The VIPB Fixed Income Fund has achieved a return of 26.2 percent within the first year of its operations.

Officials from VIPB Asset Management Company indicated that a significant portion of this return was derived from Treasury bonds.

For the period spanning from September of last year to June of this year, the fund issued a cash dividend of 5.0 percent. Following this distribution, the net asset value (NAV) reached Tk 12.12 per unit, reflecting a 21.2 percent increase from the original face value of Tk 10 per unit.

Consequently, an investor who acquired a unit at Tk 10 can now redeem it for Tk 12.12.

Approximately 60 percent of the fund’s investments were allocated to Treasury bonds, 32 percent to undervalued blue-chip stocks, and the remaining 8 percent to corporate bonds.

After the fund’s inception, the yields on Treasury bonds ranged from 12.5 to 13 percent. Recently, these yields have decreased to about 10.50 percent.

As a result, the fund’s return from fixed-income securities increased to 22 percent, as the market value of these bonds rose when yields fell.

“This return was crucial to the fund’s remarkable performance over the past year,” stated Md Shahidul Islam, the CEO of VIPB Asset Management Company.

The VIPB Fixed Income Fund also realized substantial returns from blue-chip stocks, which saw growth following the previous government’s decline.

The CEO emphasized that the fund’s success underscores the asset manager’s disciplined investment approach and unwavering commitment to preserving and enhancing investor capital.

“The company is fully dedicated to its fiduciary responsibilities,” Mr. Islam remarked.

The initial capital of the Fixed Income Fund was Tk 100 million, which has now increased to approximately Tk 220 million, as reported by the asset manager.