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On
Supervised By
Nafia Laila
Assistant Professor
Department of Business Administration
Institute of Science and Technology
Submitted By
Shahriar Zaman
Examination Roll: 1172145
Registration No: 1177384
Session: 2010-2011
Major in Finance
Department of Business Administration
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LETTER OF TRANSMITTAL
Sultan Ahmed
Assistant General Manager
Human Resource Management Department
Investment Corporation of Bangladesh.
Dear Sir,
It is a matter of immense pleasure for me to submit my Internship Report on The
Operating System of ICB Unit Fund and for your kind evaluation. I am certain that the
knowledge and experience acquired while conducting the study will help me in many ways
in future.
I have tried my best to represent my ideas and findings as clearly as I could within the time
and resource available. I hope that the idea presented in the report will provide a clear
picture about ICB Unit Fund.
I have tried sincerely to comprehend and translate my knowledge in writing this report. I
enjoyed this project work and gladly attend any of you call to clarify on my point, if
necessary.
Sincerely Yours
Shahriar Zaman
Exam Roll: 1172145
Registration No: 1177384
Major in Finance
Department of Business Administration
Institute of Science and Technology
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Students Declaration
I do hereby solemnly declare that the work presented in this Internship report has been
carried out by me and has not been previously submitted to any other University/ College/
Organization for an academic qualification/certificate/diploma or degree.
The work I have presented does not breach any existing copyright and no portion of this
report is copied from any work done earlier for a degree or otherwise.
I further undertake to indemnify the department against any loss or damage arising from
breach of the foregoing obligations.
.....................................
Shahriar Zaman
Examination Roll: 1172145
Registration No: 1177384
Session: 2010-2011
Major in Finance
Department of Business Administration
Institute of Science and Technology
(Affiliated with National University of Bangladesh)
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Supervisors Declaration
This is certified that Internship Report on The Operating System of ICB Unit Fund in
the bona fide record at the report is done by Shahriar Zaman, National University Roll No:
1172145, Registration No: 1177384, Academic session: 2010-11, Major in Finance is a
regular student of BBA program, Department of Business Administration, Institute of
Science and Technology under the National University of Bangladesh. He has completed an
internship program on The Operating System of ICB Unit Fund under my supervision
which is fulfillment of partial requirement of obtaining BBA degree.
____________________
Nafia Laila
Assistant Professor
Department of Business Administration
Institute of Science and Technology
(Affiliated with National University of Bangladesh)
Acknowledgement
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At the beginning I would like to express my deepest gratitude to my Almighty Allah for give
me the strength and the composure to complete the internship report. Words actually will
never be enough to express how grateful I am, but never the less I shall try my level best to
express my gratefulness towards some people.
I would like to thank my academic supervisor Nafia Laila, Assistant Professor, IST for her
motivation, inspiration, kind direction, valuable suggestions & advices during my internship
period and to prepare this report.
My thanks and gratitude to the authority of Investment Corporation of Bangladesh allows
me to complete my Internship program at their institution. I would like to thank Mr. Sultan
Ahmed, Assistant General Manager, Human Resource Management Department, ICB for his
support, instruction, guidance and co-operation to do my internship successfully. I would
like to give my special thanks to Ms. Nuray Tasmin, Senior Officer; Mr. Torab Ahmed,
Senior Principal Officer; Joynal Hossain, Staff who gave special attention to me right from
the very beginning of my stay at ICB.
Although I face some difficulties while preparing this report but I enjoyed each and every
moment of working in ICB as an internee student. I express my sincere heartiest gratitude to
all the AGM, SPO, PO, SO and Staff of ICB Head Office, who helped directly and indirectly
in different capacities to conduct and complete the study.
I am grateful to my beloved parents, well wishers for their inspiration that lead me to go
ahead. Finally I like to thank all the persons who have directly or indirectly contributed in
preparing this report.
Executive Summary
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Investment Corporation of Bangladesh (ICB) was established in 1976 with the objectives of
accelerating industrialization and economic development of the country through
development of capital market by mobilizing savings and encouraging and improving the
investment climate in the country with particular emphasis placed on broadening the base
and scope of investments as well as attract investors. During 39 years of operation, ICB has
come forward as a responsible and trustworthy public sector institution. The report deals
with the product of ICB named ICB Unit Fund.
The establishment of ICB was challenging and excellent decision taken by the government,
which accelerates the pace of industrialization. On the other hand, develop well organized
and active capital market, primarily security market.
ICB has hold three subsidiary companies as on July 1, 2002. ICB has adopted this new line
of business policy for providing better management, better and quick customer services.
The objective of the study is to gather knowledge that how ICB floats and operating system
of ICB Unit Fund. The business of the ICB Unit Fund is to mobilize savings from investors
by way selling units and investing the funds in securities from the primary and secondary
markets to ensure maximum return for unit holders. It is invested in securities and money
market securities as a single account.
Acronyms
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Table of Contents
Sl. No.
Particulars
Page No.
Letter of Transmittal
Students Declaration
II
Supervisors Declaration
III
Acknowledgement
IV
Executive Summary
Acronyms
VI
Chapter One
Introduction
1.1
1.2
1.3
1.4
Methodology
1.5
Chapter Two
Overview of ICB
2.1
2.2
ICB at a glance
2.3
2.4
2.5
2.6
2.7
Management of ICB
2.8
2.9
2.10
10
2.11
11
2.12
12
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2.13
Branches of ICB
12
2.14
12
2.15
Subsidiaries of ICB
15
Charter Three
ICB Unit Fund
3.1
18
3.2
18
3.3
18
3.4
19
3.5
19
3.6
19
3.7
20
3.8
20
3.9
20
3.10
21
Chapter Four
Operating System of ICB Unit Fund
4.1
22
4.2
22
4.3
23
4.4
Outstanding Units
24
4.5
Unit Price
24
4.6
24
4.7
25
4.8
25
4.9
25
4.10
Dividend Declaration
25
4.11
Net Investment
26
4.12
27
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Chapter Five
Analytical Review of ICB Unit Fund
5.1
29
5.1.1
Strength
29
5.1.2
Weakness
30
5.1.3
Opportunity
30
5.1.4
Threat
31
5.2
31
5.2.1
31
5.2.2
32
5.2.3
33
5.2.4
35
5.2.5
35
5.2.6
Return On Investment
37
Chapter Six
Findings, Recommendations and Conclusion
6.1
Findings
39
6.2
Recommendations
40
6.3
Conclusion
41
Bibliography
10 | P a g e
Chapter One
Introduction
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comprehensive report on the Unit Fund of ICB. Some other limitations, I have faced
are as follows:
ICB doesnt have own building so ICB has to maintain its department in
different buildings
Secrecy of the ICB Official's
Unavailability of relevant papers and documents
Insufficiency of necessary information
Employees of the ICB Head Office, Dhaka particularly those who deal with
Unit Fund as a few numbers and as a result they could not spend much time as
required
Internship program pattern was theoretical, so I could not gather practical
knowledge of everyday activities.
15 | P a g e
Chapter Two
Overview of ICB
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Name
Date of
October 1, 1976.
Incorporation:
Nature:
Related Law:
Authorized capital:
Paid Up Capital:
Tk. 10
Status:
Subsidiaries:
2015
2014
Increase/Decrease (%)
Paid-up Capital
632.81
421.88
49.99%
Reserves
1888.88
2035.09
-7.18%
Retained Profit
491.16
625.95
-21.53%
Total
3012.85
3082.92
-2.27%
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16.3%
21.0%
Paid-Up capital
Reserve
Retained Profit
62.7%
Listing Year
1977
Market Category
Electronic Share
Yes
Face Value
10Tk
Current EPS
7.10Tk
Market Price
125.60Tk
Table 2.3: Share details
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Sl.
no.
Shareholders
No.
of No. of Shares
shareholders
1.
Government
of
Peoples
Republic
Bangladesh
2.
Development
Institutions
Percentage of
shareholding
the 1
of
170859380
27.00
Financial 2
162196110
25.63
3.
143819220
22.73
4.
State owned
corporations
insurance 2
78187860
12.36
5.
Denationalized
Private 2
Commercial Banks
57586290
9.10
6.
Private
Banks
462303
0.07
7.
Mutual Funds
11
6226843
0.98
8.
Other Institutions
243
2700686
0.43
9.
General Public
4359
10773808
1.70
Total
4629
632812500
100.00
Commercial 6
Result
Total Income
Tk. 61.13
Shareholders Equity
Total Asset
Dividend Payout
Tk. 221.48
35% (proposed)
Table 2.5: Financial performance of ICB
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find top-class skills and in-depth knowledge of market trends from our specialists altogether a gratifying experience.
2.14.11 Issuing Bank Guarantee
ICB has introduced the Bank Guarantee scheme in 2002-03. ICB provides (i) Bid
bond guarantee for enabling the business people to participate in any tender or
bidding; (ii) Performance bond guarantee for helping the business community to
continue their business smoothly by fulfilling their obligations promised by them to
their clients; (iii) Customs guarantee for solving different disagreements between the
customs authority and the business classes at the initial stage. The limit of guarantee
is issued against at least 20.00 per cent cash and 80.00 per cent easily en-cashable
securities or against 100.00 per cent cash margin.
2.14.12 Corporate Financial Advice
ICB and its subsidiary company ICB Capital management Limited provide
professional & financial advices on corporate restructuring & reengineering to
companies of Govt. enterprise those who are intently to offload shares in the Capital
market.
expertise and experience in the field of business, finance and investment. The
Managing Director of ICB is the Chairman of the Board. The company has excellent
working environment being equipped with logistics and computer facilities.
2.15.2 ICB Asset Management Company Ltd. (IAMCL)
ICB Asset Management Company Ltd. a subsidiary of Investment Corporation of
Bangladesh (ICB) commenced its journey on 5th December, 2000 with the objective
of professionally managing investment funds. The Company offers different types of
investment schemes where savings are pooled for investment in the capital market.
These schemes are designed to hand out best possible benefits to the investors at the
lowest possible risk. Investment in the securities market, for that matter any
investment, carries risk. But there are many techniques to reduce such risk. The
Company is managed by a group of experts who have the necessary skills, knowledge
and aptitude not only to handle risk but also to ensure optimum return taking into
consideration the environment prevailing in the market. ICB Asset Management
Company Ltd., are in a unique position to handle risk-return profile of an investment
efficiently and prudently. It is now managing fifteen funds - ten close-ends Mutual
Fund and five open-end Mutual Funds known as Unit Fund. Some more new funds
are in the offing. The company is engaged in investment management; more
specifically floating and managing both open-end and closed end mutual funds. The
company is dedicated towards development of mutual fund industry as well as the
capital market of Bangladesh.
2.15.3 ICB Securities Trading Company Ltd. (ISTCL)
ICB Securities Trading Company Limited (ISTCL) was formed as a subsidiary
company of Investment Corporation of Bangladesh (ICB) in the year 2000 to perform
stock brokerage functions, as part of the restructuring program of ICB under the
Capital Market Development Program (CMDP) initiated by the Government of
Bangladesh (GOB) and the Asian Development Bank (ADB). The Company is being
operated pursuant to its own Memorandum and Articles of Association, BSEC's rules
and regulations and other applicable laws. It has independent Board of Directors and
separate management. The Company emerged as a public sector stock broking
company just after the introduction of Automated Trading System in the country. The
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Transaction Department of ICB turned into ISTCL adopting electronic trading system
and upgraded technologies in delivering services. The Company started brokerage
activities in Dhaka Stock Exchange Limited (DSE) and Chittagong Stock Exchange
Limited (CSE) after having licenses from Bangladesh Securities and Exchange
Commission (BSEC) on 13 August 2002 and 07 February 2004 respectively. The
Company started its Stock Dealer function from 15 February 2010. The Company
offers stock brokerage services for its diverse clients through the extended network of
head office and 07 (seven) branch offices in major important cities of the country.
These services are made available by a highly dedicated workforce of 118 employees
through 58 trading terminals, one of the largest networks in Bangladesh. ISTCL has
passed 13 years of its voyage in providing full-fledged standard brokerage services
and thus it has become the country's leading stock brokerage service provider and
gained trust and reliability of both the individual and institutional investors.
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Chapter Three
30 | P a g e
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called the First British Fixed Trust held the shares of 24 leading companies in a
fixed portfolio that was not changed for the fixed lifespan of 20 years. The trust was
re-launched as the M&G General Trust and later renamed as the Blue Chip Fund. By
1939 there were around 100 trusts in the UK, managing funds in the region of 80
million.
3.4 Pricing System of Unit Fund
Unit funds are priced per unit on a forwarding pricing basis. This means that when a
person buy or sell units he or she do so at the closing price of that day. Price changes
daily and is determined by the net asset value (NAV) of the portfolios underlying
investments.
3.4.1 Volatility
Volatility refers that price of a unit fund fluctuates over a certain period therefore, its
risk. Funds with a higher volatility usually offer higher returns than low volatility
fund. Returns may fluctuate over short time periods and investors need to know what
their time horizon is when choosing a fund.
3.5 Inception of ICB Unit Fund
With the approval of the Govt. of Bangladesh, ICB Unit Fund was formed in April,
1981 by the Investment Corporation of Bangladesh under section 21 (2) of the
Investment Corporation of Bangladesh Ordinance, 1976 and ICB Unit Regulations,
1981.
ICB Unit fund is an open ended Mutual Fund. It provides an opportunity to the unit
holders to invest their funds in a well managed and diversified portfolio with a high
degree of security of capital and reasonable yearly returns.
3.6 Objective of ICB Unit Fund
The main objective of ICB Unit Fund is to mobilize savings through sale of its units
to small investors and invest these funds in marketable securities. This scheme
provides a potential source of equity and debt to industrial and commercial concerns
and thus contributes to the industrial development of the country.
32 | P a g e
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Chapter Four
Operating System of ICB Unit Fund
35 | P a g e
127.69
120
112.15
101.57
100
80
60
40
20
85.56
79.99
68.63
59.28
55.48
52.36
38.42
13.94
13.15
2010-11
2011-12
20.71
16.01
15.54
2013-14
2014-15
0
Gross Issue/CIP
2012-13
Repurchase
Net Issue
Figure 4.1: Gross issue (CIP), repurchase and net issue of units of ICB Unit
Fund
36 | P a g e
Name of Institution
No
1.
Investment
Corporation
of 5188458
81.27
Bangladesh
2.
439946
6.89
3.
263285
4.12
4.
163788
2.57
5.
United
Bank 156242
2.45
Commercial
Limited
6.
51196
0.80
7.
38949
0.61
8.
23482
0.37
9.
18305
0.29
10.
16002
0.25
11.
14868
0.23
12.
9480
0.15
13.
256
0.004
6384256
100.00
Table 4.1: Position of Units issued under CIP through ICB and other institutions
37 | P a g e
From the above Table 4.1, It is observed that in 2014-15 under CIP the highest 81.27
percent units were issued through the offices of ICB followed by 6.89 per cent and
4.12 per cent through IFIC Bank Ltd. and Sonali Bank Ltd. respectively.
4.4 Outstanding Units
The total number and value of units outstanding as on 30 June, 2015 was 62771858
units and Tk. 838.45 crore respectively. A comparative position of outstanding units
of ICB unit Fund for the periods from 2010-11 to 2014-15 is given below:
6.50
6.00
5.50
5.00
4.50
4.00
3.50
2010-11
2011-12
2012-13
2013-14
2014-15
dividend and interest income of Tk. 109.69 crore which is 6.37% higher than the
previous year. The total dividend and interest income during 2013-14 was Tk. 103.12
crore.
4.7 Capital Gain on Sale of Investments
During 2014-15 the Fund has earned an amount of Tk. 299.75 crore as capital gains
by selling securities of 25 companies compared to Tk. 272.98 crore earned in 2013-14
by selling securities of 54 companies.
4.8 Interest of Bank Deposits and Premium Income
In 2014-15 the Fund has earned Tk. 15.72 crore as interest on bank deposits which
was Tk. 9.17 crore in 2013-14.
In 2014-15, the Fund has earned Tk. 2.55 crore as premium on total issued Units as
against Tk. 2.26 crore in 2013-14.
4.9 Income, Expenditure and Distributable income
During the year under review, the Fund has earned a total income of Tk. 429.19 crore
by way of dividend, interest on debenture securities, capital gain, interest on bank
deposits, premium on issue of units and others. After deducting the total expenses of
Tk. 67.32 crore on account of management fee, custodian fee, commission and
brokerage, audit fee, postage, Bank charges, provision against investments and others
the fund had a net income of Tk. 361.87 crore. Together with the previous year's
undistributed income of Tk. 369.70 crore, the Fund had a net distributable income of
Tk. 731.58 crore. The distributable income per certificate stood at Tk. 116.55. The
Fund had 62771858 outstanding Units as on 30 June, 2015.
4.10 Dividend Declaration
266.78 crore for 2014-15 in the meeting held on 30 July, 2015. The unit holders
whose names The Board of Directors of ICB declared dividend at the rate of Tk.
42.50 per unit payout of Tk. appeared in the register on 30 June, 2015 were entitled to
this dividend. The rest amount of Tk. 464.80 crore would be retained in the fund's
39 | P a g e
account. The following table shows dividend performance of ICB Unit Fund for the
periods from 2005-06 to 2014-15:
Financial Year
2005-06
12.00
2006-07
13.00
2007-08
20.00
2008-09
22.00
2009-10
26.00
2010-11
30.00
2011-12
32.00
2012-13
36.50
2013-14
40.00
2014-15
42.50
Table 4.2: Dividend per unit of ICB Unit Fund
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Occupation / Institution
No.
of
Unit Percentage
Holders
Public
1.
and
private
sector 16872
57.48
employees
2.
Retired persons
1779
6.06
3.
1930
6.57
4.
842
2.87
5.
Defense personnel
1302
4.43
6.
House-wives
1470
5.01
7.
2064
7.03
8.
1810
6.16
9.
36
0.12
10.
Others
1255
4.27
Total
29360
100.00
41 | P a g e
4.27%
0.12%
6.16%
7.03%
5.01%
4.43%
House-wives
2.87%
57.48%
6.57%
6.06%
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Chapter Five
Analytical Review of ICB Unit Fund
43 | P a g e
Strength
Weakness
SWOT
Opportunity
Threat
5.1.1 Strength
Strength is the internal factor of SWOT analysis. ICB Unit Fund Department has
some strength which are must more attractive for every investor. As a result investors
are investing their money in the ICB Unit Fund. The ICB Unit Fund strength is given
below:
ICB Unit Fund more popular for investors, because every year authority
declared handsome dividend for unit holders.
44 | P a g e
Higher job satisfaction exists among the employer and employee. Not engaged
in unfair business practice. As a result investors are investing money in the
ICB Unit more safely
Good co-operation among the officers and executives in the ICB Unit Fund
Department.
Risk less investment because ICB Unit Fund authority every year declared
handsome dividend.
ICB Unit Fund investment processes comparatively easy another institution
Chittagong Stock Exchange.
Loan facilities are available.
Good consumer relationship.
Cumulative Investment Plan (CIP) attractive for every category investors.
5.1.2 Weakness
Weakness is the internal factor of SWOT analysis. In the world everything is not good
enough. So, everything has weakness. In that's reasons ICB Unit Fund have some
weakness which weakness are not favorable for investors. Weaknesses are as follows:
Loan facilities are not sufficient for investors.
Most of officers are not business graduate and not highly qualified.
There is information gap between head office Unit Fund Department and
Chittagong Branch office.
Absence of sufficient computer facilities.
Reluctant to Advertisement campaign.
5.1.3 Opportunity
Opportunity is the external factor of SWOT analysis. Opportunities of ICB Unit Fund
are given below:
Can increase loan facilities.
ICB Unit Fund more reliable to local public (investors).
Govt. has taken steps to develop capital market.
45 | P a g e
5.1.4 Threat
Threat is the external factor of SWOT analysis. There are some threats of ICB Unit
Fund. They are:
There are many competitors in the market.
Different classic service of competitors.
Young energetic, dynamic, talent and smart work force of competitors.
To morons business word is for knowledge organization.
Fund constant in financing for modem technologies.
Shortage of updated expertise.
5.2 Quantitative Analysis of ICB Unit Fund
Some Financial ratio analysis has been done in quantitative analysis of ICB unit fund.
5.2.1 Market Price Per Unit
Market price per unit refers to the price in which a unit can be purchased. In case of
ICB Unit Fund, there are mainly two types of prices. First one is issue price and other
one is repurchase price. In following figure, issue price is given because mass people
buy unit at this price.
250
200
150
204
159
170
180
184
50
0
2010-11
2011-12
2012-13
2013-14
2014-15
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The above figure shows the market price per unit of ICB Unit Fund for the periods
from 2010-11 to 2014-15. The figure represents that the market price of ICB Unit
Fund is increasing year by year.
5.2.2 Earnings Per Unit
Earning per unit is the amount of earning that is earned into each unit of ICB Unit
Fund. The calculation of earnings per unit for the periods from 2010-11 to 2014-15 is
given below:
Financial
No. of Units
Earnings Per
Outstanding (2)
Unit (3)
(Tk. in Cr.)
(Units in Cr.)
2010-11
180.59
4.54492
39.73
2011-12
196.37
4.87698
40.26
2012-13
269.99
5.22429
51.68
2013-14
304.60
5.50880
55.29
2014-15
361.87
6.27719
57.65
Year
47 | P a g e
70
60
51.68
50
40
55.29
57.65
40.26
39.73
30
20
10
0
2010-11
2011-12
2012-13
2013-14
2014-15
Financial
Market Price Per Unit Earnings Per Unit P/E Ratio (3)
(1)
(2)
Year
2010-11
159
39.73
4.00
2011-12
170
40.26
4.22
2012-13
180
51.68
3.48
2013-14
184
55.29
3.33
2014-15
204
57.65
3.54
4.5
4
4.22
3.5
3.48
3.54
3.33
3
2.5
2
P/E Ratio
1.5
1
0.5
0
2010-11
2011-12
2012-13
2013-14
2014-15
49 | P a g e
45
40
40
36.5
35
30
42.5
30
32
25
Dividend Per Unit
20
15
10
5
0
2010-11
2011-12
2012-13
2013-14
2014-15
50 | P a g e
Financial Dividend
Market
Dividend
Earnings
Dividend
Year
Per
Price Per
Yield (3)
Per
Payout (5)
Unit (1)
Unit (2)
(1)(2) = (3)
Unit (4)
(1)(4) = (5)
2010-11
30
159
18.87%
39.73
75.51%
2011-12
32
170
18.82%
40.26
79.48%
2012-13
36.50
180
20.28%
51.68
70.63%
2013-14
40
184
21.74%
55.29
72.34%
2014-15
42.50
204
20.83%
57.65
73.72%
Table 5.3: Dividend yield & Dividend payout ratio of ICB Unit Fund
Dividend yield and Dividend payout ratio of ICB Unit Fund is given in the following
figure:
100.00%
90.00%
80.00%
70.00%
75.51%
79.48%
70.63%
72.34%
73.72%
60.00%
Dividend
Yield
50.00%
40.00%
Dividend
Payout
30.00%
20.00%
18.87%
18.80%
20.28%
21.74%
20.83%
10.00%
0.00%
2010-11
2011-12
2012-13
2013-14
2014-15
Figure 5.5: Dividend yield and Dividend payout ratio of ICB Unit Fund
51 | P a g e
From the above figure it is noticed that Dividend payout ratio is down trend which
means company use much of its earning to reinvest in the company. On the other
Dividend yield is little bit up-warding which means company is attempting to attract
the investors for investing in ICB Unit Fund.
5.2.6 Return On Investment
ROI of ICB Unit Fund for the periods from 2010-11 to 2014-15 is given below:
Financial Year
ROI (3)
(1) (2) = (3)
2010-11
180.59
1190.13
15.17%
2011-12
196.37
1277.18
15.37%
2012-13
269.99
1532.21
17.62%
2013-14
304.60
1667.55
18.27%
2014-15
361.87
1863.46
19.42%
25.00%
20.00%
17.62%
15.00%
15.17%
18.27%
19.42%
15.37%
ROI
10.00%
5.00%
0.00%
201-11
2011-12
2012-13
2013-14
2014-15
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Chapter Six
Findings, Recommendations and
Conclusion
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6.1 Findings
ICB has established to develop capital market, to mobilize savings and to broaden the
base of investment. ICB operate the capital market with skilled and experience
financial experts. The credit of its good performance and reputation solely goes to its
professionals. All of its security trading and investment decision is taken by
professional management team.
ICB Unit Fund has gain investor confidence mainly medium savers. Public and
private sector employees accounted for 57.48% of total unit holders who are mainly
of small and medium size income group.
Findings which relate to different department of ICB and ICB Unit Fund are given
below:
ICB promote and establish subsidiary for business development and broaden
the base of investment.
ICB Unit Fund gives lucrative dividend.
Earning per unit is good with current situation.
ROI is a growing trend of ICB Unit Fund which gains reliability of investors.
Withdraw of any funds or securities, are very lengthy and complicated
process.
In case of buying and selling shares, which are ordered by investors, takes
much time to execute by ICB. So investors' are not getting their calculated
profit.
Office layout and interior decoration of ICB are not in good position.
Because of less employees and lack of proper training facilities, investors get
poor customer service.
Most of the people of Bangladesh are not very familiar with ICB's activity.
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6.2 Recommendations
Although ICB is one of the top performing company, I have some suggestion for ICB
to improve its performance be more efficient,
ICB has skilled and experiences fund manager but they perform only on
security trading. The trade monitors and stock fraud monitoring tram of ICB is
lack of human resource. ICB should enroll more human resource on those
fields.
ICB was should process a team of technical personnel to carry out the
appraisal ask. At least the Corporation should appoint some expertise that has
the ability to evaluate the supplied appraisal report which are now lacking.
The Corporation should have a training institution.
The Central Depository System (CDS) is essential in ICB.
IT sector of ICB needs Internal Transfer of Share (ITS).
Arrangement should be made to deliver the Unit Certificate to the investors
within the reasonable time limit.
In case of portfolio selection, the ICB Unit Fund management should include
those companiess share which performance is better.
Unit Fund management should diversify its cash in those sector from which
high return is possible.
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6.3 Conclusion
To conclude this report it can be said that it was a great opportunity for me to study
the operational activities of the investment bank as well as capital market of the
country. The Investment Corporation of Bangladesh (ICB) is virtually the only
investment bank in Bangladesh. In a broader sense ICB is both Investment Bank and
Development Finance Institution (DFI). ICB plays a vital role to encourage and
broaden the base of investments and thereby to help develop the capital market in
Bangladesh.
My main focus on this report is operating system of ICB Unit Fund. From the analysis
it found that the Unit Funds position is good. There is low risk involvement. The main
reason behind this, there was no binding in size. ICB Unit Fund attracts investor by
well management. ICB Unit Fund also declared a handsome dividend.
The study is the first time for me to get the opportunity for conducting such an
elaborate study in this field. Hence, I do not know how far I am successful in writing
this report. But it is true I have tried sincerely to discharge my duties with zeal and
enthusiasm and to the best of satisfaction. However, I remain apologize for any error
or omission which may happen unwillingly.
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Bibliography
1. Investment Corporation of Bangladesh (ICB) 2014-2015. Annual Report,
Dhaka ICB.
2. Investment Corporation of Bangladesh (ICB) 2013-14. Annual Report,
Dhaka ICB.
3. Investment Corporation of Bangladesh (ICB) 2014-15. Annual Report of
Unit Fund, Dhaka ICB.
4. Investment Corporation of Bangladesh (ICB) 2013-14. Annual Report of
Unit Fund, Dhaka ICB.
5. Pandey, I. M. (1998), Financial Management.
6. Bernstein, L. A. (1983), Financial statement analysis: Theory, application,
and interpretation.
7. http://www.icb.org.bd/zindex.php
8. http://www.investopedia.com/university/ratios/
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