National Asset Management Limited (NAMAL) is the manager of the National Equity Fund (NEF), Sri Lanka’s first unit trust. “NAMAL is five years old on the 16th of December 1996. As a birthday present, the Securities and Exchange Commission have approved the company’s application to manage two more unit trusts, the NAMAL Income Fund and the NAMAL High Growth Fund”, said the Chairman of NAMAL, Deshamanya C A Coorey.
There is much cause for celebration for NEF because it has consistently performed better than the industry average with higher dividends (Rs 5.25 per unit, tax free) than any other unit trust. It is the only unit trust fund that stands in excess of Rs 1000 million with over 17,000 unit holders. “The key to this success has been an in-depth understanding of markets in Sri Lanka coupled with extensive research. This has enabled the fund to make investments and to diversify its investment portfolio in keeping with changing conditions”, said Coorey.
NEF is a moderate risk fund which strikes an ideal balance between equity and fixed income securities, for investors seeking both income and growth. The two new unit trusts will broaden the range of investment opportunities in terms of risk involved. The NAMAL Income Fund will invest solely in low-risk, fixed income securities like treasury bills, debentures and company bonds. It is ideal for those who want a steady income from their investments and carries less risk than the NEF. The NAMAL High Growth fund will appeal to the more daring investor. The risk is greater than with NEF and 90% of the fund will be invested in the stock market.
The NAMAL Income Fund is set to open in the first quarter and the NAMAL High Growth Fund in the second quarter of 1997. The minimum investment required by the former is Rs 10,000 and that required by the latter is Rs 5,000. A single unit costs Rs10.