Ceybank Unit Trust : Income and Growth Fund

(Bloomberg: CEYBKUT: SL)
Fund Facts at a Glance
Fund Type Balanced Fund
Investment ObjectiveIncome & Growth of Capital
Invests inEquity & Fixed Income Securities
DividendsPaid Annually
RiskModerate
TaxationIncome Free of Tax
TrusteeNational Savings Bank
CustodianBank of Ceylon
Management Fees 1.650% P.A.
Trustee Fees 0.250% P.A.
Custodian Fees 0.085% P.A.
Front End Fee5%
Exit FeeNil
Minimum initial InvestmentRs 1,000/-
CurrencySri Lanka Rupees (LKR)
Start Date1st March 1992

Introduction

Ceybank Unit Trust – Income and Growth Fund is the first Fund floated by CAML, in 1992. Ceybank Unit Trust has grown to become the largest unit trust Fund in the Balanced Fund category in Sri Lanka with more than 5,600 unit holders.

Objective

To achieve long term capital appreciation while enhancing income by investing in a diversified portfolio with mix of listed equity securities with strong growth potential and in Government and Corporate debt.

Style

The Fund Manager adopts an active portfolio strategy which places particular emphasis upon selecting under-valued equity and attractive fixed income securities. The Fund strives to diversify the equity investments across economic sectors and individual securities and fixed income investments between gilt-edged and corporate debt. Typically the Fund invests 60% to 80% of the assets in equity and remainder in fixed income securities including cash equivalents.

Risk factors

Investing in Sri Lankan financial assets include the risk normally associated with investing in shares as well as country risk synonymous to Sri Lanka. Accordingly the unit prices can fluctuate according to the value of the underlying investments. Since the investments are denominated in the local currency, the investors in other currencies would have to bear the currency risk as well.

Special Features

  • Suitable for investors who seek income & capital growth
  • Regular dividend payments
  • Less volatility than investing in one or few shares.
  • Minimum investment is Rs 1,000/=
  • Units can be redeemed at any time at the prevailing market price
  • No Exit Fee

Taxation

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

Performance of CUT VS All Share Index (ASI) since launch

TOP TEN EQUITY HOLDINGS (Alphabetical Order) - CEYBANK UNIT TRUST

Company
SINGER SRI LANKA PLC
ASIAN HOTELS & PROPERTIES PLC
SRI LANKA TELECOM PLC
TRANS ASIA HOTELS PLC
KELANI TYRES PLC
COLOMBO LAND & DEVELOPMENT COMPANY PLC
KAHAWATTE PLANTATIONS PLC
VALLIBEL ONE PLC
LANKA IOC PLC
THE LANKA HOSPITAL CORPORATION PLC

CUT Fund Performance as at 31-10- 2017 based on NAV

Simple Returns
Period CUT ASPI
YTD -3.1% 6.2%
FY 16/17 YTD 0.6% 9.2%
12 Months -6.6% 3.2%
2 Years -13.0% -6.0%
3 Years -16.6% -9.7%
4 Years 7.7% 11.1%
5 Years 9.5% 20.0%
10 Years 180% 153%

*Percentage change in NAV as at 31 st October 2017. Adjusted for dividends.
** ASPI - Colombo Stock Exchange All Share Index


DIVERSIFICATION OF THE EQUITY PORTFOLIO

Fee Structure  
Front Load 5.00%
Management Fee (p.a.) 1.65%
Trustee & custodian Fee (p.a.) 0.335%
Exit Load Nil
   
Other Information  
Trustees National Savings Bank
Custodian Bank of Ceylon
Currency Sri Lankan Rupees (LKR)
Minimum Initial Investment LKR 1000
Minimum Additional Investment LKR 1000