Unit Trust industry collects Rs 1.8 billion

The member firms of the Unit Trust Association of Sri Lanka had a successful financial year in 2007/08 having launched three new closed end funds. The overall collection by member companies from 585 unit holders exceeded Rs 1.8 billion, the Association said.

The three new funds NAMAL Amana Equity Fund, NAMAL Gilt Edge Fund 1 and Ceybank Gilt Edged Fund increased the number of funds in the unit trust industry to 17. "Out of the seventeen funds thirteen funds are open end funds and four are closed end funds.

These funds can be further categorised into Balanced Funds four (4), Growth Funds four (4), Income Funds eight (8) and one (1) Index Fund", President of the Association S. Jeyavarman said. The equity funds performed considerably well out performing both stock market indices which declined during the year.

On average, the Balanced Funds appreciated 0.81% whilst the Growth Funds declined 3.2% against the All Share Price Index (ASPI) and Milanka Price Index (MPI) published by the Colombo Stock Exchange decline by 8.5% and 17.1% respectively. "These funds have provided more protection to investors than the market" the release said.

"The Income funds also has been showing better results with higher dividend payouts in line with the general increase in interest rates on government treasury securities, corporate debt instruments and bank deposits.

"The higher level of interest rates created more opportunities for income funds to improve the medium term returns whist reducing the down turn risk Jeyavarman," said.

The Unit Trust Association consists five licensed fund management companies namely Ceylon Asset Management Co. Ltd, CT Fund Management, Eagle NDB Fund Management Co. Ltd, National Asset Management Ltd, and the Unit Trust Management Company.