Orient Wealth, will operate three funds: Orient gilt-edge; Orient Corporate debt and Orient equity fund tapping into people’s appetite for diverse investment schemes.
The funds will come into operation from August 6, with Deutsche Bank AG Colombo acting as trustee and custodian.
Orient Wealth’s chief executive S Jeyavarman said they would use commercial lender Seylan Bank’s and their parent company the Janashakthi Group’s extensive branch network to market their products islandwide.
“Our products are aimed at long-term investments and also to remind people of the need to save for the future,” said Jeyavarman, a mutual fund industry veteran.
The Orient Retirement Savings plan offers three options. Investors can choose to split their monies in 40 percent equity, and 30 percent each in debt and gilts. The next option could be invest in 20 percent equity and 40 percent each in debt and gilts. The third option is to invest 50 percent each in debt and gilts.
The child education and the general investment plans gives customers a choice of going up to 100 percent in either equity, debt or gilt-edge funds.
Sri Lanka’s stock market is down by almost 19 percent since January, largely due to lack of credit while interest rates also remain high.
But Jeyavarman thinks equity investments, though risky, can also give a bit of edge on investment plans.
“We believe in buying when share prices go down, like in the current context and sell when it goes up. There are always stocks that give long-term value.”
Orient Wealth is the 13th to join the local unit trust industry which manages around 21 billion rupees worth of funds.
Orient Wealth is a fully-owned subsidiary of Orient Capital Limited, which comes under the Janashakthi group of companies. The Janashakthi group has investments ranging from insurance to money broking.