Sri Lanka's Guardian Acuity Asset Management Launches Two New Unit Trusts

25th January 2012, www.ft.lk

The country’s unit trust industry, considered to having high potential and viewed as catalyst for widespread capital market, will see the launch of two new additions with its promoters and managers promising a choice of good, reliable and flexible returns via solid investments.

The SEC approved two unit trusts are branded MoneyMax and MoneyMaker. They are promoted by Guardian Acuity Asset Management Ltd., a joint venture fund management company formed by Ceylon Guardian Investment Trust Plc of Carson Cumberbatch Group., and Acuity Partners Ltd., the investment banking arm of HNB and DFCC. The new investment opportunities comprise a fixed income fund and an equity growth fund.


MoneyMax has several options depending on the requirement of the investor. MoneyMax Dhaksha is aimed at those wanting solid returns to finance children’s education, MoneyMax Dheerga for senior citizens or those saving for retirement and MoneyMax Pragathi for investors wanting money to start up a business.
The promoters said the three products were launched following research, which revealed that people were saving or investing for retirement, finance children’s education or to start up a business.

These savings plan combine a mix of equity and fixed income investments in appropriate mixes depending on the time horizon preferred by each investor. For the more sophisticated investor Guardian Acuity Asset Management Ltd. (GAAM) has on offer an investment plan named MoneyMaker which gives the choice to decide his or her own risk level with a suitable combination of equity and fixed income investments.
Further strengthening the concept of long-term investing, the savings plan allow for periodic topping up of investments on a regular basis. This, the promoters said, encourages the savings habit among investors
Flexibility to switch between funds at no extra costs allows investors the freedom to vary their equity and fixed income investment proportions to suit their risk taking ability as well as volatility in stock prices and interest rates.

GAAM’s entry is into a seemingly crowded market funds wise as there are around 24 unit trust funds. However, despite being in existence for two decades, the unit trust industry hasn’t penetrated or marketed sufficiently. The country has only around 27,000 unit trust holders whilst the fund base is Rs. 23 billion, less than 1% of the total bank deposit base.

HNB Managing Director and CEO Rajendra Theagarajah said that GAAM has taken cognisance of some of the challenges as well as opportunities. “By making the minimum investment at Rs. 1,000 with no entry fee, we have addressed the affordability aspect,” he said.

With regard to marketing it to a wider investor base, Acuity Partners Group CEO Ray Abeywardena said initially 65 branches of the HNB covering all provinces would aggressively promote the new funds in addition to GAAM’s own team of personnel.

Ceylon Guardian Investment Director Chandima Gunwardena said the portfolio of opportunities from GAAM were market structured mechanisms backed by sound and proven management expertise so as to offer good returns for discerning medium to long-term investors.
The promoters said that unit trusts were a good medium for the saving public to tap the opportunities arising from the equities market. It was revealed that over a 10-year period ended in 2011, investing in equities had provided greater returns as opposed to fixed income option though the former had demonstrated some degree of volatility.

Other advantages of investing in unit trusts are benefits of professional fund management input, diversification, liquidity and tax exemptions.
Ceylon Guardian Group has an investment portfolio of Rs. 30 billion comprising equity and private equity investments. Acuity Group provides a suite of investment banking products and services, including stock broking, primary dealership, corporate finance, venture capital and financial advisory services with an asset base of nearly Rs. 6 billion.

Related Info :

• Sri Lanka Acuity Partners & Ceylon Guardian Investment Trust to Set up a Firm to Run Mutual Funds

• How to Invest in Unit Trusts - Introduction to Sri Lankan Unit Trust Industry

HNB Drops Private Placement in Sri Lanka's Biggest Rights Issue. Funds to be Raised Reduced to Rs 14.28bn to Benefit Existing Shareholders

11th May 2011, www.lankabusinessonline.com

Sri Lanka's Hatton National Bank has changed plans to raise fresh capital by dropping a private placement and increasing a rights issue for existing shareholders, a stock exchange filing said.

The amount of funds to be raised, to strengthen its capital and balance sheet and to support growth, has been reduced to 14.28 billion rupees from at least 15.07 billion rupees earlier.

The statement said HNB's board of directors changed the decision on the share issue "with the view of giving existing shareholders a greater benefit from the rights issue of shares."

The rights will now be in the proportion of one for five instead of one for six.

HNB will raise 12.6 billion rupees by issuing 71,507,870 new shares comprising of 57,480,039 voting shares at 219.50 rupees each and another 1.68 billion rupees by issuing 14,027,831 non-voting shares at 119.50 rupees each.

Originally, HNB said it intends to raise 10.5 billion rupees by issuing 47.9 million voting shares and almost 1.4 billion rupees more by issuing 11.69 million non-voting shares.

The prices at which the shares are to be issued to shareholders have not been changed.

HNB said in its latest filing it has dropped plans to raise at least 3.17 billion rupees from a private placement of 13.5 million shares at a price not less than 235 rupees a share.

With the capital being augmented from the increased rights shares offered to shareholders "a further issue of shares by way of a private placement would not be necessary," the statement said.

Related Info :

• Sri Lanka HNB Bank to Raise Mega Bucks over Rs 15bn in Rights Issue and Private Placement

Sri Lanka HNB Bank to Raise Mega Bucks over Rs 15bn in Rights Issue and Private Placement

06th May 2011, www.lankabusinessonline.com

Sri Lanka's Hatton National Bank said it plans to raise at least 15.07 billion rupees through a rights issue and private placement to strengthen its capital and balance sheet and to support growth.

It intends to raise 10.5 billion rupees from the rights issue of one share for every six held by issuing 47.9 million voting shares at 219.50 rupees each, a stock exchange filing said.

The bank aims to raise almost 1.4 billion rupees more by issuing 11.69 million non-voting shares at 119.50 rupees each.

HNB also aims to raise at least 3.17 billion rupees from the private placement of 13.5 million shares at a price not less than 235 rupees a share.

The private placement will be offered to local and foreign institutional investors who offer the highest price. They will not be entitled to any rights shares.

Sri Lankan Stocks Closes High with Turnover at Rs 5.71bn

25th March 2010, www.lankabusinessonline.com

Sri Lankan stocks closed higher Thursday pulled up by gains in index heavy John Keells Holdings (JKH), while a large deal on Hatton National Bank (HNB) pushed turnover to over five billion rupees, brokers said.

The All Share Price Index closed at 3,730.43, up 7.71 points, while the Milanka index of more liquid shares gained 0.38 percent (16.45 points) to close at 4,337.05.

Turnover was 5.71 billion rupees, according to stock exchange provisional figures.

Brokers said foreigners sold 5.2 billion rupees of shares, and bought 465 million, resulting in a net outflow of 4.7 billion rupees.

"The day's turnover was dominated by JKH and HNB," Waruna Singappuli, head of research at NDB Stockbrokers said.

"The market speculation is that local institutional investors, primarily state funds, had increased their stakes in HNB, while a foreign fund sold."

Brokers said 25.8 million HNB shares changed hands at 180.00 rupees, in a negotiated off-the-floor deal. It closed at 180.25 rupees, down 25 cents.

Commercial Bank of Ceylon closed flat at 195.00 rupees, with 1.22 million shares traded. Seylan Bank closed flat at 46.00 rupees.

JKH, a conglomerate with business interest on transport, retail, finance, leisure and food processing sectors closed at 178.00 rupees, up 7.00.

Aitken Spence closed at 1,378.25 rupees, down 7.75, Hayleys closed flat at 225.00 rupees and Hemas Holdings closed at 117.75 rupees, down 25.

In other trading on the stock market, Environmental Resources Investments ordinary voting shares closed at 241.50 rupees, down 13.00. Its 0000 warrants closed at 150.75 rupees, down 3.00, and 0001 warrants closed at 152.50 rupees, down 1.25.

Brokers said at the end of trade Thursday there were 54 gainers and 74 losers.

CSE - Trading Thursday: Stocks Gain and Rose above 3,000-point Mark on the Benchmark Index

03rd December 2009, www.lankabusinessonline.com

Sri Lankan stocks extended gains and rose above the 3,000-point mark on the benchmark index Thursday boosted by high volume transactions on Hatton National Bank (HNB) and John Keells Holdings (JKH), brokers said.

The All Share Price Index closed at 3,004.61 up 1.78 percent (52.45 points) while the Milanka Price Index of more liquid stocks closed at 3,415.18, up 1.35 percent (45.50 points).

Turnover was pushed up to 2.57 billion rupees by the JKH and HNB deals, according to provisional Colombo Stock Exchange statistics.

"The market reacted positively mainly due to the confidence created by the large scale investors who entered the market during the week," Thakshila Hulangamuwa, vice president at stock brokering firm Asha Phillip Securities said.

"The main reason behind the investors making a positive approach towards the market was mainly due to the premiums paid by large investors, particularly the funds who took strategic positions."

Brokers said 7.76 million HNB shares changed hands at 162.00 rupees, and over 2.76 JKH shares changed hands at 154.00 rupees.

HNB closed at 163.25 rupees, up 25 cents, while conglomerate JKH closed at 152.00 rupees, up 2.00

Distilleries Company of Sri Lanka closed at 94.75 rupees, up 4.75 and diversified Hayleys closed at 155.25 rupees, down 1.75.

Commercial Bank of Ceylon closed at 175.00, up 4.25, Housing Development Finance Corporation closed at 130.00 rupees, up 5.00, and National Development Bank closed at 182.25, up 2.25.

Brokers said trading was thin apart for the large volume deals.

Plantations stocks also went up in price.

Agalawatte Plantations closed at 20 rupees, up 50 cents, Balangoda Plantations closed at 22.50 rupees, up 50 cents, Kegalle Plantations closed at 33.00 rupees, up 1.50, and Udapussellawa Plantations closed at 31.50 rupees, up 3.50.

Sri Lanka Telecom, Sri Lanka's largest fixed line operator closed at 42.25 rupees, up 75 cents, and Dialog Telekom, a unit of Telekom Malaysia closed flat at 7.00 rupees.

CSE: After COM Bank, Raj begins shedding HNB in Sri Lanka

9th November 2009, www.dailymirror.lk

Lankan born US hedge fund manager Raj Rajaratnam’s Galleon has begun exiting from HNB after it shed holding in Commercial Bank.

HNB saw 1.85 million of its shares (around 1% stake) traded yesterday between a high of Rs. 170 and a low of Rs. 168, before closing at the latter level, down by Rs. 1.50. Analysts said that among sellers of HNB was Galleon as well as Brown & Company. The latter, which has a stake of slightly over 7%, was booking profits.

Galleon’s focus on HNB is following the exit strategy on Commercial Bank, which the market witnessed in recent days.

On Tuesday, a block of 3.5 million shares of COMBank changed hands at Rs. 177 whilst the counter traded between a Rs. 180 and a low of Rs. 176.

Yesterday, a further block of 1.5 million shares of COMBank traded, also at the same price of Rs. 177. While COMBank gained only by 25 cents on Tuesday, it closed up by one rupee yesterday.

Buyers of Galleon shares as well as Browns quantity had been foreign and select local institutional investors.

Despite the second day of over Rs. 900 million turnover, investor sentiments remained relatively bearish on economic and political woes. Market capitalisation dipped by Rs. 1 billion yesterday over Tuesday.