The Sri Lanka Fund which was launched with $ 2 million by the promoters Ceylon Guardian Investment Trust PLC and Ceylon Investment PLC in August, now stands at $2.9 million as at 30th November with a net asset value per unit of US$ 1.03.
The organisers said in a press release that the Fund has been structured to represent the growth sectors of the economy covering banking, hotels & travels, retail and infrastructure related sectors. “Hence the much needed fund value has been increased and the portfolio restructured to substantiate the case to attract new investors to the fund. The current portfolio is structured to exploit growth opportunities in the changing dynamics in Sri Lanka after the end to the 30 year conflict in the island,” it said.
It has been sanctioned by the Securities and Exchange Commission as a foreign fund operating in Sri Lanka and also registered under the Monetary Authority of Singapore (MAS) as a restricted foreign scheme.
The current policy changes of the Government with the opening up of the Capital account to both individuals and corporate is likely to see activity via cross border transactions. “Hence we envisage both foreign inflows and outflows to increase for equity investments thus prompting the attractiveness of such funds as the Sri Lanka Fund to investors.
The Fund could be marketed to resident/nonresident Sri Lankans, funds of fund investors and individual foreign investors wanting to flavor emerging markets and in turn tolerate a higher risk premium identified with such markets. The investors should have the ability to invest in US dollars open both to investors locally and internationally,” the statement added.
The Fund, the oldest country fund, is promoted by the Carson Cumberbatch Group through its investment Companies Ceylon Guardian Group (Ceylon Guardian Investment Trust PLC and Ceylon Investments PLC) the country’s largest listed equity fund with assets under management of over
$ 300 million. The funds are managed by Guardian Fund Management Limited.