Wednesday, July 27, 2011

Namal launches IPO Fund

National Asset Management Ltd (NAMAL), the pioneer Unit Trust Management Company in Sri Lanka announced the launch of the NAMAL IPO Fund.

The Fund has been launched to capture potential upside on mispriced IPOs (initial public offerings) as well as to benefit from the preferential allocation of 10% of the offered shares to the Unit Trust Investor Category.

The fund will invest at the IPO offering stage and in post-IPO securities for a period of one year. The Fund is targeted at retail investors with a minimum investment of Rs 10,000 and will enable retail investors to obtain a meaningful allocation without the hassle of applying for each individual IPO and obtaining bank guarantees.

NAMAL Executive Director Avanka Herat said "Retail investors have faced a significant challenge in evaluating IPOs in recent times. With many IPOs in the pipeline in the next few years, Investors in the Fund will benefit from the professional selection of IPO securities and portfolio management by NAMAL's experienced fund management team.

Unique features of the NAMAL IPO Fund are that it would invest in the post-IPO stage and in other equities in the market if the managers think that IPOs are not properly valued thus ensuring equity exposure for investors.

The NAMAL IPO Fund will not charge an exit fee to investors even if they redeem within a short period of the initial investment. The NAMAL IPO Fund is licensed by the Securities & Exchange Commission of Sri Lanka as an open-ended Unit Trust..

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