VIPB Fixed Income Fund posts 26.2% return in first year

The VIPB Fixed Income Fund, an open-end mutual fund managed by VIPB Asset Management Company, has posted a strong 26.2% return in its first year of operation, setting a new performance benchmark for fixed income mutual funds in Bangladesh.

Launched on 1 September 2024, with Sandhani Life Insurance Company Limited as trustee and BRAC Bank PLC as custodian, the fund generated a 21.2% increase in net asset value (NAV) alongside a 5% dividend yield. Its NAV per unit stood at Tk12.12 at the end of FY25, while earnings per unit (EPU) was Tk0.66.

The fund manager said investors would receive a total return of 26.2% in the first year, combining capital appreciation and dividend payouts. "We started this journey last year with a clear focus on offering investors both security and consistent growth. This performance reflects that commitment," a company statement read.

The VIPB Fixed Income Fund is primarily invested in Treasury Bonds, an area where VIPB Asset Management has been a pioneer since 2012. Alongside government securities, the fund also selectively invests in high-quality corporate bonds and undervalued blue-chip equities. This hybrid strategy is designed to balance stability with long-term growth opportunities, offering investors a rare combination of income security and capital appreciation.

VIPB Asset Management, one of the country's leading asset managers, said the result demonstrates its disciplined investment approach and strong fiduciary focus. The company reaffirmed its commitment to safeguarding investor interests while expanding access to diversified, well-managed financial products in Bangladesh's capital market.