Ekush Stable Return Fund

Objective of the Fund

• The primary objective of the fund is to preserve capital while generating steady, tax-efficient returns through a diversified portfolio of fixed income securities.

• The fund seeks to optimize income while actively managing interest rate risk, ensuring sustainable long-term value creation for investors.

Investment Strategy

• The fund employs an active fixed income strategy with a focus on duration management.

• The investment team dynamically adjusts the portfolio’s modified duration based on macroeconomic indicators, interest rate outlook, and yield curve positioning.

• Key strategy components: Active allocation across tenor buckets with a focus on optimizing risk-adjusted returns within a high-quality, Investment Grade universe Robust risk management framework addressing credit quality, duration, and liquidity constraints While the fund does not invest in equities, it may selectively participate in IPOs as a means to enhance overall returns.

Suitable for

• Risk-averse investors seeking steady income with low volatility Tax-sensitive investors preferring capital gains over interest income Institutions and HNWIs focused on capital preservation and high credit quality Medium to long-term investors targeting predictable returns Diversified portfolios needing core fixed income exposure Tax-efficient solutions for banks, NBFIs, insurers, and merchant banks

How ESRF is Tax Efficient

• In Bangladesh, individuals are taxed up to 25% on interest income. ESRF invests in fixed income securities and passes the interest income to investors in the form of capital gains. Since capital gains up to BDT 50 lakh are tax-exempt annually, and gains above this threshold are taxed at only 15% for individuals, ESRF offers a significantly more tax-efficient alternative to direct fixed income investments.

• Institutional investors—such as banks, insurance companies, NBFI, and merchant banks—can also gain indirect exposure to fixed income through ESRF. This allows them to benefit from a preferential tax rate of 15%, instead of the prevailing corporate tax rates ranging from 37.5% to 42.5%.