The dividend payments by Bangladesh’s mutual fund industry witnessed a significant year-on-year decline in FY2022–23, falling from Tk630 crore to Tk283 crore. This decline can be attributed to various challenges faced by the industry. According to the president of the Association of Asset Management Companies and Mutual Funds, mutual fund-invested sectors have become illiquid, limiting fund managers’ ability to rebalance portfolios.
The challenging macroeconomic environment and heavy provisioning have also weighed on profits. However, despite these challenges, mutual funds have outperformed equities and fixed deposit receipts over the last decade, offering an average return of 88% on investments from 2013 to 2023. The association aims to allocate at least 25% of mutual funds’ investments towards sectors related to the SDGs by 2030.
The BSEC emphasized the need for listing good companies and debt securities in the capital market to promote the mutual fund industry, which is currently valued at Tk16,000 crore and has room for improvement. BSEC is also working on improving governance and investor safety in asset management companies.
Source for more details:
