Portfolio values of listed mutual funds (MFs) declined up to 13 per cent at current market price in last one month following price fall witnessed by listed securities.
DSEX, the broad index of Dhaka Stock Exchange (DSE), declined 16 per cent or 758.18 points between February 20 to March 19, 2019 and net asset value (NAV) of listed MFs declined up to 13 per cent during the period.
As per existing rules, the MFs are required to invest at least 60 per cent of their funds in the securities listed on the stock exchanges.
"The portfolio values of the MFs mainly depend on the market movement due to mandatory requirement of injecting funds in listed securities," said Shahidul Islam, chief executive officer at VIPB Asset Management.
He said they have injected up to 90 per cent of their funds in the listed securities and many other asset managers also invested above 60 per cent of their funds in listed securities.
"That's why, the portfolio values of most of the listed MFs declined following recent price fall witnessed by majority number of listed securities," Mr. Islam said.
On the closing operation as of March 19, 2020, AB Bank 1st Mutual fund reported its NAV of Tk. 9.03 per unit on the basis of current market price.
The fund's NAV was Tk 10.24 as per unit on the closing operation as of February 20 last.
As per a result, the fund's NAV declined 12 per cent or Tk 1.21 during the timeframe between February 20 to March 19 last.
The NAV of EBL NRB Mutual Fund declined 10.26 per cent or Tk 1.04 to close at Tk 9.09 per unit on March 19 from the value reported on February 20.
The NAV of PHP First Mutual Fund declined 10 per cent or Tk 1.0 to close at Tk Tk. 9.15 per unit on March 19 from the value observed on February 20 last.
On March 19, the NAV of Popular Life First Mutual Fund stood at Tk 9.26 per unit at current market price after declining 10.18 per cent or Tk 1.05 from the value reported on February 20.
EXIM Bank 1st Mutual Fund reported its NAV of Tk 9.12 per unit at current price on March 19. As a result, the fund's NAV declined 9.16 per cent or Tk 0.92 from the value observed on February 20 last.
During the said timeframe, the NAV per unit of First Bangladesh Fixed Income Fund declined to Tk. 9.14 from Tk. 10.04, First Janata Bank Mutual Fund to Tk 9.28 from Tk 10.19, IFIC Bank 1st Mutual Fund to Tk 8.84 from Tk 9.92, Trust Bank 1st Mutual Fund to Tk 9.33 from Tk 10.21, EBL First Mutual Fund to Tk 9.18 from Tk 10.08, SEML FBLSL Growth Fund to Tk 10.25 from Tk 10.48 and SEML IBBL Shariah Fund to Tk 8.88 from Tk 9.70.
Of other listed MFs, the NAV per unit of SEML Lecture Equity Management Fund came down to Tk 8.90 from Tk 9.71, Grameen One : Scheme Two to Tk 15.36 from Tk 17.15, CAPM IBBL Islamic Mutual Fund to Tk 8.91 from Tk 9.80, CAPM BDBL Mutual Fund 01 to Tk 8.37 from Tk 9.31 and ICB AMCL First Agrani Bank Mutual Fund to Tk 7.25 from Tk 8.66 at current market price during the said time frame.
Presently, there are 37 closed-end MFs grabbing around 2.0 per cent of the total market capitalisation of the premier bourse DSE.
Of the listed MFs, only two funds are being traded above face value of Tk 10 each.
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