Most of the listed mutual funds declared lower dividends for the year ended on June 30, 2018 compared with the rates they had given in the previous year, denting the confidence of unit-holders of the mutual funds.
Of the 29 listed mutual funds which maintain the July-June accounting year, just six declared higher dividends, 16 announced lower dividends, six mutual funds declared the same rates as they had given in the previous year and one mutual fund is yet to announce dividend.
The two newly listed mutual funds that maintain the same accounting year are: CAPM IBBL Mutual Fund and ICB Agrani Mutual Fund. CAPM IBBL Mutual Fund, which was listed with the bourses in January this year, declared no dividend and ICB Agrani Mutual Fund, which was listed in October last year, announced 5.5 per cent cash dividend. Four other listed mutual funds maintain different accounting year.
Investors have remained depressed about the performance of the mutual funds since the market crash in 2010-2011 as most of the mutual funds failed to perform up to the investors’ expectation, stockbrokers said.
Due to the disappointing performance of the mutual funds, the units of 30 mutual funds have been trading far below their issue prices, reflecting investors’ lack of interest for the MFs, they said.
Besides, volatility at the market from the very beginning of the year also affected the profit making ability of the funds, they said.
Of the mutual funds that declared dividends, only eight of them announced dividends at the rate of 10 per cent or above, while 15 mutual funds had distributed dividends at the rate of 10 per cent and above in the previous year.
Mutual funds under RACE Asset Management were the worst performers as all the 10 mutual funds declared lower dividends compared with that in the previous year. On top of that, the units of all the 10 mutual funds were trading far below their issue prices.
The mutual funds which declared lower dividends are: First Janata Bank Mutual Fund, Asian Tiger Sandhani Life Growth Fund, Southeast Bank 1st Mutual Fund, EBL First Mutual Fund, Grameen One: Scheme Two, AB Bank 1st Mutual Fund, PHP First Mutual Fund, Popular Life First Mutual Fund, ICB AMCL Sonali Bank Limited 1st Mutual Fund, First Bangladesh Fixed Income Fund, IFIC Bank 1st Mutual Fund, ICB Employees Provident
MF 1: Scheme 1, EBL NRB Mutual Fund, EXIM Bank 1st Mutual Fund, Trust Bank 1st Mutual Fund and NLI First Mutual Fund.
The mutual funds which announced higher dividends are: ‘Reliance One’ The 1st Scheme of Reliance Insurance Mutual Fund, AIBL 1st Islamic Mutual Fund, DBH First Mutual Fund, Green Delta Mutual Fund, CAPM BDBL Mutual Fund 01 and SEML IBBL Shariah Fund.
On the other hand, the mutual funds that announced dividends at the same rates they had declared in the previous year are: MBL 1st Mutual Fund, IFIL Islamic Mutual Fund-1, Prime Bank 1st ICB AMCL Mutual Fund, ICB AMCL Third NRB Mutual Fund, ICB AMCL Second Mutual Fund, and Phoenix Finance 1st Mutual Fund.
Of the 30 mutual funds that declared dividends, NLI First Mutual Fund announced the highest rate of dividend (14 per cent cash) for its investors although the rate was lower than that of the previous year (15 per cent).
Southeast Bank 1st Mutual Fund announced the second highest rate (13 per cent cash), and Asian Tiger Sandhani Life Growth Fund (12 per cent cash) and Grameen One: Scheme Two (12 per cent cash) declared the third highest rate of dividend.