Sandhani Life Finance, BGIC sign deal for Tk 25 crore Shariah fund

Sandhani Life Finance Limited (SLFL), a merchant bank in Bangladesh, has entered into a trust deed with Bangladesh General Insurance Company PLC (BGIC), a publicly listed general insurance company, to raise Tk 25 crore through a Shariah-compliant mutual fund titled "Sandhani AML SLFL Shariah Fund".

Muhammad Nazrul Islam, managing director and CEO of SLFL, and Ahmed Saifuddin Chowdhury, managing director and CEO of BGIC, signed the deed at the latter's head office in Dhaka recently, according to a press release.

With an initial target of Tk 25 crore, the fund will be managed by Sandhani Asset Management Limited (Sandhani AML). This marks the second open-ended mutual fund by Sandhani AML and its first Shariah-compliant offering.

The fund is designed to provide superior risk-adjusted returns to investors seeking Shariah-based investment opportunities in the capital market.

The asset management company aims to ensure professional and active fund management, while making the product widely accessible through both traditional and digital distribution channels.

SLFL is acting as the sponsor of the fund, with BGIC serving as the trustee. The trust deed has received formal approval from the Bangladesh Securities and Exchange Commission.

Previously, in 2022, Sandhani AML launched the country's first no-dividend mutual fund – Sandhani AML SLIC Fixed Income Fund – which now has an Asset Under Management (AUM) exceeding Tk 100 crore.

Col (retd) Wais Huda, chairman of SLFL, Anisuz Zaman Chowdhury, financial consultant of BGIC, Mahmudul Bari, adviser of Sandhani Group, Md Shaheduzzaman Choudhury, chairman of Sandhani AML, Mir Ariful Islam, managing director and CEO; and Md Tanvir Islam, chief investment officer and senior compliance officer; were also present; along with senior officials from both organisations, were also present.