ICB AMCL First Mutual Fund to be redeemed next month

ICB AMCL First Mutual Fund will be redeemed next month as the closed-end fund will complete its 10-year tenure.
With the redemption of the fund, it would also be delisted from the stockmarket and transaction of the units would be discontinued from September 28, according to a web posting on the Dhaka Stock Exchange yesterday.
Redemption means the unit holders of a mutual fund would get back the net asset value (NAV) per unit of the fund in cash, upon maturity or cancellation by the issuer.
The redemption of a mutual fund is new for Bangladesh's stockmarket and ICB AMCL First would be the first of its kind.
As of yesterday, the NAV per unit of ICB AMCL First, listed on the stockmarket in 2003, was Tk 24.61 on the basis of current market price and Tk 36.24 on the basis of cost price against its face value of Tk 10 each.
The total net assets of the fund stood at Tk 24.61 crore on the basis of market price and Tk 36.23 crore on the basis of cost price after considering all assets and liabilities of the fund.
The fund was managed by ICB Asset Management Company, a subsidiary of the state-run Investment Corporation of Bangladesh.
Eight other mutual funds would also be redeemed within this year in line with a regulatory directive.
Bangladesh Securities and Exchange Commission in 2007 had asked the ICB to bring its mutual funds under the regulator's mutual fund rules to control the funds under a set of rules to protect investor interests.
Upon a request from the ICB, the regulator then waived the ICB's eight mutual funds from its rules, and gave no directions or conditions about their maturity period. But the BSEC in December 2009 asked the mutual funds, which had no maturity period and passed 10 years after listing, to pull out of the market by December 2011.
Following applications from the ICB, the BSEC in September last year extended the maturity period of the mutual funds up to December 2013.