CAM Funds Emerge Top Performing Unit Trust Funds in Two Sectors for 2021 Q1

Wednesday, 30 June 2021 03:59

Ceylon Asset Management Chairman Mr. Malaka Bandara and Managing Director Mr. Dulindra Fernando

Businesscafe - The Ceylon Money Market Fund managed by Ceylon Asset Management (CAM) emerged as the top performing Money Market Fund for 2021 Q1 reporting an annualized return of 8.23% p.a.

Meanwhile, Ceylon Financial Sector Fund emerged as the best performing stock market fund for 2021 Q1 reporting a return of 21.08% as at 31st March 2021 as per the data published by the Unit Trust Association of Sri Lanka.


Furthermore, Ceylon Dollar Bond Fund, the only Sovereign Bond Unit Trust Fund in Sri Lanka reported a year to date (YTD) dollar return of 10.59% as at 31st March 2021.

Ceylon Asset Management has engaged in asset management for over two decades and currently manages eight Unit Trust Funds that involve both stock market and fixed income categories including the above funds.


The funds are licensed by the Securities and Exchange Commission of Sri Lanka (SEC) and Hatton National Bank (HNB) acts as the Trustee & Custodian for Rupee denominated funds.

Ceylon Money Market Fund is a fixed income fund that invests in short term fixed income instruments of investment grade companies that offer attractive interest rates. Investors are allowed to withdraw their investments at any time with interest that is accrued on a daily basis.


We are pleased to note that the unit trust industry has attracted investor attention given the low interest environment to surpass LKR200Bn in Assets under Management by end of March 2021, the highest in its history.


Ceylon Money Market Fund has maintained its top performance in the money market category until May 2021, as per the last reporting date of the industry.


This fund continues to offer an attractive yield for investors to reap higher benefits reporting a return of 8.10% p.a. as at 23rd June 2021.

CAM pioneered Index Management in Sri Lanka including two sectors.


The Ceylon Financial Sector Fund (CFSF) is an index fund that invests in top 7 banks & 3 finance companies listed in the Colombo Stock Exchange (CSE).


The fund tracks over 55% of the total market capitalization of the banks & diversified finance companies in Sri Lanka and this sector is one of the most lucrative sectors in the country.


Investors are allowed to invest and exit at any time.


We believe investors have an opportunity to secure capital gains through the financial sector fund due to prevailing valuations of the industry.

 

CAM also manages the only dollar denominated Sovereign Bond Fund in Sri Lanka formally known as the Ceylon Dollar Bond Fund (CDBF) offering investors a unique opportunity to invest in Sri Lanka International Sovereign Bonds (SLISBs) traded on overseas exchanges.


This fund is also licensed by the SEC and Deutsche Bank AG acts as the Trustee and Custodian of the fund.


The CDBF reported a YTD return of 10.59% in USD for 2021 Q1.


It is currently trading at a deeply discounted unit buying price of US $ 0.8647 on 15th June 2021 in comparison to the pre pandemic unit buying price of $ 1.0922 on 12th February 2020 (source; Ceylon Asset Management) offering investors an opportunity for capital gains with improving Sri Lanka economic fundamentals.


Ceylon Asset Management is an associate company of Sri Lanka Insurance Corporation with a partnership of over 10 years.


‘’The index funds offer efficient risk adjusted returns to capture fast improving profitability of the CSE.’’ noted Dulindra Fernando - Managing Director, Ceylon Asset Management


You may reach out on + 94 71 7030000/ +94 770607733 or email – This email address is being protected from spambots. You need JavaScript enabled to view it. to obtain more details of the funds managed by Ceylon Asset Management


Past performance is not an indicator of future performance, investors are advised to read and understand the contents of the explanatory memorandum on www.ceylonam.com

Last modified on Wednesday, 30 June 2021 04:25