ICB Asset Management to sell 6m more units of Golden Jubilee MF

ICB Asset Management Company plans to sell another 6 million units of "ICB AMCL CMSF Golden Jubilee Mutual Fund" at the prevailing market price within 30 working days from Thursday.
The sponsor of the close-ended mutual fund wants to sell these units, out of its total holdings of 17 million, in the public/block market of the Dhaka Stock Exchange, according to a filing with the Dhaka Stock Exchange on Thursday.
The mutual fund price closed at Tk 16 per unit on Thursday, valuing the stake at Tk 96 million.
Last month, ICB Asset Management, a subsidiary of Investment Corporation of Bangladesh, sold 3 million units of the Golden Jubilee Fund.
"The sale proceeds will be invested in the Treasury bonds to comply with the regulatory requirement as well as to diversify our investment portfolio," said Mazeda Khatun, chief executive officer (CEO) of ICB Capital Management at that time.
As per the securities rules, intermediaries -- merchant bankers, portfolio managers, asset managers, stocks dealers, and mutual funds -- shall invest at least 1 per cent of their own portfolios in the listed T-bonds to lower the portfolio risk.
Even after selling another 6 million units, ICB Asset Management will have 11 million units in the Golden Jubilee fund, much higher than what is legally binding for sponsors.
The net asset of the MF stood at Tk 857 million on the basis of the current market price and Tk 1.03 billion on the basis of cost price after considering all assets and liabilities of the fund, as of July 2 this year.
The trustee of the fund has approved 2.50 per cent cash dividends based on net income for the year ended in December last year.
The Golden Jubilee Mutual Fund was launched in September 2022 on the occasion of the golden jubilee of the Independence of Bangladesh and to commemorate the Mujib Borsho.
The total size of the fund is Tk 1 billion with a face value of Tk 10 per unit. The total unit of the fund is 100 million.
Capital Market Stabilization Fund (CMSF), the main sponsor of the fund, provided Tk 500 million and the ICB Asset Management, the fund manager, contributed Tk 200 million while the Investment Corporation of Bangladesh (ICB) provided Tk 50 million as pre-IPO placement.
The remaining Tk 250 million was collected through an initial public offering (IPO) from general investors.
Currently, 37 close-ended mutual funds are listed on the stock market and 32 of them are trading at far below the face value of Tk 10 each unit.

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