during the January-March quarter of 2018 as compared to same quarter of previous year.
The DSE observed a daily turnover of above Tk 10 billion in most of the sessions during January-March, 2017, whereas in many sessions the DSE observed a daily turnover below Tk 3.0 billion during January-March, 2018.
Shahidul Islam, CEO of VIPB Asset Management Company, said the EPU declined mainly because of falling trend of the capital market.
"It's all about the capital market as the operation of mutual funds completely depends on the market," he said.
He said the net asset values (NAVs) of mutual funds were better in January-March in spite of correction of the capital market.
"In that sense, the performance of mutual funds was better compared to the growth of capital market during January-March, 2018," Shahidul added.
The EPU of ICB AMCL Second Mutual Fund declined 88 per cent to close at Tk 0.04 for January-March 2018 as against Tk 0.36 for January-March 2017. The NAV per unit at market price was Tk 9.42 and at cost price was Tk 13.59 as on March 31, 2018.
According to quarterly disclosures, the EPU of ICB AMCL 2nd NRB Mutual Fund declined 74 per cent to close at Tk 0.08 for January-March 2018 as against Tk 0.31 for January-March 2017. The fund's NAV per unit at market price was Tk 11.13 and at cost price Tk 14.89 as on March 31, 2018.
In January-March last, the EPU of ICB AMCL Sonali Bank Limited 1st Mutual Fund was Tk 0.15, some 31 per cent lower than Tk 0.22 for January-March 2017. The NAV per unit at market price was Tk 9.51 and at cost price Tk 11.34 as on March 31, 2018
The EPU of ICB AMCL Third NRB Mutual Fund declined 84 per cent to close at Tk 0.04 for January-March 2018 as against Tk 0.25 for January-March 2017. The NAV per unit at market price was Tk 8.14 and at cost price Tk 11.79 as on March 31, 2018.
The EPU of ICB Employees Provident MF1: Scheme1 declined 80 per cent to close at Tk 0.08 for January-March 2018 as against Tk 0.41 for January-March 2017. The NAV per unit at market price was Tk 8.10 and at cost price Tk 12.26 as on March 31, 2018.
ICB AMCL First Agrani Bank Mutual Fund reported EPU of Tk 0.20 for January-March 2018. The NAV per unit at market price was Tk 10.31 and at cost price Tk 10.71 as on March 31, 2018.
The EPU of Prime Bank 1st ICB AMCL Mutual Fund stood at Tk 0.12 for January-March 2018 as against Tk 0.22 for January-March 2017. The NAV per unit at market price was Tk 9.75 and at cost price was Tk 11.94 as on March 31, 2018.
A senior official of the ICB Asset Management Company Limited said they have not been able to realise capital gain during January-March 2018 as the share prices declined significantly.
"That's why, the EPU of our mutual funds declined for January-March like the funds managed by other fund managers," said the official of ICB Asset Management Company Limited.
Of other mutual funds, IFIL Islamic Mutual Fund-1 reported EPU of Tk 0.07 for January-March 2018 as against Tk 0.15 for January-March 2017. The fund's NAV per unit at market price was Tk 9.34 and at cost price Tk 11.44 as on March 31, 2018.
Phoenix Finance 1st Mutual Fund reported EPU of Tk 0.05 for January-March 2018 as against Tk 0.29 for January-March 2017. The NAV per unit at market price was Tk 8.47 and at cost price was Tk 11.93 as on March 31, 2018.
In January-March 2018, the EPU of EXIM Bank 1st Mutual Fund declined to Tk 0.08 against Tk 0.12 for January-March 2017, whereas the EPU of First Bangladesh Fixed Income Fund declined to Tk (0.00) against Tk 0.10, AB Bank 1st Mutual fund to Tk 0.09 against Tk 0.11, Trust Bank 1st Mutual Fund to Tk (0.00) against Tk 0.13, EBL First Mutual Fund to Tk 0.05 against Tk 0.10, Grameen One : Scheme Two Tk 0.13 against Tk 0.27, PHP First Mutual Fund to Tk 0.09 against Tk 0.20, Popular Life First Mutual Fund to Tk (0.02), a loss per unit, against Tk 0.10 and EBL NRB Mutual Fund to Tk 0.02 against Tk 0.10.
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