Meghna Life declares 30% dividend

Meghna Life Insurance Company has declared a 30 per cent dividend – 15 per cent cash and 15 per cent stock - for its shareholders for the year ending on December 31, 2020.

The listed insurance company briefed the Dhaka Stock Exchange (DSE) about the dividend on Thursday, saying that the figure was set recently at the company’s board meeting.

To get the dividend approved, the company will hold an annual general meeting (AGM) on October 27, while the record date was set on October 6.

As per the disclosure, Meghna Life will use the declared stock dividend to invest in fixed deposit, bond and stock market to enhance the future return on investment and for business expansion. The insurance company distributes dividend regularly. The share price of the company increased by Tk 4.4 or 3.88 per cent and closed at Tk 117.90 at the Dhaka bourse on Thursday. The price movement was between Tk 53.2 and Tk 126 throughout last year.

Board approves mutual fund

In a separate disclosure made to the DSE, the Meghna Life said that it decided to form a Tk 20 crore mutual fund - Sandhani AML-Meghna Life Income Fund – subject to approval from the regulator.

In the open-end fund, the company will invest Tk 5 crore as the sponsor. It will provide 70 per cent of its total income for the unit holders as dividend.

The proposed trustee of the fund is Bangladesh General Insurance Company and the proposed custodian is BRAC Bank.

Currently, there are 37 mutual funds at the DSE.