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Thursday, June 23, 2011

Ceylon IPO Fund to boost retailers

Ceylon Asset Management recently launched Sri Lanka’s first ever IPO Fund to boost retail investors.

Ceylon Asset Management said that Ceylon IPO Fund aims to target the large number of IPOs and the regulations of the Securities and Exchange Commission (SEC) that have reserved 10% of each IPO for unit trusts.

Recovering from a post war era, several large corporates in the country such as Browns Investments, Vallibel One, Access Engineering, Sri Lankan Catering, are yet to reach Sri Lanka’s retail investors.

However, Ceylon Asset Management Managing Director Dulidra Fernando, said that the Ceylon IPO Fund would invest in selected IPOs and would not participate in the secondary market except to dispose shares allotted from IPOs. The earnings are tax free and the all excess cash will be invested in short-term fixed income instruments that earn around 7% per annum. The minimum level of investment is Rs. 1,000 but can go up to Rs.10 million. Cash can be withdrawn from the fund at any time.

source - www.dailymirror.lk