VIPB Fixed Income Fund posts above 26pc return for 1st year

VIPB Fixed Income Fund has generated a 26.2 per cent return within one year of the launch of its operation.

Officials of the asset manager, VIPB Asset Management Company, said the larger portion of the return came from Treasury bonds.

The fund distributed a 5.0 per cent cash dividend for the period from September last year to June this year. After the dividend distribution, the net asset value (NAV) stood at Tk 12.12 per unit, 21.2 per cent up from the face value of Tk 10 per unit.

Hence, an investor who purchased a unit at a price of Tk 10 will be able to surrender it at Tk 12.12.

Around 60 per cent of the fund was invested in Treasury bonds, 32 per cent in undervalued blue-chip stocks, and the remaining 8 per cent in corporate bonds.

After the fund's launch, yields of Treasury bonds were 12.5-13 per cent. Recently, the yields of such fixed-income securities declined to around 10.50 per cent.

As a result, the fund's return from the fixed-income securities rose to 22 per cent as the market value of such bonds went up when yields fell.

"This return played a pivotal role in the fund's impressive performance reported for the last one year," said Md Shahidul Islam, chief executive officer of VIPB Asset Management Company.

VIPB Fixed Income Fund also generated good returns from blue-chip stocks as they experienced growth after the fall of the past government.

The CEO said the fund's achievement highlighted the asset manager's disciplined investment strategy and steadfast focus on preserving and growing investor capital.

"The company remains deeply committed to its utmost fiduciary responsibility," Mr Islam added.

The initial size of the Fixed Income Fund was Tk 100 million, which surged to around Tk 220 million, according to the asset manager.

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