Nearly 20 per cent annual returns and fresh cash dividends have capped a strong year for two mutual funds managed by VIPB Asset Management Company Limited, highlighting the resilience of value-driven investment strategies despite a challenging capital market.
The payouts were approved by the Board of Trustees on 27 July after reviewing the draft audited financial statements, according to a company statement.
Investors in the VIPB SEBL 1st Unit Fund will receive a 5 per cent cash dividend, while those in the VIPB NLI 1st Unit Fund will receive 4 per cent for the financial year ended 30 June 2026.
The SEBL fund generated a total return of 19.3 per cent during the year. Of that, 14.3 per cent came from growth in its net asset value (NAV), which reflects the per-unit value of the fund’s investments, while the remaining 5 per cent was distributed as cash dividends.
Returns were slightly higher for the NLI fund, which delivered 19.8 per cent. Investors benefited from a 15.8 per cent increase in NAV in addition to the 4 per cent cash payout.
Both funds are managed by VIPB Asset Management. Investment Corporation of Bangladesh serves as trustee and custodian, overseeing the funds and safeguarding investors’ assets. Southeast Bank PLC and National Life Insurance PLC are the respective sponsors.
The two funds also mark an important milestone in the evolution of Bangladesh’s mutual fund industry.
The SEBL fund began in 2011 as the Southeast Bank 1st Mutual Fund under a closed-end structure, where investors typically remain invested until the fund reaches the end of its tenure.
After completing that tenure, unitholders voted overwhelmingly to convert it into an open-ended fund in 2021. The proposal secured support from 99.23 per cent of participating investors.
An open-ended fund allows investors to buy new units or redeem existing ones directly from the fund at the prevailing NAV instead of waiting until maturity.
The NLI fund followed the same path. Launched in 2012 as the NLI 1st Mutual Fund, it was converted into an open-ended fund in 2022 after winning approval from 99.93 per cent of participating unitholders.
According to VIPB, the two funds have introduced several industry firsts since their conversion.
Those include bringing government treasury securities into mutual fund portfolios and adopting concentrated portfolios that focus investments on a select group of high-conviction assets rather than spreading them across a large number of companies.
The strategy is designed to maximise returns while maintaining disciplined risk management.
The portfolios are invested mainly in undervalued blue-chip shares, government treasury bonds and highly rated corporate bonds, seeking to combine long-term capital growth with stable income.
VIPB said its investment philosophy remains centred on value investing, rigorous risk management and strong corporate governance.
The asset manager added that protecting investors’ interests while delivering sustainable long-term wealth creation continues to guide the management of both funds.
