Sandhani AML SLIC Fixed Income Fund starts its journey

Sandhani AML SLIC Fixed Income Fund, the first no-dividend mutual fund in the country, has started its journey.

Sandhani Asset Management Limited organized the inauguration and launching ceremony of its maiden mutual fund, a specialized open-ended fixed income focused unit fund, at the auditorium of the Capital Market Journalists' Forum (CMJF) in Dhaka on Sunday.

"Sandhani AML SLIC Fixed Income Fund" is the country’s first open-end mutual fund approved by the stock market regulator, featuring no dividend policy.

The unique features of the fund are designed to assist investors in reducing their portfolio risk as well as provide a relatively higher tax-adjusted return.

The initial target size of the fund is Tk 50 crore. Of which, Tk 10 crore is provided by the sponsor-Sandhani Life Insurance Company Limited.

The remaining Tk 40 crore will be subscribed by individual and institutional investors. The initial subscription opened on Sunday and will continue until August 30, 2022.

The offer price of the units of the Sandhani AML SLIC Fixed Income Fund is Tk 10 each.

Bangladesh General Insurance Company Limited and BRAC Bank Limited are the trustee and custodians of the Fund, respectively.

The Chief Guest of the event was Dr. Mizanur Rahman, Commissioner of the Bangladesh Securities and Exchange Commission (BSEC). Tarique Amin Bhuiyan, Managing Director of the Dhaka Stock Exchange, and Richard D' Rozario, President of the DSE Brokers Association of Bangladesh, attended the event as special guests.

Mizanur Rahman said mutual funds play a major role in the capital market. But it is still absent in our country. In the last 10 years, mutual funds have failed to meet the expectations of investors, he said.

The DSE managing director said, "There are some discomforts in the market due to the technology of the Dhaka Stock Exchange."

However, he said the Alternative Trading Board (ATB) will operational by September.

Currently, there are 81 open-ended mutual funds. "We will be able to bring these to the ATB by the end of September," said the DSE managing director. 

Among others, Mr. Mojibul Islam, Chairman of Sandhani Life Insurance; Anisuz Zaman Chowdhury, Financial Advisor of Bangladesh General Insurance; Shaheduzzaman Choudhury, Chairman of Sandhani

Asset Management, and Mir Ariful Islam, Managing Director of Sandhani Asset Management, spoke on the occasion.

On June 1 of this year, the BSEC approved the draft prospectus of the Sandhani AML SLIC Fixed Income Fund.