CEYBANK Gilt Edge Fund (B Series): : Gilt Edge Fund

Fund Facts at a Glance
   
Fund TypeGilt Edge Fund
Investment ObjectiveCapital Preservation & Income
Invests inGovernment Securities
DividendsPaid Semi Annually
RiskLow
TaxationIncome Free of Tax
TrusteeNational Savings Bank
CustodianBank of Ceylon
Management Fees0.50% P.A.
Trustee Fees0.15% P.A.
Custodian FeesRs12,000 p.m
Front End FeeNil
Exit FeeNil
Minimum initial InvestmentRs 10,000/-
CurrencySri Lanka Rupees (LKR)
Start Date01st October 2013
CeybankGilt Edge Fund (B Series) - Interim report - 30 June 2014

Introduction

CeybankGilt Edge Fund (B Series) is an Open Ended Gilt-Edged Income Fund which invests mainly in a portfolio of Government Securities such as Treasury Bills, Treasury Bonds and Repurchase Agreements.

Objective

The primary investment objective of the Fund is to protect capital and provide a regular stream of income through bi-annual dividends.

Style

The Fund will invest in Instruments such as Government Securities (Treasury Bills and Treasury Bonds), and and Repurchase Agreements of varied maturities based on Interest rate expectations.

Risk factors

Investors should be aware that the price of Units of this Fund and the dividend paid by the Fund can go down as well as up according to the interest rate fluctuations in the market. Investments in Units differ from Bank deposits and there is no guarantee of any fixed returns.

The Fund's investments are subject to normal market risks and the ability to achieve the investment objectives will depend to a great extent on the monetary policy of the Central Bank of Sri Lanka, overall performance of the economy, and the contributory environmental factors. The Fund is also subject to various degrees of regulatory, fiscal, liquidity, inflation, interest rate and re-investment risks.

Since the investments are denominated in the local currency, the investors in other currencies would have to bear the currency risk as well.

Taxation

  • Capital gains from sale of units are exempted from taxes
  • Dividends - Dividend paid to unit holders are tax free in the hands of unit holders.
  • Withholding Tax - None

Dividend history

Fund declared tax free dividend to the unit holders as given below.

Date Dividend Per Unit(Rs.)
Aug-14 0.20
Aug-15 0.35
Feb-16 0.30
Aug-16 0.30
Feb-17 0.35

Fees and Charges

Front End Fee None
Exit Fee None
Management Fee 0.50% p.a. on the NAV of the Fund
Trustee Fees 0.15% p.a. on the NAV of the Fund
Custodian Fees Rs.12,000 per Month
Income Tax 10% of Profits

Other Information

Financial Year end 31st December
Reporting Annual and Half yearly
Valuation Daily (Cost plus Accrued Interest)
Dividend Paid Semi Annual
Trustee National Savings Bank
Custodian Bank of Ceylon