Monday, August 29, 2011

ETF investments in 93 listed corporates


The Employers Trust Fund, has invested in equities of 93 listed corporates, as at last Friday.

The nett profit of Rs. 14.5 billion in market transactions for the year ended 31 December, 2010 was apportioned among 9.7 million members at 12.5% interest in sharp contrast to banks providing interest rates of between 6-7%, ETF’s Deputy General Manager (Investments) Ms Rukma Gnanasekera told Daily News Business yesterday.

The return on the market portfolio was 11.3%, she said.

Over 65,000 employers contributed over Rs. 950 million through the 3% monthly contributions. The majority on the investments in Debentures which were A plus rated which were Banks, Finance and Insurance sectors. We have invested Rs. 250 million in Commercial Bank shares, Rs. 200 million in DGCC Bank, Rs. 100 million in Sampath Bank and we have a Rs. 15 million worth stake remaining in Singer, she said. The Fund has a total portfolio worth Rs. 6.8 billion ( Rs. 6,886,057.86) comprising Rs. 35.5 million (Rs.35,518,000.39) in Portfolio I of quoted ordinary shares, Rs. 6.3 million (Rs. 6,335,411.08) under Portfolio II of ordinary shares Rs. 485 million (Rs. 485,834,000.54) in portfolio I of unquoted shares and Rs. 29.2 million ( Rs. 29,293,000.85) under Portfolio II in shares of Delisted and companies under liquidation.

Banking, Finance and Insurance sectors have accounted was highest at Rs. 2,764,556.56 which is 43.64% of the total portfolio. She also said that the decision of the investments were based on the recommendations made by a Equity Committee comprising a four member panel of Fund Managers who recommend in which equities to invest after scientific studies daily. The recommendations are implemented by a four-member committee comprising Senior Deputy Secretary to the Treasury P.A. Abeysekera, ETF Additional General Manager Mangala Herat Gunaratne, Deputy General Manager (Internal Audit) K.S. Weliwita and herself.

She assured that the investment, though risk prone, were evaluated scientifically aimed at giving the members the best returns on the investments.

The Board of Directors of the Fund had its diversity comprising representatives of the Treasury, Employers Federation, Trade Ministry, two Chartered Accountants who are nominated by President Mahinda Rajapaksa in his capacity as Finance Minister, a representative from the employees.

Among the benefits that the ETF provides its members are: a death benefit scheme (Rs. 50,000) financial assistance for heart surgery (Rs. 150,000), financial assistance for kidney transplants ( Rs. 150,000), Permanent disability ( Rs. 200,000) reimbursement of the cost of contact lenses-Rs. 18,000, Hospitalisation allowance of Rs. 25,000 each per annum, 10,000 scholarships to GCE Advanced Level Students at the rate of Rs. 12,000 each for higher studies, housing loans at concessionary rates in three slabs, concessions and allowances for the disabled and those who have been terminated from employment and scholarships for 5000 Year 5 students of Rs. 15,000 each.
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