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
RiskMedium
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 country with net assets over Rs.4,700 million as at 31st March 2013 with more than 5,400 unit holders.

Objective

The Fund seeks to provide high total return with both capital appreciation and current income. The funds are invested in equity securities listed in the Colombo Stock Exchange and Sri Lanka Rupee denominated fixed income securities.

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

Dividend history

Fund performance as at 31st March 2013

  Return % ASI** Movement
03 Months -2.06% 2.23%
06 Months -10.00% -3.39%
12 Months -3.48% 4.87%
24 Months -29.63% -20.48%
36 Months 22.36% 42.50%

* Percentage change in the bid price as at 31-March-2013. Adjusted for dividends.
** ASI - Colombo Stock Exchange All Share Index


Top 10 equity investments as at 31st March 2013

Company
ASIAN HOTELS & PROPERTIES PLC
SRI LANKA TELECOM PLC
SINGER SRI LANKA PLC
LANKA IOC PLC
TRANS ASIA HOTELS PLC
ROYAL CERAMICS LANKA PLC
KAHAWATTE PLANTATIONS PLC
WATAWALA PLANTATIONS PLC
KELANI VALLEY PLANTATIONS PLC
FINLAYS COLOMBO PLC

* ASI - Colombo Stock Exchange All Share Index

Diversification of the Equity Portfolio March 2013