Subscription of 'Sandhani AML SLIC Fixed Income Fund' begins today
Open-end mutual fund's initial size Tk 500m
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Subscription of 'Sandhani AML SLIC Fixed Income Fund' --- an open-end mutual fund --- will commence today (Sunday).
The initial size of the fund is Tk 500 million. Of them, the sponsor of the fund --- Sandhani Life Insurance will provide Tk 100 million and the remaining Tk 400 million will be collected through sales of units of the fund.
The offer price of the units of the Sandhani AML SLIC Fixed Income Fund is Tk 10 each.
Subscription of 'Sandhani AML SLIC Fixed Income Fund' will continue until August 30, Md Tanvir Islam, Chief Investment Officer of Sandhani Asset Management Ltd told The Financial Express (FE).
The Bangladesh Securities and Exchange Commission (BSEC) approved the draft prospectus of Sandhani AML SLIC Fixed Income Fund on June 1 of this year.
Sandhani Asset Management Ltd, the asset manager of the fund, is going to arrange inaugural of Sandhani Asset Management Ltd and launching of 'Sandhani AML SLIC Fixed Income Fund', today (Sunday) at the auditorium of Capital Market Journalists' Forum (CMJF) in the capital, officials said.
Dr Mizanur Rahman, a commissioner of the BSEC, is expected to remain present as the chief guest at the inaugural ceremony while Tarique Amin Bhuiyan, managing director of the Dhaka Stock Exchange, and Richard D' Rozario, president of DSE Brokers Association of Bangladesh (DBA), will attend as special guests.
Mir Ariful Islam, managing director and CEO of the Sandhani Asset Management Ltd, and high officials of the company, will also be present, among others.
Bangladesh General Insurance Company Ltd is working as trustee while Brac Bank Ltd is the custodian of the mutual fund.
Open-end mutual funds are not listed with the stock market but one can buy them from a fund managers' office on the basis of its net asset value. Similarly, investors can sell-off fund units at any time at prices based on its current net asset value.
This fixed-income mutual fund is more secure 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 provide any dividend for the unit holders rather they will give the option to retain their gain or loss on their capital. Because, based on the income tax rule, they don’t need to pay tax on their capital gain where they have to pay it for their dividend income in other mutual funds.
Sandhani Asset Management Ltd is a subsidiary company of Sandhani Life Insurance Company Ltd (SLICL), a listed company with DSE and Chittagong Stock Exchange.
Each share of the Sandhani Life Insurance, which was listed with the DSE in 1996, closed at Tk 28.80 on Thursday.