Electronic income

Subscription to the ‘Sandhani AML SLIC Fixed Income Fund’ starts today

Initial Open-End Mutual Fund Size Tk 500 million

| Updated:
July 17, 2022 1:15:21 p.m.

Subscription to the “Sandhani AML SLIC Fixed Income Fund” — an open-end mutual fund — will begin today (Sunday).

The initial size of the fund is Tk 500 million. Among them, the fund sponsor — Sandhani Life Insurance will provide Tk 100 million and the remaining Tk 400 million will be raised through the sale of fund units.

The offering price for Sandhani AML SLIC Fixed Income Fund units is Tk 10 each.

Subscription to the “Sandhani AML SLIC Fixed Income Fund” will continue until August 30, Md Tanvir Islam, Chief Investment Officer of Sandhani Asset Management Ltd told Financial Express (FE).

The Bangladesh Securities and Exchange Commission (BSEC) approved the draft prospectus of Sandhani AML SLIC Fixed Income Fund on June 1 this year.

Sandhani Asset Management Ltd, the fund’s asset manager, will hold the grand opening of Sandhani Asset Management Ltd and the launch of the ‘Sandhani AML SLIC Fixed Income Fund’, today (Sunday) at Capital Market Journalists’ auditorium Forum (CMJF) in the capital, officials said.

Dr. Mizanur Rahman, Commissioner of BSEC, is expected to remain present as a guest of honor at the inaugural ceremony while Tarique Amin Bhuiyan, Managing Director of Dhaka Stock Exchange, and Richard D’Rozario, Chairman of DSE Brokers Association of Bangladesh (DBA), will attend as special guests.

Mir Ariful Islam, Managing Director and CEO of Sandhani Asset Management Ltd, and senior company officials will also be present, among others.

Bangladesh General Insurance Company Ltd works as the trustee while Brac Bank Ltd is the custodian of the mutual fund.

Open UCITS are not listed on a stock exchange but can be purchased from a management office on the basis of their net asset value. Likewise, the investor can sell fund units at any time at prices based on his current net asset value.

This fixed income mutual fund is safer than traditional equity-based mutual funds.

The fund’s asset manager — Sandhani Asset Management — will take exposure to government securities and investment-grade bonds, which will create a better return as a fixed-income mutual fund, officials said. .

The fund manager will not pay any dividends to unitholders, but rather give them the opportunity to retain their capital gain or loss. Because under the income tax rule, they don’t have to pay tax on their capital gain while they have to pay it on their dividend income in other mutual funds.

Sandhani Asset Management Ltd is a subsidiary of Sandhani Life Insurance Company Ltd (SLICL), a company listed on the DSE and the Chittagong Stock Exchange.

Each share of Sandhani Life Insurance, which was listed on the DSE in 1996, closed at 28.80 Tk on Thursday.

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