(082-11-389)

A closed-end investment company operates like any other public firm. Its stock trades on the regular secondary market, and the market price of its shares is determined by supply and demand. The typical closed-end investment company offers no further shares and does not repurchase the shares on demand. Thus, if you want to buy or sell shares in a closed-end fund, you must make transactions in the public secondary market. The shares of many of these funds are listed on the NYSE. No new investment dollars are available for the investment company unless it makes another public sale of securities. Similarly, no funds can be withdrawn unless the investment company decides to repurchase its stock, which is quite unusual. The company is engaged in investment management; more specifically floating and managing closed end mutual funds. The company is dedicated towards development of mutual fund industry as well as the capital market of Bangladesh. Open-end investment companies, or mutual funds, continue to sell and repurchase shares after their initial public offerings. They stand ready to sell additional shares of the fund at the NAV, with or without sales charge, or to buy back (redeem) shares of the fund at the NAV, with or without redemption fees. Capital Structure (Taka in Lacs) Particulars Authorized Capital Paid up Capital Reserve Retained Profit Total June 30, 2010 10000.00 1200.00 1040.00 1749.24 3989.24 June 30, 2009 10000.00 750.00 1040.00 872.53 2662.53

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MUTUAL FUNDS ICB Asset Management Company Ltd. has so far floated eleven closed-end mutual funds and two openend Mutual Funds through which the small and medium savers get opportunities to invest their savings in a balanced and relatively low risk portfolio. The aggregate size of these funds is around Tk. 815.00 core.

Conventional Mutual Funds: Date of Launching Size of the Nature of the Fund (TK. Fund in crore) Close-end Close-end Close-end 10.00 20.00 50.00

Sl.No.

Name of the Funds

1. 2. 3.

ICB AMCL First Mutual Fund Prime Finance First Mutual Fund ICB AMCL Second Mutual Fund ICB Employees Provident Mutual Fund One: Scheme One Prime Bank 1st Mutual Fund Phoenix Finance 1st Mutual Fund ICB AMCl Unit Fund

16/06/2003 04/01/2009 09/08/2009

4.

22/11/2009

Close-end

75.00

5. 6. 7.

06/12/2009 07/03/2010 21/06/2003

Close-end Close-end Open-end

100.00 60.00 150.00

Non-Conventional Mutual Funds: Date of Launching Nature of the Fund Size of the Fund (TK. in crore) 10.00 10.00 100.00 100.00 30.00 100.00

Sl.No.

Name of the Funds

1. 2. 3. 4. 5. 6.

ICB AMCl Islamic Mutual Fund ICB AMCL First NRB Mutual Fund ICB AMCL Second NRB Mutual Fund ICB AMCL Third NRB Mutual Fund

12/10/2004 28/01/2007 15/05/2008 28/03/2010

Close-end Close-end Close-end Close-end Open-end Close-end

ICB AMCL Pension Holders' Unit Fund 18/10/2004 IFIL Islamic Mutual Fund-1 26/09/2010

These funds received spectacular response from the investors. The business of the Islamic mutual funds should be inconsistence with the Sharia Law. With a view to tapping the savings of Non-Resident Bangladeshis (NRBs) for investment in the country's capital market, ICB Asset Management Company Ltd. lunched ICB AMCL First NRB Mutual Fund, ICB AMCL Second NRB Mutual Fund and ICB AMCL Second NRB Mutual Fund. Investors have shown overwhelming interest in all the mutual funds. ICB AMCL Unit Certificates and ICB AMCL Pension Holders Unit Certificates are sold and repurchased on the counters of ICB AMCL Head Office and the branch offices of ICB. ICB AMCL Pension Holders Unit Certificates are sold exclusively to the retired pension holders. ICB along with some other banks and financial institutions extend loan facility against lien of units. The company plans to launch some other conventional mutual funds named First Agrani Bank Mutual Fund, Sonali Bank Limited 1st Mutual Fund and specialized open-end mutual fund for NRBs named ICB AMCL NRB Unit Fund. Web site: http://www.icbamcl.com.bd

A no-load fund imposes no initial sales charge so it sells shares at their NAV. Some of these funds charge a small redemption fee of about one-half of 1 percent. In The Wall Street Journal, quotes for these no-load funds list bid prices as the NAV with the designation NL (no load) for

the offering price that is, the bid and offer are the same. The number of no-load funds has increased substantially in recent years. The Wall Street Journal lists more than 350 no-load funds, and Barron s lists more than 800. Between the full-load fund and the pure no-load fund, several important variations exist. The first is the low-load fund, which imposes a front-end sales charge when the fund is bought, but it is typically in the 3 percent range rather than 7 to 8 percent. Fund Management Fee: These management fees are a major factor driving the creation of new funds. More assets under management generate more fees, but the costs of management do not increase at the same rate as the managed assets because substantial economies of scale exist in managing financial assets. Once the research staff and management structure have been established, the incremental costs do not rise in line with the assets under management. These management fees are a major factor driving the creation of new funds. More assets under management generate more fees, but the costs of management do not increase at the same rate as the managed assets because substantial economies of scale exist in managing financial assets. Once the research staff and management structure have been established, the incremental costs do not rise in line with the assets under management. (082-11-434)

Common Stock Funds Fund Management Fees

Some funds invest almost solely in common stocks; others invest in preferred stocks, bonds, and so forth. Within common stock funds, wide differences are found in emphasis, including funds that focus on growth companies, small-cap stocks, companies in specific industries (e.g., Chemical Fund, Oceanography Fund), certain classes of industry (e.g., Technology Fund), or even geographic areas (such as the Northeast Fund or international funds). Different common stock funds can suit almost any taste or investment objective. Therefore, you must decide whether you want a fund that invests only in common stock; then you must consider the type of common stock you desire.

Equity Funds Capital Appreciation Funds seek capital appreciation; dividends are not a primary Consideration Aggressive growth funds invest primarily in common stocks of small, growth companies. Growth funds invest primarily in common stocks of well-established companies.

Sector funds invest primarily in companies in related fields. Total Return Funds seek a combination of current income and capital appreciation. Growth and income funds invest primarily in common stocks of established companies with the potential for growth and a consistent record of dividend payments. Income equity funds invest primarily in equity securities of companies with a consistent record of dividend payments. They seek income more than capital appreciation. World Equity Funds invest primarily in stocks of foreign companies. Emerging market funds invest primarily in companies based in developing regions of the world. Global equity funds invest primarily in equity securities traded worldwide, including those of Bangladeshi companies. International equity funds invest primarily in equity securities of companies located outside the Bangladesh. Regional equity funds invest in companies based in a specific part of the world. Taxable Bond Funds Corporate Bond Funds seek current income by investing in high-quality debt securities issued by BD corporations. Corporate bond funds general invest two thirds or more of their portfolios in BD corporate bonds with no explicit restrictions on average maturity. Corporate bond funds intermediate-term invest two-thirds or more of their portfolios in BD corporate bonds with an average maturity of five to 10 years. These funds seek a high level of income with less price volatility than longer-term bond funds. Corporate bond funds short-term invest two-thirds or more of their portfolios in BD corporate bonds with an average maturity of one to five years. These funds seek a high level of income with less price volatility than intermediate-term bond funds. High-Yield Funds invest two-thirds or more of their portfolios in lower-rated BD corporate bonds World Bond Funds invest in debt securities offered by foreign companies and governments. They seek the highest level of current income available worldwide.

Global bond funds general invest in worldwide debt securities with no stated average maturity or an average maturity of five years or more. These funds may invest up to 25 percent of assets in companies located in the Bangladesh. Global bond funds short-term invest in debt securities worldwide with an average maturity of one to five years. These funds may invest up to 25 percent of assets in companies located in the Bangladesh. Other world bond funds, such as international bond and emerging market debt funds, invest in foreign government and corporate debt instruments. Two-thirds of an international bond funds portfolio must be invested outside the Bangladesh. Emerging market debt funds invest primarily in debt from underdeveloped regions of the world. Government Bond Funds invest in BD government bonds of varying maturities. They seek high current income. Government bond funds general invest two-thirds or more of their portfolios in BD government securities of no stated average maturity. Securities utilized by investment managers may change with market conditions. Government bond funds intermediate term invests two-thirds or more of their portfolios in BD government securities with an average maturity of five to 10 years. Securities utilized by investment managers may change with market conditions. Government bond funds short-term invest two-thirds or more of their portfolios in Bangladesh government securities with an average maturity of one to five years. Securities utilized by investment managers may change with market conditions. Mortgage-backed funds invest two-thirds or more of their portfolios in pooled mortgage-backed securities. Strategic Income Funds invest in a combination of Bangladesh fixed-income securities to provide a high level of current income. Tax-Free Bond Funds State Municipal Bond Funds invest primarily in municipal bonds issued by a particular state. These funds seek high after tax income for residents of individual states. State municipal bond funds general invest primarily in single-state municipal bonds with an average maturity of greater than five years or no specific stated maturity. The income from these funds is largely exempt from federal as well as state income tax for residents or the state. State municipal bond funds short-term invest primarily in single-state municipal bonds with an average maturity of one to five years. The income of these funds is largely exempt from federal as well as state income tax for residents of the state.

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National Municipal Bond Funds invest primarily in the bonds of various municipal issuers in the United States. These funds seek high current income free from federal tax. National municipal bond funds general invest primarily in municipal bonds with an average maturity of more than five years or no specific stated maturity. National municipal bond funds short-term invest primarily in municipal bonds with an average maturity of one to five years. Hybrid Funds : Balanced funds diversify outside the stock market by combining common stock with fixedincome securities, including government bonds, corporate bonds, convertible bonds, or preferred stock. The ratio of stocks to fixed-income securities will vary by fund, as stated in each fund s prospectus. Flexible portfolio (or asset allocation) funds seek high total returns by investing in a mix of stocks, bonds, and money-market securities. Bond Funds : Bond funds concentrate on various types of bonds to generate high current income with minimal risk. They are similar to common stock funds; however, their investment policies differ. Some funds concentrate on BD government or high-grade corporate bonds, others hold a mixture of investmentgrade bonds, and some concentrate on high-yield (junk) bonds. Management strategies also can differ, ranging from buy and hold to extensive trading of the portfolio bonds. Money Market : FundsMoney market funds were initiated during 1973 when short-term interest rates were at record levels. These funds attempt to provide current income, safety of principal, and liquidity by investing in diversified portfolios of short-term securities, such as Treasury bills, banker certificates of deposit, bank acceptances, and commercial paper. They typically are no-load funds and impose no penalty for early withdrawal. Also, they generally allow holders to write checks against their account. Breakdown by Fund Characteristics Sales forces would include brokers, such as Merrill Lynch; commission-based financial planners; or dedicated sales forces, such as those of American Express Retirement Services. Almost all mutual funds acquired from these individuals charge sales fees (loads) from which Sales people are compensated. Investors typically purchase shares of directly marketed funds through the mail, telephone, bank wire, or an office of the fund. These direct sales funds usually impose a low sales charge or none at all.

GLOBAL INVESTMENT COMPANIES As discussed throughout this text, serious thought should be given to global diversification of your investment portfolio. Funds that invest in non-Bangladesh. securities are generally called foreign funds. More specific designations include either international funds or global funds. International funds include only non-Bangladesh. stocks from such countries as Germany, Japan, Singapore, and Korea. Global funds contain both Bangladesh. and non- Bangladesh. Securities. Ideally, a global fund should invest in a large number of countries. Both international and global funds fall into familiar categories: money funds, long-term government and corporate bond funds, and equity funds.