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ICB Unit Fund

Introduction

Sponsored by the Government of Bangladesh, ICB Unit Fund was established on April 10, 1981 . Its main objective is to mobilize savings through sale of its units to small investors and invest these funds in marketable securities. The scheme provides a potential source of equity and debt to industrial and commercial concerns and thus contribute to the industrial development of the country.

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.

ICB units are securities within the meaning of Trust Act. 1882.

Issue, Transfer and Surrender of Unit Certificates

(I) Units are available in 1, 5, 10, 50, 100, 500, 1000, & 5000 denominations. The names with addresses of the holders are recorded and dividends are dispatched to them accorded and dividends are dispatched to them accordingly.

(II) Units may be transferred through prescribed transfer form duly filled in and signed by the transferor and transferee. No stamp duty is required for such transfers.

(III) Units may be encased by way of surrendering the certificates along with the prescribed surrender forms duly filled in and signed by the registered holders and no prior notice is required. The certificates are required to be surrendered at the prevailing Repurchase Price.

Registration Number

Units are issued as registered certificates. An existing Unit holder is required to mention the previous registration number on the specified column of the application form when he/she intends to buy Units again.

Price Fixation

Changes in repurchase prices of units are notified through the newspapers and price of a Unit is fixed periodically by ICB as its fund manager. Among others, valuation of the assets of the Fund are taken into consideration while fixing price of a unit.

Public Participation

The Fund is divided into units which are generally known as "ICB Unit". Each Unit bears a certain value in the assets of the Fund. The Unit holders are the owners of the fund and only they are benefited from it. Unit certificates can be purchased in single or joint name (s). At present maximum of 10,000 Units can be purchased in a single or joint name(S) at a time. Units are not sold to institutions.

Professional Counseling

Professional Counseling is rendered to the prospective & existing investors who are eager to purchase ICB Units through ICB offices and authorized Bank branches. Presently this scheme is operated by ICB Asset Management Company Limited.

Investment by Bangladeshi Citizens Abroad

The Bangladeshi citizens living abroad may invest in certificates on fulfillment of the following terms and conditions:

(I) The value of Units purchased is to be remitted through bank channel,

(II) The money invested in Units and benefits thereon are not allowed to be repatriated,

(III) The investors must mention their local and bank addresses in Bangladesh for convenience of registration of Units.

Investment by Foreigners Residing in Bangladesh

The foreign nationals residing in Bangladesh may also invest in Unit Certificates, provided they produce certificates to the effect that money being invested are their own savings and is not borrowed as loan or overdraft from any bank. These certificates are to be collected from a Gazetted Officer or a Banker not below the rank or Deputy General Manager.

Fund Management

The responsibility of managing the fund rests on ICB for which management fee @ Tk. 1.25 per Unit (net outstanding) is charged. The Corporation also discharges the responsibility of loading and unloading of securities in and from the portfolio in the interest of the Unit holders. It is also the custodian of all assets of the fund.

Dividend

The total income earned on investment/ deployment of funds, net of expenditures incurred, in a financial year is distributed among the unit holders as dividend. Dividend is normally declared at the end of July each year by the Board of Directors of ICB. Dividend Warrants are despatched soon after declaration of dividend. Since launching of the scheme in 1981 till FY 2012-13 the rates of yearly dividend declared/ paid are as under:

 

Financial Year

Rate of dividend per ICB unit Certificate(Tk.)

Financial Year

Rate of dividend per unit (Tk.)

1980-81

1981-82

1982-83

1983-84

1984-85

1985-86

1986-87

1987-88

1988-89

1989-90

1990-91

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-2000

15.00

16.00

16.25

17.00

20.00

21.00

24.0

24.00

25.00

25.00

18.00

16.70

17.00

17.40

17.50

17.00

17.50

14.00

12.00

12.00

2000-2001

2001-2002

2002-2003

2003-2004

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

2012-2013

12.00

12.30

12.30

11.50

12.00

12.00

13.00

20.00

22.00

26.00

30.00

32.00

36.50

Tax Benefits

(I) Investment in Units enjoys the benefit of Investment Allowance under Sec. 44 of Income Tax ordinance 1984.

(II) Units are treated as approved securities in accordance with the Section 2993 of the Companies Act.,1994 and Insurance Act,  1938. These are also treated as Securities as per Sec. 20 of the Trust Act, 1882.

Cumulative Investment Plan (CIP)

Under this scheme a holder instead of receiving dividend may reinvest such dividend income accrued for purchasing Unit at a concessional rate. In such case, Units are issued at Tk. 1.00 less than the opening price of the financial year.

Duplicate Dividend Warrants

Incase dividend warrants are not received in time, it should be communicated to ICB head office immediately. Duplicate warrants are issued subject to completion of required formalities and execution of an Indemnity Bond on non-judicial stamp as applicable.

Change of Address

Unit holders should immediately communicate any charge of address to the issuing offices so that no problem arises in dispatching dividends and surrendering the certificates.

Transaction Hours

Transactions are held during banking hours every day excepting Thursday and holidays. Transactions do not take place during the month of July each year due to book-closure.

Where Units are Available

Units are purchased at ICB Head Office and at its Branches at Dhaka , Chittagong , Rajshahi, Khulna , Sylhet, Barisal and Bogra. Fifty seven branches of Sonali Bank, Agrani Bank, Janata Bank, Rupali Bank Ltd., Uttara Bank Ltd., Pubali Bank Ltd., IFIC Bank Ltd., Bangladesh Krishi Bank, Prime Bank Ltd., Dhaka Bank Ltd., Bangladesh Shipla Rin Shangstha, United Commercial Bank Ltd., The City Bank Ltd., and Estern Bank Ltd. locate at important cities all over the country, are also engaged in selling and repurchasing of unit certificates.

Conclusion

ICB Unit is an open-ended Mutual Fund. Investment in Units is safe and ensure a continuous and regular source of income for the holders. Units are easily encashable. As such, investment in Unit is comparatively more attractive. By investing in this scheme an investor may derive personal benefit on the one hand and also contribute towards the economic development of the country on the other.

For further information, please contact :

Deputy General Manager
Mutual Funds Division
Investment Corporation of Bangladesh
Kashfia Plaza
35/C Nayapaltan
VIP Road
Dhaka-1000
Phone : (02)8311388
E-mail : 1) dgm_funds@icb.gov.bd
            2) icb@agni.com



 
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