Operating system of icb unit fund

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An Internship Report
On
The Operating System of ICB Unit Fund
Submitted To
Sultan Ahmed
Assistant General Manager
Human Resource Management Department
Investment Corporation of Bangladesh
Supervised By
Nafia Laila
Assistant Professor
Department of Business Administration
Institute of Science and Technology
Submitted By
Shahriar Zaman
Examination Roll: 1172145
Registration No: 1177384
Session: 2010-2011
Major in Finance
Date of Submission: 19 April, 2016
INSTITUTE OF SCIENCE AND TECHNOLOGY
(Affiliated with National University of Bangladesh)

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LETTER OF TRANSMITTAL
Date: 19 April, 2016
Sultan Ahmed
Assistant General Manager
Human Resource Management Department
Investment Corporation of Bangladesh.
Subject: Submission of Internship Report on “The Operating System of ICB Unit
Fund”.
Dear Sir,
It is a matter of immense pleasure for me to submit my Internship Report on “The
Operating System of ICB Unit Fund” and for your kind evaluation. I am certain that the
knowledge and experience acquired while conducting the study will help me in many ways
in future.
I have tried my best to represent my ideas and findings as clearly as I could within the time
and resource available. I hope that the idea presented in the report will provide a clear
picture about ICB Unit Fund.
I have tried sincerely to comprehend and translate my knowledge in writing this report. I
enjoyed this project work and gladly attend any of you call to clarify on my point, if
necessary.
Sincerely Yours
…………………………
Shahriar Zaman
Exam Roll: 1172145
Major in Finance

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Student’s Declaration
I do hereby solemnly declare that the work presented in this Internship report has been
carried out by me and has not been previously submitted to any other University/ College/
Organization for an academic qualification/certificate/diploma or degree.
The work I have presented does not breach any existing copyright and no portion of this
report is copied from any work done earlier for a degree or otherwise.
I further undertake to indemnify the department against any loss or damage arising from
breach of the foregoing obligations.
.....................................
Shahriar Zaman
Examination Roll: 1172145
Session: 2010-2011
Major in Finance

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Supervisor’s Declaration
This is certified that Internship Report on “The Operating System of ICB Unit Fund” in
the bona fide record at the report is done by Shahriar Zaman, National University Roll No:
1172145, Registration No: 1177384, Academic session: 2010-11, Major in Finance is a
regular student of BBA program, Department of Business Administration, Institute of
Science and Technology under the National University of Bangladesh. He has completed an
internship program on “The Operating System of ICB Unit Fund” under my supervision
which is fulfillment of partial requirement of obtaining BBA degree.
I wish his success in all his future endeavors.
____________________
Nafia Laila
Assistant Professor
Acknowledgement

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At the beginning I would like to express my deepest gratitude to my Almighty Allah for give
me the strength and the composure to complete the internship report. Words actually will
never be enough to express how grateful I am, but never the less I shall try my level best to
express my gratefulness towards some people.
I would like to thank my academic supervisor Nafia Laila, Assistant Professor, IST for her
motivation, inspiration, kind direction, valuable suggestions & advices during my internship
period and to prepare this report.
My thanks and gratitude to the authority of Investment Corporation of Bangladesh allows
me to complete my Internship program at their institution. I would like to thank Mr. Sultan
Ahmed, Assistant General Manager, Human Resource Management Department, ICB for his
support, instruction, guidance and co-operation to do my internship successfully. I would
like to give my special thanks to Ms. Nuray Tasmin, Senior Officer; Mr. Torab Ahmed,
Senior Principal Officer; Joynal Hossain, Staff who gave special attention to me right from
the very beginning of my stay at ICB.
Although I face some difficulties while preparing this report but I enjoyed each and every
moment of working in ICB as an internee student. I express my sincere heartiest gratitude to
all the AGM, SPO, PO, SO and Staff of ICB Head Office, who helped directly and indirectly
in different capacities to conduct and complete the study.
I am grateful to my beloved parents, well wishers for their inspiration that lead me to go
ahead. Finally I like to thank all the persons who have directly or indirectly contributed in
preparing this report.
Executive Summary

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Investment Corporation of Bangladesh (ICB) was established in 1976 with the objectives of
accelerating industrialization and economic development of the country through
development of capital market by mobilizing savings and encouraging and improving the
investment climate in the country with particular emphasis placed on broadening the base
and scope of investments as well as attract investors. During 39 years of operation, ICB has
come forward as a responsible and trustworthy public sector institution. The report deals
with the product of ICB named ICB Unit Fund.
The establishment of ICB was challenging and excellent decision taken by the government,
which accelerates the pace of industrialization. On the other hand, develop well organized
and active capital market, primarily security market.
ICB has hold three subsidiary companies as on July 1, 2002. ICB has adopted this new line
of business policy for providing better management, better and quick customer services.
The objective of the study is to gather knowledge that how ICB floats and operating system
of ICB Unit Fund. The business of the ICB Unit Fund is to mobilize savings from investors
by way selling units and investing the funds in securities from the primary and secondary
markets to ensure maximum return for unit holders. It is invested in securities and money
market securities as a single account.
Acronyms

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ICB = Investment Corporation of Bangladesh
NRB = Non-Resident Bangladeshi
ICML = ICB Capital Management Ltd.
IAMCL = ICB Asset Management Company Ltd.
ISTCL = ICB Security Trading Company Ltd.
CIP = Cumulative Investment Policy
EPU = Earnings Per Unit
P/E Ratio = Price Earning Ratio
ROI = Return on Investment
Cr. = Crore
CMDP = Capital Market Development Program
SPO = Senior Principal Officer
PO = Principal Officer

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Table of Contents
Sl. No. Particulars Page No.
Letter of Transmittal I
Student’s Declaration II
Supervisor’s Declaration III
Acknowledgement IV
Executive Summary V
Acronyms VI
Chapter – One
Introduction
1.1 Background of The Study 1
1.2 Origin of The Study 1
1.3 Objective of the Study 1
1.4 Methodology 2
1.5 Limitations of the Study 3
Chapter – Two
Overview of ICB
2.1 Historical Background of ICB 5
2.2 ICB at a glance 5
2.3 Main Objectives of ICB 6
2.4 The functions of ICB 7
2.5 Business Policy of ICB 7
2.6 Vision and Mission of ICB 8
2.7 Management of ICB 8
2.8 Sources of Capital of ICB 9
2.9 Capital Structure of ICB 9
2.10 Share Details of ICB 10
2.11 Shareholding Position of ICB 11
2.12 Financial Performance of ICB 12

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2.13 Branches of ICB 12
2.14 Description of Products & Services of ICB 12
2.15 Subsidiaries of ICB 15
Charter – Three
ICB Unit Fund
3.1 Introduction of Unit Fund 18
3.2 Structure of Unit Fund 18
3.3 History of Unit Fund 18
3.4 Pricing System of Unit Fund 19
3.5 Inception of ICB Unit Fund 19
3.6 Objective of ICB Unit Fund 19
3.7 Price Fixation of ICB Unit Fund 20
3.8 Dividend Distribution Policy of ICB Unit Fund 20
3.9 Benefit of ICB Unit Fund 20
3.10 Other Relevant Information of ICB Unit Fund 21
Chapter – Four
Operating System of ICB Unit Fund
4.1 Management of ICB Unit Fund 22
4.2 Issue and Repurchase of Units 22
4.3 Position of Issued Units 23
4.4 Outstanding Units 24
4.5 Unit Price 24
4.6 Dividend and Interest Income 24
4.7 Capital Gain on Sale of Investments 25
4.8 Interest of Bank Deposits and Premium Income 25
4.9 Income, Expenditure and Distributable income 25
4.10 Dividend Declaration 25
4.11 Net Investment 26
4.12 Classification of Unit Holders of ICB Unit Fund 27

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Chapter – Five
Analytical Review of ICB Unit Fund
5.1 Qualitative Analysis of ICB Unit Fund 29
5.1.1 Strength 29
5.1.2 Weakness 30
5.1.3 Opportunity 30
5.1.4 Threat 31
5.2 Quantitative Analysis of ICB Unit Fund 31
5.2.1 Market Price Per Unit 31
5.2.2 Earnings Per Unit 32
5.2.3 Price Earning Ratio 33
5.2.4 Dividend Per Unit 35
5.2.5 Dividend Yield and Dividend Payout Ratio 35
5.2.6 Return On Investment 37
Chapter – Six
Findings, Recommendations and Conclusion
6.1 Findings 39
6.2 Recommendations 40
6.3 Conclusion 41
Bibliography

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Chapter – One
Introduction

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1.1 Background of the Study
Internship means practical training through attending the particular work physically.
Practical training means a way through which a person or a trainee can gather
experience about the related subject practically and be able to apply his theoretical
experience in the field of real life. Practical training paves the way for gaining
practical knowledge through activities other than reading textbooks and attending
formal academic courses. Practical training is necessary to achieve complete
knowledge about something. Internship program is a form of practical knowledge. I
strongly believe that practical training can open the inner eyes of a man. The works
conducted during the internship program will expand the horizon of our practical
knowledge.
1.2 Origin of the Study
The internship program is an integral part of Bachelor of Business Administration
(BBA) program of National University, Bangladesh. As a student of BBA program in
National University, Bangladesh everyone has to submit a report after completion of
internship program. It is a three months program. I have been assigned to Investment
Corporation of Bangladesh to complete the internship program. I have prepared this
report on the basis of my three months practical working experience in ICB. The
report has been completed under the supervision of my academic supervisor Nafia
Laila, Assistant Professor, Department of Business Administration, IST and my
organizational supervisor Sultan Ahmed, Assistant General Manager, Human
Resource Management Department, ICB.
1.3 Objective of the Study
The objective of the internship program is to familiarize students with real business
situation, to compare with the business theories and at last stage make a report on
assign task.
Objectives regarding this study are as follows:

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1.3.1 Major Objectives
Following are the major objectives of the study:
 The main objective of this report is to fulfill the requirements of BBA program
containing the completion of internship program and preparation of internship
report accordingly.
 This report helps to get a clear idea about ICB and ICB Unit Fund.
1.3.2 Specific Objectives
Following are the specific objectives of the study:
 To know the activities of the Investment Corporation of Bangladesh.
 To know how ICB play an important role in the capital market
 To gain an in-depth knowledge about the Unit Fund of ICB.
 To obtain the knowledge about how the ICB Unit Funds are managed.
 To understand the activities and contribution of Unit Funds in the capital
market.
 To evaluate the performance of ICB Unit Fund.
1.4 Methodology
Methodology is the compulsory requirement for any types of research work. It
contains all the steps that are followed for preparing the study paper or report. Data
for the study were collected mainly from two sources:
 Primary Sources
 Secondary Sources
Both primary and secondary data sources are used in the analysis to take advantage of
the strengths of both types of data to minimize their respective weaknesses by
combining them.

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1.4.1 Sources and Methods of collecting Primary data
 Briefing Session: Incase of corporate organization, this method is very useful.
During internship period I along with my group visited different departments
of ICB and took part briefing session. The head of departments gave briefs the
trainees which were very much useful for us and we gathered some valuable
information from their briefing.
 By observation: This process is very useful for gathering primary data. This
process is very costly, time consuming. Through this process limited but
accurate data can be collected.
1.4.2 Sources and Methods of collecting Secondary data
The Secondary data had been collected with several relevant articles of the ICB.
These are given bellow:
 Annual Report of ICB
 Annual Report of ICB unit fund
 ICB Website
 ICB Ordinance
 Monthly review of DSE & CSE
 Materials & documents of ICB
 Daily Newspapers, journals and books
1.5 Limitations of the Study
Although the internal environment of ICB was much better and the employees were
so much co-operative but like all other field, there were some limitations which I have
to face at the time of my internship and preparing the report. I have worked all the
departments of ICB one after another. But ICB is a large corporation and therefore 12
weeks internship program is too short to know the activities of ICB and prepare a

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comprehensive report on the Unit Fund of ICB. Some other limitations, I have faced
are as follows:
 ICB doesn’t have own building so ICB has to maintain it’s department in
different buildings
 Secrecy of the ICB Official's
 Unavailability of relevant papers and documents
 Insufficiency of necessary information
 Employees of the ICB Head Office, Dhaka particularly those who deal with
Unit Fund as a few numbers and as a result they could not spend much time as
required
 Internship program pattern was theoretical, so I could not gather practical
knowledge of everyday activities.

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Chapter – Two
Overview of ICB

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2.1 Historical Background of ICB
After liberation in view of socio-economic changes the scope for private sector
investment in the economy was kept limited by allowing investment in projects up to
Tk. 25 lacs. The new Investment Policy which was announced in July, 1974 provided
for an expanded role of private sector by allowing investment in a project up to Tk. 3
crores. This ceiling has further been raised to Tk. 10 crores. In spite of the adequate
facilities an incentives provided to the private sector, encouraging response was not
forthcoming. One of the reasons, among others, was the lack of institutional facilities
which provided underwriting support to industrial enterprises which was required to
raise the much needed equity fund. Thus the need for re-activation of capital
market/stock market was keenly felt. In the revised investment policy which was
announced in December, 1975.Government announced its decision to reactivate the
stock exchange and examine the question of re-creation of Investment Corporation of
Bangladesh. Accordingly, a committee of officials examined the matters and
recommended for recreation of ICB.
2.2 ICB at a glance
Investment Corporation of Bangladesh (ICB) is the only Government owned
investment banking financial institution. ICB was established on October 1, 1976
under “The Investment Corporation of Bangladesh Ordinance, 1976” (No. XL of
1976) to encourage and broaden the base of investments, develop the capital market
and mobilize savings. The establishment of ICB is a major step in a series of measures
undertaken by the government to accelerate the pace of industrialization and to
develop a well-organized and vibrant capital market. ICB caters to the need of
institutional support to meet equity gap of the industrial enterprise. In view of the
national policy of accelerating the rate of savings and investment to foster self-reliant
economy, ICB assumes an indispensible and pivotal role. Through the enactment of
the Investment Corporation of Bangladesh (Amendment) Act, 2000 (XXIV of 2000),
space of ICB's activities through the formation and operation of subsidiary companies
has been expanded.

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Name Investment Corporation of Bangladesh
Date of
Incorporation:
October 1, 1976.
Nature: Investment Banking Company
Related Law: Investment Corporation of Bangladesh Ordinance 1976
(No. XL 1976)
Authorized capital: Tk. 1000.00 Crore
Paid Up Capital: Tk. 632.81 Crore
Face value of Share: Tk. 10
Status: Corporation (Listed on the Stock Exchange).
Subsidiaries: ICB Asset Management Company Ltd. (AMCL)
ICB Capital Management Company Ltd. (CML)
ICB Security Trading Company Ltd. (STCL)
Table 2.1: ICB at a glance
2.3 Main Objectives of ICB
 To encourage and broaden the base of investments.
 To develop the capital market.
 To mobilize savings.
 To promote and establish subsidiary for business development.
 To provide for matters ancillary thereto.

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2.4 The functions of ICB
 Direct purchase of shares and debentures including placement and equity
participation
 Participating in and financing of joint-venture companies
 Providing lease finance singly and through syndication
 Managing existing investment account
 Managing Mutual funds and Unit funds
 Managing Portfolios of existing shares
 Conducting computer training programmers
 Providing advance against ICB Unit and Mutual Fund certificate
 To act as Trustee and Custodian
 Providing Bank Guarantee
 Providing Consumer Credit
 Operating on the stock exchanges
 Providing investment counseling to issuers and investors
 Participating in and financing of joint venture projects
 Dealing in other matters related to capital market operation
 Introducing new business products suiting market demand
 To supervise and control the activities of the subsidiary companies.
2.5 Business Policy of ICB
The Corporation has adopted a realistic business policy framework within which its
operation is conducted.
 To act on commercial consideration with due regard to the interest of industry,
commerce, depositors, investors and to the public in general,
 To provide financial assistance to projects subject to their economic and
commercial viability,
 To arrange consortium of financial institutions including Merchant Banks to
provide equity support to projects,
 To develop and encourage entrepreneurs,
 To diversify investments,
 To induce small and medium savers for investment in securities,

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 To create employment opportunities,
 To encourage investment in Agro-based and IT sectors.
2.6 Vision and Mission of ICB
2.6.1 Vision
Continue to be the leading, responsible and environment friendly financial institution
operating in such a way that fellow competitors and the society watch, acknowledge,
admire and emulate ICB as a successful and model organization in the industry.
2.6.2 Mission
 Transforming Corporation into a responsible institution, a financial architect
and an innovative solution provider and performance leader.
 Being a responsible institution created by law and act in accordance with the
mandates ICB's ordinance for fostering rapid growth of Bangladesh economy.
 Being a financial architect and strive to establish a benchmark of values,
attitudes, behavior and commitments with earnest endeavors in generating
optimum profits and growth for our shareholders by efficient use of resources.
 Being an innovative solution provider and put emphasis on formulating total
solutions to foster mobilization of all domestic and NRB savings into potential
investments.
 Being a performance leader and lead by example.
2.7 Management of ICB
The Head Office of the corporation as per the requirement of the ordinance of ICB is
located at Dhaka. The general direction and superintendence of the corporation
created in a board of directors, which consists of persons including the chairman and
managing director of ICB.
The board of directors consists of the following directors:
 The Chairman of ICB to be appointed by the government,
 The Managing Director of ICB to be appointed by the government,

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 The Directors to be appointed by the government from among persons serving
under the government,
 One Director to be nominated by the Bangladesh Bank,
 The Managing Director, Bangladesh Development Bank Limited (Ex-officio),
 Four other Directors to be elected by the shareholders as per ICB Act.
2.8 Sources of Capital of ICB
Every organization collects funds from several sources. It may be internal sources or
externals. In case of Investment Corporation of Bangladesh, it’s main sources of
capital is Paid-up Capital, Reserves, Retained profit. However, the corporation is
authorized to borrow fund from Government and other agencies including
International Agencies both in local and foreign currencies.
2.9 Capital Structure of ICB
Capital Structure as on 30 June, 2014 and 30 June, 2015:
Particulars 2015 2014 Increase/Decrease (%)
Paid-up Capital 632.81 421.88 49.99%
Reserves 1888.88 2035.09 -7.18%
Retained Profit 491.16 625.95 -21.53%
Total 3012.85 3082.92 -2.27%
Table 2.2: Capital structure

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16.3%
21.0%
Paid-Up capital
Reserve
Retained Profit
62.7%
Figure 2.1: Capital structure as on 30 June, 2015
2.10 Share Details of ICB
Particulars
Listing Year 1977
Market Category A
Electronic Share Yes
Face Value 10Tk
Current EPS 7.10Tk
Market Price 125.60Tk
Table 2.3: Share details

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2.11 Shareholding Position of ICB
Shareholding position as on 30 June, 2015 is given below:
Sl.
no.
Shareholders No. of
shareholders
No. of Shares Percentage of
shareholding
1. Government of the
People’s Republic of
Bangladesh
1 170859380 27.00
2. Development Financial
Institutions
2 162196110 25.63
3. State owned commercial
banks
4 143819220 22.73
4. State owned insurance
corporations
2 78187860 12.36
5. Denationalized Private
Commercial Banks
2 57586290 9.10
6. Private Commercial
Banks
6 462303 0.07
7. Mutual Funds 11 6226843 0.98
8. Other Institutions 243 2700686 0.43
9. General Public 4359 10773808 1.70
Total 4629 632812500 100.00
Table 2.4: Shareholding position of ICB

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2.12 Financial Performance of ICB
Financial performance in 2014-15 financial year of ICB is given below:
Particulars Result
Net Profit After Tax Tk. 406.73 cr.
Total Income Tk. 1044.19 cr.
Book Value per Share Tk. 61.13
Shareholders Equity Tk. 3856.61 cr.
Total Asset Tk. 10132.69 cr.
Dividend Payout Tk. 221.48
Dividend per Share 35% (proposed)
Table 2.5: Financial performance of ICB
2.13 Branches of ICB
a. Chittagong Branch
b. Rajshahi Branch
c. Khulna Branch
d. Barisal Branch
e. Sylhet Branch
f. Bogra Branch
g. Local Office
2.14 Description of Products & Services of ICB
2.14.1 Advance against Equity, Private Equity, Placement of Shares
As part of business diversification and encouraging rapid industrialization of the
country, the scheme for advance against equity, private equity participation &
placement of shares etc. have been introduced since inception of the Corporation. ICB

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invests in different companies through equity participation either singly or under
consortium arrangements of different banks and financial institutions.
2.14.2 Advance against ICB Unit Fund, Bangladesh Fund Certificates etc
Advance against ICB Unit certificate scheme was introduced in 1998 for the ICB Unit
holders to meet their emergency fund requirements. Presently ICB provides advance
against the certificates of ICB Unit Fund, Bangladesh Fund, ICB AMCL Pension
holders Unit Fund and ICB AMCL Unit Fund. One can borrow maximum 80.0
percent of initial surrender value by depositing his/her unit certificates under lien
arrangement from any of the ICB offices and authorized banks.
2.14.3 Managing Margin Loan Accounts, Unit and Mutual Funds
Investment account holders can avail margin loan facilities to purchase securities
from both primary and secondary markets as per SEC margin rules. Margin loan is
provided for purchasing securities with sound fundamentals and good prospects so as
to reduce risk of investment to protect the interest of the investors.
2.14.4 ICB Unit Fund
It is an open-end mutual fund scheme launched in April 1981, through which the
small and medium savers get opportunity to invest their savings in a balanced and
relatively low risk portfolio. ICB has so far declared attractive dividends on units
every year ranging from the lowest Tk. 11.5 to the highest Tk. 42.50 per unit.
Investments in units enjoy tax benefits, amount being applicable as per law.
2.14.5 ICB Mutual Funds
ICB has so far floated eight closed-end mutual funds. The First ICB Mutual Fund was
floated on 25 April 1980, while the Eighth ICB Mutual Fund was floated on 23 July
1996. The aggregate size of these funds is Tk. 17.75 crore. As on 30 June 2015,
18517 certificate holders owned these funds. ICB Mutual Funds have declared
lucrative dividend ranging from 120% to 1000% for the year ended 30 June 2015.
Investors show overwhelming interest in all the ICB Mutual Funds. New mutual
funds are now being floated through "ICB Asset Management Company Ltd."- a
subsidiary of ICB after corporate restructuring.

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2.14.6 Mergers & Acquisition
Companies willing to expand their business through mergers or acquisitions or to
divest projects that no longer fit into present scale of operation contact the
Corporation. ICB provides professional advisory services in respect of shaping up the
cost and financial structures to ensure best possible operational results.
2.14.7 Trustee & Custodian Activities
ICB is acting as trustee to the debenture issues and securitized bonds. Up to 30 June
2015 ICB has acted as trustee to the debenture issues of 17 companies involving Tk.
184.15 crore and issues of 19 bonds of 16 companies involving Tk. 2369.36 crore.
ICB has also undertaken the responsibilities of trustee to 26 closed-end mutual funds
involving Tk. 2525.75 crore and 6 open-end mutual funds involving Tk. 180.00 crore
upto 30 June 2015.
2.14.8 Portfolio Management
Being the largest institutional investor, ICB contributes significantly to the
development of the country's capital market through active portfolio management
which is one of the important functions of ICB. There are altogether eleven portfolios
which are being managed by ICB- eight of them are mutual funds, two are ICBs own
portfolio and the rest one is unit fund portfolio.
2.14.9 Lease Financing
ICB provides lease finance mainly for procurement of capital machinery, equipment
and transport to the prospective companies. The period of lease, rentals, charges and
other terms and conditions are determined on the basis of assets and assistance
provided as per requirement of the lessee.
2.14.10 Fixed Deposit Receipt (FDR)
Providing a tailored solution is the essence of our services. ICB recognizes that a
customized solution like FDR is vital for the success of the business. Whether it is a
Project Finance or Term Loan, ICB offers the right solution from where applicants

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find top-class skills and in-depth knowledge of market trends from our specialists -
altogether a gratifying experience.
2.14.11 Issuing Bank Guarantee
ICB has introduced the Bank Guarantee scheme in 2002-03. ICB provides (i) Bid
bond guarantee for enabling the business people to participate in any tender or
bidding; (ii) Performance bond guarantee for helping the business community to
continue their business smoothly by fulfilling their obligations promised by them to
their clients; (iii) Customs guarantee for solving different disagreements between the
customs authority and the business classes at the initial stage. The limit of guarantee
is issued against at least 20.00 per cent cash and 80.00 per cent easily en-cashable
securities or against 100.00 per cent cash margin.
2.14.12 Corporate Financial Advice
ICB and its subsidiary company ICB Capital management Limited provide
professional & financial advices on corporate restructuring & reengineering to
companies of Govt. enterprise those who are intently to offload shares in the Capital
market.
2.15 Subsidiaries of ICB
2.15.1 ICB Capital Management Ltd. (ICML)
ICB Capital Management Ltd. is a fully owned subsidiary of Investment Corporation
of Bangladesh. The company obtained license from the Securities and Exchange
Commission to act as Issue Manager, Underwriter and Portfolio Manager and to carry
out other merchant banking operations under the Securities and Exchange
Commission (Merchant Banker and Portfolio Manager) Regulations, 1996. The
company was incorporated under the Companies Act, 1994 on 5 December 2000 and
obtained registration from the Securities & Exchange Commission on 16 October
2001. The company started its' operation from 01 July, 2002 upon issuance of gazette
notification by the government. The Company has a separate Board of Directors
comprising 3 members from the private sector having good academic qualification,

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expertise and experience in the field of business, finance and investment. The
Managing Director of ICB is the Chairman of the Board. The company has excellent
working environment being equipped with logistics and computer facilities.
2.15.2 ICB Asset Management Company Ltd. (IAMCL)
ICB Asset Management Company Ltd. a subsidiary of Investment Corporation of
Bangladesh (ICB) commenced its journey on 5th December, 2000 with the objective
of professionally managing investment funds. The Company offers different types of
investment schemes where savings are pooled for investment in the capital market.
These schemes are designed to hand out best possible benefits to the investors at the
lowest possible risk. Investment in the securities market, for that matter any
investment, carries risk. But there are many techniques to reduce such risk. The
Company is managed by a group of experts who have the necessary skills, knowledge
and aptitude not only to handle risk but also to ensure optimum return taking into
consideration the environment prevailing in the market. ICB Asset Management
Company Ltd., are in a unique position to handle risk-return profile of an investment
efficiently and prudently. It is now managing fifteen funds - ten close-ends Mutual
Fund and five open-end Mutual Funds known as Unit Fund. Some more new funds
are in the offing. The company is engaged in investment management; more
specifically floating and managing both open-end and closed end mutual funds. The
company is dedicated towards development of mutual fund industry as well as the
capital market of Bangladesh.
2.15.3 ICB Securities Trading Company Ltd. (ISTCL)
ICB Securities Trading Company Limited (ISTCL) was formed as a subsidiary
company of Investment Corporation of Bangladesh (ICB) in the year 2000 to perform
stock brokerage functions, as part of the restructuring program of ICB under the
Capital Market Development Program (CMDP) initiated by the Government of
Bangladesh (GOB) and the Asian Development Bank (ADB). The Company is being
operated pursuant to its own Memorandum and Articles of Association, BSEC's rules
and regulations and other applicable laws. It has independent Board of Directors and
separate management. The Company emerged as a public sector stock broking
company just after the introduction of Automated Trading System in the country. The

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Transaction Department of ICB turned into ISTCL adopting electronic trading system
and upgraded technologies in delivering services. The Company started brokerage
activities in Dhaka Stock Exchange Limited (DSE) and Chittagong Stock Exchange
Limited (CSE) after having licenses from Bangladesh Securities and Exchange
Commission (BSEC) on 13 August 2002 and 07 February 2004 respectively. The
Company started its Stock Dealer function from 15 February 2010. The Company
offers stock brokerage services for its diverse clients through the extended network of
head office and 07 (seven) branch offices in major important cities of the country.
These services are made available by a highly dedicated workforce of 118 employees
through 58 trading terminals, one of the largest networks in Bangladesh. ISTCL has
passed 13 years of its voyage in providing full-fledged standard brokerage services
and thus it has become the country's leading stock brokerage service provider and
gained trust and reliability of both the individual and institutional investors.

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Chapter – Three
ICB Unit Fund

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3.1 Introduction of Unit Fund
Unit Funds are portfolios of assets such as equities, bonds, cash and listed property, in
which investors can buy units. This allow to investors to spread their risk, whilst
getting the benefits of professional fund management.
Unit Funds are open-ended investments, meaning that unlike investment funds there is
not a finite number of units in issue and these can increase or decrease dependent
upon the net sales and repurchase by existing unit holders. These units are managed
within what is known as the "Managers Box". The Box Manager of the fund will
make a decision at each valuation point whether or not to Create (add) or to Liquidate
(remove) units based on the final net sales and redemptions prior to the next valuation
point where the Fund is priced on a "Forward Basis", or at the actual valuation point
where the fund is priced on an Historic basis.
The underlying value of the assets is always directly represented by the total number
of units issued multiplied by the unit price less the transaction or management fee
charged and any other associated costs. Each fund has a specified investment
objective to determine the management aims and limitations.
3.2 Structure of Unit Fund
 The fund manager runs the fund for profit.
 The trustees ensure the fund manager keeps to the fund's investment
objective and safeguards the fund assets.
 The unit holders have the rights to the fund assets.
 The distributors allow the unit holders to transact in the fund manager's unit
funds.
 The registrars are usually engaged by the fund manager and generally act as a
middleman between the fund manager and various other stakeholders.
3.3 History of Unit Fund
The first Unit Fund was launched in the UK in 1931 by M&G under the inspiration
of Ian Fairbairn. The rationale behind the launch was to emulate the comparative
robustness of US mutual funds through the 1929 Wall Street crash. The first fund

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called the “First British Fixed Trust” held the shares of 24 leading companies in a
fixed portfolio that was not changed for the fixed lifespan of 20 years. The trust was
re-launched as the M&G General Trust and later renamed as the Blue Chip Fund. By
1939 there were around 100 trusts in the UK, managing funds in the region of £80
million.
3.4 Pricing System of Unit Fund
Unit funds are priced per unit on a forwarding pricing basis. This means that when a
person buy or sell units he or she do so at the closing price of that day. Price changes
daily and is determined by the net asset value (NAV) of the portfolio’s underlying
investments.
3.4.1 Volatility
Volatility refers that price of a unit fund fluctuates over a certain period therefore, it’s
risk. Funds with a higher volatility usually offer higher returns than low volatility
fund. Returns may fluctuate over short time periods and investors need to know what
their time horizon is when choosing a fund.
3.5 Inception of ICB Unit Fund
With the approval of the Govt. of Bangladesh, ICB Unit Fund was formed in April,
1981 by the Investment Corporation of Bangladesh under section 21 (2) of the
Investment Corporation of Bangladesh Ordinance, 1976 and ICB Unit Regulations,
1981.
ICB Unit fund is an open ended Mutual Fund. It provides an opportunity to the unit
holders to invest their funds in a well managed and diversified portfolio with a high
degree of security of capital and reasonable yearly returns.
3.6 Objective of ICB Unit Fund
The main objective of ICB Unit Fund is to mobilize savings through sale of its units
to small investors and invest these funds in marketable securities. This scheme
provides a potential source of equity and debt to industrial and commercial concerns
and thus contributes to the industrial development of the country.

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3.7 Price Fixation of ICB Unit Fund
The repurchase price of unit is fixed in the regular meeting of the Unit Price Fixation
Committee. For the fixation of unit price asset value of fund is considered among
others. Information regarding change of unit price is published in well-known national
daily newspaper, website and notice board of ICB.
3.8 Dividend Distribution Policy of ICB Unit Fund
At least 70% of the annual profit is declared by board of directors of ICB as dividend
according to the Securities and Exchange Commission (Mutual Funds) Rules, 2001.
Dividend Warrants are dispatched after declaration of dividend.
3.9 Benefit of ICB Unit Fund
ICB unit holders can enjoy the following benefits:
 The re-purchase price of ICB Unit is re-fixed as per the latest NAV (Net
Asset Value) according to the Mutual Fund Rules. The repurchase price of
ICB Unit change with the movement of Asset value of Unit Fund. This
facilitates the unit holders to withdraw their investment at a rational price at
any time.
 The re-purchase price, net asset value and other price sensitive information
are regularly published in the website and national daily news paper. As a
result the investors can get necessary information easily.
 At least 70% of the annual profit is declared by board of directors of ICB as
dividend according to the Securities and Exchange Commission (Mutual
Fund) Rules, 2001. This confirms the regular dividend.
 The unit holders can avail temporary loan against lien of unit certificates
from ICB and other bank/financial institutions.
 Unit holder can nominate somebody.
 Unit holders can enjoy Investment Allowance as per Para 44(2) of the Income
tax Ordinance 1984.
 All income of the ICB Unit Fund is tax-free.
 Dividend declared by ICB Unit Fund upto a limit (at present Tk.25,000) is
tax-free.

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3.10 Other Relevant Information of ICB Unit Fund
 In case of non receipt or lost dividend warrants duplicate dividend warrant is
issued after observing necessary formalities.
 Unit holders should immediately communicate any change of address to the
issuing offices so that no problem arises in dispatching dividends and
surrendering the certificates.
 Units can be en-cashed at the prevailing Repurchase Price by submitting the
prescribed surrender forms duly filled in and signed by the registered holders
and no prior notice is required.
 Daily transactions are being held during banking hours except Thursday,
holidays and in the month of July each year.

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Chapter – Four
Operating System of ICB Unit Fund

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4.1 Management of ICB Unit Fund
The overall responsibility of managing ICB Unit Fund rests on Investment
Corporation of Bangladesh.
4.2 Issue and Repurchase of Units
In terms of power conferred in the ICB Ordinance, under the Capital Market
Development Program (CMDP) initiated by the Govt. of Bangladesh and the Asian
Development Bank, ICB Asset Management Company Ltd.-a subsidiary of ICB has
been formed which started its functions from 1 July, 2002. Subsequently ICB stopped
selling of Unit certificates (except under CIP) from the same date.
During 2014-15, 6384257 Units of Tk. 127.69 crore were issued under the
Cumulative Investment Plan (CIP) while 700428 Units of Tk. 15.54 crore were
repurchased. The following graph shows a comparative position of gross issue (CIP),
repurchase and net issue of units for the periods from 2010-11 to 2014-15:
(Tk. in Cr.)
140
120
100
80
60 52.36
68.63
55.48
79.99
59.28
101.57
85.56
127.69
112.15
38.42
40
20 13.94 13.15
20.71
16.01 15.54
0
2010-11 2011-12 2012-13 2013-14 2014-15
Gross Issue/CIP Repurchase Net Issue
Figure 4.1: Gross issue (CIP), repurchase and net issue of units of ICB Unit
Fund

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4.3 Position of Issued Units
A position of gross issue of Units under Cumulative Investment Plan (CIP) through
ICB and other institutions during 2014-15 is given below:
SL.
No
Name of Institution No. of Units Issued Percentage
1. Investment Corporation of
Bangladesh
5188458 81.27
2. IFIC Bank Limited 439946 6.89
3. Sonali Bank Limited 263285 4.12
4. Agrani Bank Limited 163788 2.57
5. United Commercial Bank
Limited
156242 2.45
6. Uttara Bank Limited 51196 0.80
7. Eastern Bank Limited 38949 0.61
8. City Bank Limited 23482 0.37
9. Janata Bank Limited 18305 0.29
10. Rupali Bank Limited 16002 0.25
11. Bangladesh Krishi Bank 14868 0.23
12. Dhaka Bank Limited 9480 0.15
13. Prime Bank Limited 256 0.004
6384256 100.00
Table 4.1: Position of Units issued under CIP through ICB and other institutions

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From the above Table 4.1, It is observed that in 2014-15 under CIP the highest 81.27
percent units were issued through the offices of ICB followed by 6.89 per cent and
4.12 per cent through IFIC Bank Ltd. and Sonali Bank Ltd. respectively.
4.4 Outstanding Units
The total number and value of units outstanding as on 30 June, 2015 was 62771858
units and Tk. 838.45 crore respectively. A comparative position of outstanding units
of ICB unit Fund for the periods from 2010-11 to 2014-15 is given below:
6.50
6.00
5.50
5.00
Number Of unit in crore
4.50
4.00
3.50
2010-11 2011-12 2012-13 2013-14 2014-15
Figure 4.2: Number of outstanding units of ICB Unit Fund
4.5 Unit Price
On 1 August 2014, when the transactions of Units resumed the opening issue/CIP and
repurchase prices of each Unit were fixed at Tk. 204.00 and Tk. 200.00 respectively.
The closing repurchase price was Tk.255.00 as on 30 June, 2015.
4.6 Dividend and Interest Income
In 2014-15 the Fund has earned an amount of Tk. 102.72 crore as dividend from 171
companies and interest on debenture securities of Tk. 6.97 crore resulting in total

39 | P a g e
dividend and interest income of Tk. 109.69 crore which is 6.37% higher than the
previous year. The total dividend and interest income during 2013-14 was Tk. 103.12
crore.
4.7 Capital Gain on Sale of Investments
During 2014-15 the Fund has earned an amount of Tk. 299.75 crore as capital gains
by selling securities of 25 companies compared to Tk. 272.98 crore earned in 2013-14
by selling securities of 54 companies.
4.8 Interest of Bank Deposits and Premium Income
In 2014-15 the Fund has earned Tk. 15.72 crore as interest on bank deposits which
was Tk. 9.17 crore in 2013-14.
In 2014-15, the Fund has earned Tk. 2.55 crore as premium on total issued Units as
against Tk. 2.26 crore in 2013-14.
4.9 Income, Expenditure and Distributable income
During the year under review, the Fund has earned a total income of Tk. 429.19 crore
by way of dividend, interest on debenture securities, capital gain, interest on bank
deposits, premium on issue of units and others. After deducting the total expenses of
Tk. 67.32 crore on account of management fee, custodian fee, commission and
brokerage, audit fee, postage, Bank charges, provision against investments and others
the fund had a net income of Tk. 361.87 crore. Together with the previous year's
undistributed income of Tk. 369.70 crore, the Fund had a net distributable income of
Tk. 731.58 crore. The distributable income per certificate stood at Tk. 116.55. The
Fund had 62771858 outstanding Units as on 30 June, 2015.
4.10 Dividend Declaration
266.78 crore for 2014-15 in the meeting held on 30 July, 2015. The unit holders
whose names The Board of Directors of ICB declared dividend at the rate of Tk.
42.50 per unit payout of Tk. appeared in the register on 30 June, 2015 were entitled to
this dividend. The rest amount of Tk. 464.80 crore would be retained in the fund's

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account. The following table shows dividend performance of ICB Unit Fund for the
periods from 2005-06 to 2014-15:
Financial Year Dividend Per Unit (Tk.)
2005-06 12.00
2006-07 13.00
2007-08 20.00
2008-09 22.00
2009-10 26.00
2010-11 30.00
2011-12 32.00
2012-13 36.50
2013-14 40.00
2014-15 42.50
Table 4.2: Dividend per unit of ICB Unit Fund
4.11 Net Investment
The net investment of ICB Unit Fund stood at Tk. 1863.46 crore as on 30 June, 2015
which market value was Tk. 4017.79 crore. The ex-dividend Net Asset Value (at
market price) was Tk. 550.95 per unit as on 30 June, 2015.

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4.12 Classification of Unit Holders of ICB Unit Fund
As on 30 June, 2015 the numbers of unit holders was 29360. The occupation-wise
classification of unit holders of ICB Unit Fund is given below:
Sl. no Occupation / Institution No. of Unit
Holders
Percentage
1. Public and private sector
employees
16872 57.48
2. Retired persons 1779 6.06
3. Engineers, doctors, lawyers etc. 1930 6.57
4. Businessmen and agriculturists 842 2.87
5. Defense personnel 1302 4.43
6. House-wives 1470 5.01
7. Workers and students 2064 7.03
8. Bangladeshis residing abroad 1810 6.16
9. Institutional provident fund 36 0.12
10. Others 1255 4.27
Total 29360 100.00
Table 4.3: Occupation-wise classification of unit holders of ICB Unit Fund

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7.03%
5.01%
4.43%
2.87%
6.57%
4.27%
0.12%
6.16%
57.48%
Public and private sector
employees
Retired presons
Engineers, doctors, lawyers
etc
Businessmen and
agriculturists
Defense personnel
House-wives
Workers and students
Bangladeshis residing
6.06%
abroad
Institutional provident fund
Others
Figure 4.3: Percentage of unit holders of ICB Unit Fund
From the above Figure 4.3, It may be noticed that out of the total unit holders of ICB
Unit Fund as on 30 June, 2015, Public and private sector employees accounted for
maximum of 57.48% who are mainly of small and medium size income group. It
represents that ICB Unit Fund has succeed to attract small and medium savers.

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Chapter – Five
Analytical Review of ICB Unit Fund

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There are two types of analysis. They are:
 Qualitative Analysis
 Quantitative Analysis
5.1 Qualitative Analysis of ICB Unit Fund
SWOT analysis has been done in the qualitative analysis of ICB Unit Fund.
5.1.1 Strength
Strength is the internal factor of SWOT analysis. ICB Unit Fund Department has
some strength which are must more attractive for every investor. As a result investors
are investing their money in the ICB Unit Fund. The ICB Unit Fund strength is given
below:
 ICB Unit Fund more popular for investors, because every year authority
declared handsome dividend for unit holders.
SWOT
Strength Weakness
ThreatOpportunity

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 Higher job satisfaction exists among the employer and employee. Not engaged
in unfair business practice. As a result investors are investing money in the
ICB Unit more safely
 Good co-operation among the officers and executives in the ICB Unit Fund
Department.
 Risk less investment because ICB Unit Fund authority every year declared
handsome dividend.
 ICB Unit Fund investment processes comparatively easy another institution
Chittagong Stock Exchange.
 Loan facilities are available.
 Good consumer relationship.
 Cumulative Investment Plan (CIP) attractive for every category investors.
5.1.2 Weakness
Weakness is the internal factor of SWOT analysis. In the world everything is not good
enough. So, everything has weakness. In that's reasons ICB Unit Fund have some
weakness which weakness are not favorable for investors. Weaknesses are as follows:
 Loan facilities are not sufficient for investors.
 Most of officers are not business graduate and not highly qualified.
 There is information gap between head office Unit Fund Department and
Chittagong Branch office.
 Absence of sufficient computer facilities.
 Reluctant to Advertisement campaign.
5.1.3 Opportunity
Opportunity is the external factor of SWOT analysis. Opportunities of ICB Unit Fund
are given below:
 Can increase loan facilities.
 ICB Unit Fund more reliable to local public (investors).
 Govt. has taken steps to develop capital market.

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5.1.4 Threat
Threat is the external factor of SWOT analysis. There are some threats of ICB Unit
Fund. They are:
 There are many competitors in the market.
 Different classic service of competitors.
 Young energetic, dynamic, talent and smart work force of competitors.
 To morons business word is for knowledge organization.
 Fund constant in financing for modem technologies.
 Shortage of updated expertise.
5.2 Quantitative Analysis of ICB Unit Fund
Some Financial ratio analysis has been done in quantitative analysis of ICB unit fund.
5.2.1 Market Price Per Unit
Market price per unit refers to the price in which a unit can be purchased. In case of
ICB Unit Fund, there are mainly two types of prices. First one is issue price and other
one is repurchase price. In following figure, issue price is given because mass people
buy unit at this price.
250
200
150 159
170
180 184
204
100
Market Price Per Unit
50
0
2010-11 2011-12 2012-13 2013-14 2014-15
Figure 5.1: Market price per unit of ICB Unit Fund

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The above figure shows the market price per unit of ICB Unit Fund for the periods
from 2010-11 to 2014-15. The figure represents that the market price of ICB Unit
Fund is increasing year by year.
5.2.2 Earnings Per Unit
Earning per unit is the amount of earning that is earned into each unit of ICB Unit
Fund. The calculation of earnings per unit for the periods from 2010-11 to 2014-15 is
given below:
Financial
Year
Net Income (1)
(Tk. in Cr.)
No. of Units
Outstanding (2)
(Units in Cr.)
Earnings Per
Unit (3)
(1) ÷ (2) = (3)
2010-11 180.59 4.54492 39.73
2011-12 196.37 4.87698 40.26
2012-13 269.99 5.22429 51.68
2013-14 304.60 5.50880 55.29
2014-15 361.87 6.27719 57.65
Table 5.1: Earnings per unit of ICB Unit Fund
EPU reflects the earnings which a unit holder can get to hold a unit. Earning per unit
of ICB Unit Fund is increasing at a good rate. To make a clear look of earnings per
unit is given in the following figure:

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70
60
50 51.68
55.29
57.65
40 39.73 40.26
30
Earnings Per Unit
20
10
0
2010-11 2011-12 2012-13 2013-14 2014-15
Figure 5.2: Earnings per unit of ICB Unit Fund
From the above figure, It is easily noticed that the EPU line is up-warding and it is a
good sign because it represents that EPU of ICB Unit Fund is increasing in every year
at a good rate. EPU is calculated for the last five years. In 2010-11, EPU is Tk. 39.73
and in 2014-15, EPU is Tk. 57.65. So within five years of time span, EPU of ICB Unit
Fund has been grown near about 45% and it is a remarkable sign.
5.2.3 Price Earning Ratio
Price earning ratio is basically the amount unit holders are willing to pay for a unit,
relative to its earnings. Price earning ratio is also known as P/E ratio. P/E ratio reflects
the earnings potential of a company in the eyes of investors.
A high P/E ratio indicates company has good growth prospects that it will make more
profit in the future and a low P/E ratio indicates that unit holders get more earnings
against their investment.
Market price per unit and Earnings per unit both are used to calculate P/E ratio of ICB
Unit Fund. The calculation of P/E ratio for the periods from 2010-11 to 2014-15 is
given below:

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Financial
Year
Market Price Per Unit
(1)
Earnings Per Unit
(2)
P/E Ratio (3)
(1) ÷ (2) = (3)
2010-11 159 39.73 4.00
2011-12 170 40.26 4.22
2012-13 180 51.68 3.48
2013-14 184 55.29 3.33
2014-15 204 57.65 3.54
Table 5.2: Price earning ratio of ICB Unit Fund
In the above table, we get P/E ratio for the last five years. Now P/E ratio is presented
in the following figure to make a better view:
4.5
4 4
3.5
3
4.22
3.48
3.33
3.54
2.5
2
1.5
P/E Ratio
1
0.5
0
2010-11 2011-12 2012-13 2013-14 2014-15
Figure 5.3: P/E ratio of ICB Unit Fund
From the above graph, it is noticed that there has been a little fluctuation in the P/E
ratio of ICB Unit Fund. The highest P/E ratio was in 2010-11 and P/E ratio line is
down-warding.

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5.2.4 Dividend Per Unit
Last five year’s dividend per unit of ICB Unit Fund is given in the following figure:
45
40
35
32
30 30
40
36.5
42.5
25
Dividend Per Unit
20
15
10
5
0
2010-11 2011-12 2012-13 2013-14 2014-15
Figure 5.4: Dividend per unit of ICB Unit Fund
In every year dividend per unit is increasing of the ICB Unit Fund. Above figure
shows ICB Unit Fund’s dividend per unit line is up-warding year by year at a good
rate.
5.2.5 Dividend Yield and Dividend Payout Ratio
Dividend yield indicates how much ICB Unit Fund pays out to its unit holders as
dividends each year relative to its unit market price.
Dividend payout ratio indicates the percentage of ICB Unit Fund’s earnings paid out
to unit holders as cash dividend each year.
Dividend yield and dividend payout ratio of ICB Unit Fund for the periods from
2010-11 to 2014-15 is given in the following table:

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Financial
Year
Dividend
Per
Unit (1)
Market
Price Per
Unit (2)
Dividend
Yield (3)
(1)÷(2) = (3)
Earnings
Per
Unit (4)
Dividend
Payout (5)
(1)÷(4) = (5)
2010-11 30 159 18.87% 39.73 75.51%
2011-12 32 170 18.82% 40.26 79.48%
2012-13 36.50 180 20.28% 51.68 70.63%
2013-14 40 184 21.74% 55.29 72.34%
2014-15 42.50 204 20.83% 57.65 73.72%
Table 5.3: Dividend yield & Dividend payout ratio of ICB Unit Fund
Dividend yield and Dividend payout ratio of ICB Unit Fund is given in the following
figure:
100.00%
90.00%
80.00%
70.00%
75.51%
79.48%
70.63% 72.34% 73.72%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
18.87% 18.80% 20.28% 21.74% 20.83%
Dividend
Yield
Dividend
Payout
0.00%
2010-11 2011-12 2012-13 2013-14 2014-15
Figure 5.5: Dividend yield and Dividend payout ratio of ICB Unit Fund

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From the above figure it is noticed that Dividend payout ratio is down trend which
means company use much of its earning to reinvest in the company. On the other
Dividend yield is little bit up-warding which means company is attempting to attract
the investors for investing in ICB Unit Fund.
5.2.6 Return On Investment
ROI of ICB Unit Fund for the periods from 2010-11 to 2014-15 is given below:
Financial Year Net Income (1) Total Investment (2) ROI (3)
(1) ÷(2) = (3)
2010-11 180.59 1190.13 15.17%
2011-12 196.37 1277.18 15.37%
2012-13 269.99 1532.21 17.62%
2013-14 304.60 1667.55 18.27%
2014-15 361.87 1863.46 19.42%
Table 5.4: ROI of ICB Unit Fund
ROI represents the return of an investment relative to its investment.
25.00%
20.00%
15.00%
10.00%
15.17% 15.37%
17.62% 18.27%
19.42%
ROI
5.00%
0.00%
201-11 2011-12 2012-13 2013-14 2014-15
Figure 5.6: ROI of ICB Uit Fund

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Above figure shows the calculation of ROI of Investment Corporation of Bangladesh.
A high ROI means the investment gains comparatively favorable to investment cost.
Last Five years ROI of ICB Unit Fund is given. Every year ROI of ICB Unit Fund is
increasing. ROI line is up-ward which means ICB Unit Fund gain that is
comparatively good against it’s investment cost.

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Chapter – Six
Findings, Recommendations and
Conclusion

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6.1 Findings
ICB has established to develop capital market, to mobilize savings and to broaden the
base of investment. ICB operate the capital market with skilled and experience
financial experts. The credit of its good performance and reputation solely goes to its
professionals. All of its security trading and investment decision is taken by
professional management team.
ICB Unit Fund has gain investor confidence mainly medium savers. Public and
private sector employees accounted for 57.48% of total unit holders who are mainly
of small and medium size income group.
Findings which relate to different department of ICB and ICB Unit Fund are given
below:
 ICB promote and establish subsidiary for business development and broaden
the base of investment.
 ICB Unit Fund gives lucrative dividend.
 Earning per unit is good with current situation.
 ROI is a growing trend of ICB Unit Fund which gains reliability of investors.
 Withdraw of any funds or securities, are very lengthy and complicated
process.
 In case of buying and selling shares, which are ordered by investors, takes
much time to execute by ICB. So investors' are not getting their calculated
profit.
 Office layout and interior decoration of ICB are not in good position.
 Because of less employees and lack of proper training facilities, investors get
poor customer service.
 Most of the people of Bangladesh are not very familiar with ICB's activity.

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6.2 Recommendations
Although ICB is one of the top performing company, I have some suggestion for ICB
to improve its performance be more efficient,
 ICB has skilled and experiences fund manager but they perform only on
security trading. The trade monitors and stock fraud monitoring tram of ICB is
lack of human resource. ICB should enroll more human resource on those
fields.
 ICB was should process a team of technical personnel to carry out the
appraisal ask. At least the Corporation should appoint some expertise that has
the ability to evaluate the supplied appraisal report which are now lacking.
 The Corporation should have a training institution.
 The Central Depository System (CDS) is essential in ICB.
 IT sector of ICB needs Internal Transfer of Share (ITS).
 Arrangement should be made to deliver the Unit Certificate to the investors
within the reasonable time limit.
 In case of portfolio selection, the ICB Unit Fund management should include
those companies’s share which performance is better.
 Unit Fund management should diversify its cash in those sector from which
high return is possible.

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6.3 Conclusion
To conclude this report it can be said that it was a great opportunity for me to study
the operational activities of the investment bank as well as capital market of the
country. The Investment Corporation of Bangladesh (ICB) is virtually the only
investment bank in Bangladesh. In a broader sense ICB is both Investment Bank and
Development Finance Institution (DFI). ICB plays a vital role to encourage and
broaden the base of investments and thereby to help develop the capital market in
Bangladesh.
My main focus on this report is operating system of ICB Unit Fund. From the analysis
it found that the Unit Funds position is good. There is low risk involvement. The main
reason behind this, there was no binding in size. ICB Unit Fund attracts investor by
well management. ICB Unit Fund also declared a handsome dividend.
The study is the first time for me to get the opportunity for conducting such an
elaborate study in this field. Hence, I do not know how far I am successful in writing
this report. But it is true I have tried sincerely to discharge my duties with zeal and
enthusiasm and to the best of satisfaction. However, I remain apologize for any error
or omission which may happen unwillingly.

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Bibliography
1. Investment Corporation of Bangladesh (ICB) 2014-2015. Annual Report,
Dhaka ICB.
2. Investment Corporation of Bangladesh (ICB) 2013-14. Annual Report,
Dhaka ICB.
3. Investment Corporation of Bangladesh (ICB) 2014-15. Annual Report of
Unit Fund, Dhaka ICB.
4. Investment Corporation of Bangladesh (ICB) 2013-14. Annual Report of
Unit Fund, Dhaka ICB.
5. Pandey, I. M. (1998), Financial Management.
6. Bernstein, L. A. (1983), Financial statement analysis: Theory, application,
and interpretation.
7. http://www.icb.org.bd/zindex.php
8. http://www.investopedia.com/university/ratios/

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