The government security space and other instruments provide a great opportunity for such investors, Ceylon Guardian Investment Trust Chief Executive Officer Ruvini Fernando said.
“The response has been very positive where Guardian Acuity Money Market Gilt Fund with the recent launch, where over 100 investors entered the fund thus far with the fund growing to Rs. 700 million for our new investment instruments,’ Fernando told the Daily News business.
She said investing in a professionally managed fund such as the Guardian Acuity Money Market and Gilt Fund will allow investors to access to a highly liquid and tax free return. The fund has provided an annualized net of tax return of 6.21 percent.
The fund is the latest addition to the two unit trusts that are already in place being the Guardian Acuity Equity Fund which has provided a return of 72 percent for investors since February 2012 and Guardian Acuity Fixed Income Fund which has provided an annualized return of 11.60percent, she said.
“Both these funds have outperformed their respective benchmarks proving that active management can help derive better returns,”she said
Fernando said the new policies have resulted in optimism in the capital markets.There is a lot of space for the Sri Lankan capital markets to develop and a strong market oriented policy framework will help reach these development goals faster.
“With strong economic growth expected going forward I feel capital markets will be one of the main beneficiaries,”she said.
“There is return potential in the medium to long term for investors by entering the capital markets. There is currently uncertainty as we approach elections but we see this as an opportunity to enter the market, Fernando said.
One of the biggest issues faced by the Unit Trust industry is the lack of awareness of the benefits that unit trusts bring to investors, she said.
“The Colombo Stock Exchange (CSE) and Securities and Exchange Commission (SEC) has an ongoing campaign to increase awareness but still awareness levels are very low, she said.
Guardian Acuity Asset Management Limited was formed in 2012 for the purpose of bringing together the expertise of the two joint venture partners, Ceylon Guardian Investment Trust and Acuity Partners
The company focuses on increasing awareness levels to attract investors and increase the fund sizes.
Courtesy: Daily News 18 May 2015