Meghna Life Insurance Company Ltd has decided to sponsor Sandhani AML-Meghna Life Income Fund upon completing formalities and getting approval from the Bangladesh Securities and Exchange Commission (BSEC) last week.
The size of the open-end fund will be Tk20 crore, and sponsors' contributions will be Tk5 crore.
The tentative investment and the submission date of the fund to the commission is 15 October.
About 70% income of the open-end mutual fund will be distributed to its unitholders as a dividend under the dividend policy.
The proposed trustee and the custodian of the fund are Bangladesh General Insurance Company Limited and BRAC Bank, respectively.
Officials of the company said they would take approval from the shareholders in the upcoming general meeting. After getting approval from the shareholders, the company would take the next decision, they added.
On the other hand, the company has declared a 30% dividend (15% cash and 15% stock) for its shareholders for the year 2020.
To secure approval for the declared dividend, an audited report, and other matters, the company will hold an annual general meeting (AGM) on 27 October this year. The record date for the AGM will be 6 October.
The company will use the amount of declared stock dividend to invest in fixed deposit, bond and stock market to enhance future return on investment and for business expansion.
In the January-March period of this year, the renewal premium of the company stood at Tk15.84 crore, which was Tk25.27 crore in the same period a year ago.
During the first quarter of this year, the net premium of the company was Tk26.68 crore, which was 5.77% less compared to that recorded in the same period last year.
The company started operations on 5 May 1996 and was listed on the stock exchanges in 2005.
The main object of the company is to provide maximum financial security to a person and families by giving modern Insurance facilities.
Sponsors and directors jointly hold 30.41% shares, institute 25.48%, and General investors hold 44.11% shares in the company.
The last share price of the company at the DSE was Tk117.90 on Thursday.