Sandhani launches first-ever non-dividend mutual fund

Sandhani Asset Management Limited has launched the country’s first non-dividend mutual fund named “Sandhani AML SLIC Fixed Income Fund” in the open-end mutual fund industry.

The fund aims to achieve long-term capital appreciation and will not pay dividends.

Unitholders can realize their returns by redeeming the units during the opening hours indicated by the management company.

Its other features will help investors reduce portfolio risk while enjoying comparatively higher tax benefits.

On Sunday, the tax-advantaged mutual fund was officially launched at the auditorium of the Capital Market Journalists Forum (CMJF).

The Bangladesh Securities and Exchange Commission (BSEC) had previously approved the fund’s draft prospectus.

The main target size of the fund is Tk 50 crore. The sponsor will provide Tk10 crore and the remaining Tk40 crore will be raised by selling mutual fund shares to investors at a face value of Tk10 each.

BSEC Commissioner Mizanur Rahman joined the program as the main guest. Tarique Amin Bhuiyan, Managing Director of Dhaka Stock Exchange, and Richard D` Rozario, Chairman of DSE Brokers Association of Bangladesh were present as special guests.

Mizanur Rahman said the mutual fund industry plays a major role in the capital market. But he is still absent from the country.

Over the past 10 years, mutual funds have failed to meet investor expectations, he added.

The commissioner said mutual funds underperform when the market is down and cannot provide consistent returns to investors.

Investors can withdraw their investments at any time and have the opportunity to realize capital gains, if any, he added.

Tarique Amin Bhuiyan said there was some discomfort in the market due to the technological weakness of the Dhaka Stock Exchange.

“We expect the Alternative Trading Board (ATB) to be operational by September this year. Currently, there are 81 open-end mutual funds. We will be able to bring them to the ATB by September. end of September,” he added.

Bangladesh General Insurance Company Ltd is the trustee, while Brac Bank Ltd is the custodian of the fund.

The fund’s asset manager – Sandhani Asset Management Limited – will focus on mid- and large-cap stocks, while capital protection will take priority.

Dolores W. Simon