Ceylon Asset Management and Deutsche Bank joined to introduce the Ceylon Financial Sector Fund. This fund aims to capture returns from the Top 10 Banking, Finance and Insurance sector (BFI) companies listed in the Colombo Stock Exchange (CSE).
It is the first ever financial sector fund, structured as an open-ended, equity fund that lets investors invest and exit at any time.
The Fund will distribute tax-free income from profits on an annual basis.
It captures over 84 percent of the BFI sector market capitalization on the CSE.
The Units are offered at the IPO price of Rs 10 with a minimum investment of Rs 10,000. Deutsche Bank will be the Trustee and Custodian of the fund.
The Ceylon Financial Sector Fund is licensed by the Securities and Exchange Commission of Sri Lanka.
Ceylon Asset Management has a 11-year track record in index fund management to offer stock market returns without speculative and trading risks.
CAM also manages two other index funds namely Ceylon Index Fund and Ceylon Tourism Fund as well as a fixed income fund i.e. Ceylon Income Fund. The declining interest rates in Sri Lanka, the cash rich position of Banks and the fast growing economy with many projects in the pipeline have made the BFI sector, one of the most lucrative sectors in the country.
The BFI sector with a history of nearly 150 years has become a key contributor to the nation's economy with the presence of several International Banks in Colombo. There is consensus developing to position Sri Lanka as the next Financial Hub for South Asia, performing key services in trading regional currencies and private banking in foreign currencies.
The Ceylon Financial Sector Fund invests in ten selected companies in the BFI Sector.
These companies are
Commercial Bank of Ceylon PLC, Hatton National Bank PLC, Lanka Orix Leasing Company PLC (LOLC), DFCC PLC, Sampath Bank PLC, National Development Bank PLC, Nations Trust Bank PLC, Central Finance Company PLC, Seylan Bank PLC and AVIVA NDB Insurance PLC.
These 10 companies are chosen on the basis of Size, Liquidity, Corporate Governance and risk mitigation strategies.
source - www.dailynews.lk
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