ICB Asset Management to sell Golden Jubilee Fund stake to invest in T-bonds

ICB Asset Management Company has decided to sell its 15 per cent stake in ICB AMCL CMSF Golden Jubilee Mutual Fund at the prevailing market price within 30 working days from Wednesday [May 29].
The sponsor of the close-ended mutual fund wants to sell 3 million units out of its total holdings of 20 million in the public/block market of the Dhaka Stock Exchange, according to a stock exchange filing.
The mutual fund closed at Tk 17.9 per unit on Wednesday, meaning the market value of the stake at the rate will be Tk 54 million.
"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.
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 3 million units, ICB Asset Management will have 17 million units in the Golden Jubilee fund, much higher than what is legally binding for sponsors, said Ms Khatun, also president of the Bangladesh Merchant Bankers Association of Bangladesh.
The net asset of the MF stood at Tk 848.68 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 May 21.
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 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 in the stock market while 31 of them trade at far below the face value of Tk 10 each unit.

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