The Trustee Committee of NLI First Mutual Fund, a closed-end mutual fund, has declared a record 17.50 per cent cash dividend for the year ended on June 30, 2021.
The record date is set on August 29, the Fund said in a filing with the Dhaka Stock Exchange (DSE) on Thursday.
This is the highest dividend declaration of the Mutual Fund since listing with the DSE in 2012. The fund is managed by VIPB Asset Management Company, sponsored by National Life Insurance Company.
The Fund has also reported earnings per unit (EPU) of Tk 3.14, net asset value (NAV) per unit at market price Tk 15.32, NAV per unit at cost of Tk 13.85 and net operating cash flow per unit (NOCFPU) of Tk 2.00 for the year ended on June 2021 as against minus Tk 0.76, Tk 11.22, Tk 12.50 and Tk 0.55 respectively for the same of the previous year.
The fund also informed that EPU of Tk 3.14 includes provision reversal of Tk 1.28. Therefore, a declaration of a 17.50 per cent cash dividend represents a 94.09 per cent payout from the distributable EPU of Tk 1.86.
There will be no price limit on the trading of the units of the Fund today following its corporate declaration.
Each unit of the Fund, which was listed on the DSE in 2012, closed at Tk 18.50 on Tuesday. Its unit prices traded between Tk 9.60 and Tk 18.70 in the last one year.
The Fund disbursed 5.0 per cent cash dividend for the year ended on June 30, 2020. In 2019, it provided a 13 per cent cash dividend.
Its paid-up capital is Tk 503 million and the total number of securities is 50.33 million.
The sponsor-directors own 32.80 per cent stake in the Mutual Fund while the institutional investors own 34.70 per cent and the general public 32.50 per cent as of June 30, 2021, the DSE data shows.
A mutual fund is an investment fund that gathers capital from a number of investors to create a pool of money that is then re-invested into stocks, bonds, and other assets.
Investors are effectively unit holders in the fund in proportion to their investment. Funds that are close-ended must be liquidated within a certain timeframe.
Currently, 37 closed-end mutual funds are listed on the premier bourse.