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ICB Asset Management Company has declared dividends against nine open-ended mutual funds for 2024, despite the market being bearish throughout the year while many close-ended funds failed to declare any dividend for the year.
Investors, whose names appeared in the registers of these funds as of December last year, will be entitled to the dividends.
Tension surrounding national polls in 2024 impacted the market negatively. Raging inflation, high interest rates, and the July-August uprising also exerted negative influence on stocks.
As most of the stocks fell, most of the mutual funds lost income for their main source of income is the equity market. Hence, the funds will pay less in return on investments for 2024 than for the year before.
ICB Asset Management is a subsidiary of the Investment Corporation of Bangladesh (ICB), a state-owned investment bank. The Trustee Committee approved the dividends in a meeting on January 28.
ICB's latest dividends recommended against open-ended funds appear moderate. Close-ended mutual funds in Bangladesh usually offer higher dividends, compared to open-ended funds, but the performance of the latter has been more stable.
Some private asset management companies, such as VIPB Asset Management, and Alliance Capital, have recently declared dividends ranging from 3.0 per cent to 8.0 per cent against funds managed by them.