CAM FUNDS EMERGE TOP PERFORMING UNIT TRUST FUNDS FOR Q1
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. 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.
The unit trust industry has attracted investor attention given the low interest environment to surpass LKR 200 Bn in Assets under Management by the 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 June 23, 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.
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.
The CDBF reported an 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 February 12, 2020 offering investors an opportunity for capital gains with improving Sri Lanka economic fundamentals.
“The index funds offer efficient risk adjusted returns to capture fast improving profitability of the CSE,’’ noted Dulindra Fernando – Managing Director, Ceylon Asset Management.