Dhaka, Bangladesh (BBN) - Most of the mutual funds listed with the capital market performed better in the third quarter (Q3) of this calendar year amid tightened regulatory supervision and improved market situation.
Out of the 41 mutual funds listed with the capital market, 28 mutual funds have so far declared their quarterly statements for the July-September period of the year.
Of the funds, 19 made increased profits, while profits of nine mutual funds fell during the quarter, according to the reports, published by the DSE.
Experts said that though there were more opportunities to make mutual funds lucrative in terms of disbursing profit to their unit holders, the recent improvement in mutual funds’ performance was very much significant as the sector had been suffering since the market crash in 2010-2011.
They also said that though country’s asset managers were not that expert in managing funds properly, the recent rise in the share prices of the listed companies and tightened monitoring by the capital market regulator on fund management prompted asset managers and trustees to handle funds more effectively.
The key index of Dhaka Stock Exchange, DSEX, in the July-September period rose by almost 600 points to close at 5,074.30 points on September 30 from 4,480.52 points on June 30 this year.
On the other hand, the Bangladesh Securities and Exchange Commission made some tough decisions to increase its supervision over the mutual fund management-related entities.
In line with its effort, the BSEC in recent time formed an investigation committee to look into suspicious bank transactions by an asset management company.
The commission for the first time asked a trustee to explain its effort to monitor the function of the asset management companies to run mutual funds and make them profitable.
AIMS of Bangladesh managing director Yawer Sayeed told New Age, a local newspaper, that rise in share prices might be the main reason for the improved performance of the mutual funds during the Q3.
He also said that an increased number of initial public offering during the period might also help most of the mutual funds to achieve increased profit during the quarter.
Sayeed also said that there were also scopes for the mutual funds to improve their performance by repairing the mutual funds.
Asked, a BSEC senior official told New Age, ‘BSEC’s increased monitoring over the mutual funds might make the asset management companies and trusties to increase their efforts in making the funds profitable.’
Once the asset managers of the mutual funds will give their maximum effort to improve the performance of the mutual funds, it will bring better result for the unit holders, the official said.
The funds which made improved profits during July-September of this year are First Janata Bank Mutual Fund, ICB AMCL Employees Provident Mutual Fund, Prime Bank First ICB AMCL Mutual Fund, IFIL Islamic Mutual Fund-1, EXIM Bank First Mutual Fund, First Bangladesh Fixed Income Fund, AB Bank 1st Mutual Fund, EBL NRB Mutual Fund, PHP First Mutual Fund, IFIC Bank 1st Mutual Fund, Trust Bank 1st Mutual Fund, EBL First Mutual Fund, Southeast Bank 1st Mutual Fund, NLI First Mutual Fund, Green Delta Mutual Fund, DBH First Mutual Fund and NCCBL Mutual Fund-1 and MBL 1st Mutual Fund and AIBL 1st Islamic Mutual Fund.
ICB AMCL Second Mutual Fund, ICB AMCL Second NRB Mutual Fund, ICB AMCL First NRB Mutual Fund, ICB AMCL Islamic Mutual Fund, Phoenix Finance 1st Mutual Fund, ICB AMCL Third NRB Mutual Fund, ICB AMCL Sonali Bank Ltd 1st Mutual Fund, Prime Finance First Mutual Fund and Popular Life First Mutual Fund are the funds which showed profit fall in the quarter.
BBN/SSR/AD-15Nov14-3:42 pm (BST)