National Equity Fund of NAMAL Pays Dividends for a Record 20 Years

03rd April 2013, www.island.lk

National Asset Management Limited (NAMAL), maintaining its continuous dividend payments, announced that the company’s flagship fund the National Equity Fund (NEF) paid a dividend of one rupee per unit to the Unit holders for the year ended 31st March 2013. NEF is the only Equity Fund to have made continuous dividend payments since its inception including the exigent times in the industry, NAMAL said in a statement.

Avancka Herat, Executive Director and Chief Investment Officer of NAMAL, stated that the fund outperformed the CSE All Share Price Index (ASPI) on an YTD, 12 months & 24 months by 5.51%, 9.44% and 17.99% and attributed this superior performance to timely asset allocation.
He further stated that the NEF which is classified as a Balanced Fund, was the best performing fund in its respective segment. The fund also achieved a CAGR of 14.71% on a dividend re investment basis since inception in December1991 to 28th February 2013. NEF was launched in 1991 and currently has Rs. 1.7 billion assets under management with annual dividend payouts being made at a historical average of Rs. 1.22 during the 20 year period.

"NAMAL is Sri Lanka’s first unit trust management company, having commenced operations in 1991, with a 20-year track record of successfully investing in the Sri Lankan equity and debt markets. NAMAL currently operates eight unit trusts including the flagship National Equity Fund and the only listed unit trust. Principal shareholders of NAMAL are Union Bank of Colombo PLC and DFCC Bank PLC."

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NAMAL Unit Trust Management Company Launches IPO Fund to Capture Potential Upside and to Benefit from Preferential Allocation of 10pct

27th July 2011, print.dailymirror.lk

National Asset Management Ltd (NAMAL), the pioneer Unit Trust Management Company in Sri Lanka announced the launch of the NAMAL IPO Fund. The Fund has been launched to capture potential upside on mispriced IPOs (initial public offerings) as well as to benefit from the preferential allocation of 10% of the offered shares to the Unit Trust Investor Category.

The fund will invest at the IPO offering stage and in post-IPO securities for a period of one year.

The Fund is targeted at retail investors with a minimum investment of Rs. 10,000 and will enable retail investors to obtain a meaningful allocation without the hassle of applying for each individual IPO and obtaining bank guarantees.

Avancka Herat, Executive Director of NAMAL, stated that “Retail investors have faced a significant challenge in evaluating IPOs in recent times.

With many IPOs in the pipeline in the next few years, Investors in the Fund will benefit from the professional selection of IPO securities and portfolio management by NAMAL’s experienced fund management team”.

Unique features of the NAMAL IPO Fund are that it would invest in the post-IPO stage and in other equities in the market if the managers think that IPOs are not properly valued thus ensuring equity exposure for investors. The NAMAL IPO Fund will not charge an exit fee to investors even if they redeem within a short period of the initial investment. The NAMAL IPO Fund is licensed by the Securities & Exchange Commission of Sri Lanka as an open-ended Unit Trust.

Charana Jayasuriya, Head - Sales & Structuring stated that “NAMAL IPO Fund joins the portfolio of open-ended unit trusts managed by NAMAL with different markets strategies and risk return objectives. NAMAL will continue to launch new opened ended funds to increase the range of individual investment options.”

Established in 1991, as the first Unit Trust Management Company in Sri Lanka, NAMAL has a 20-year track record of successfully investing in the Sri Lankan equity and debt markets. The flagship National Equity Fund has generated 16.9% annualised return for the last 19 years. NAMAL operates eight Unit Trusts including NAMAL Acuity Value Fund, the only listed Unit Trust, and the NAMAL Amana Fund, the only Shari’ah compliant Unit Trust.

In February 2011, Union Bank of Colombo PLC purchased 51% of NAMAL with Ennid Capital (Pvt) Ltd, an investment arm of Singapore based BP De Silva Holdings purchasing 19%. With founding shareholder DFCC Bank retaining a 30% shareholding, NAMAL is backed by the financial strength and stability of two of the leading banks in Sri Lanka. S Jeyavarman, CEO, stated that NAMAL Unit Trusts are now available from all Union Bank branches, as part of the strategy to offer new investment products to suburban and rural investors.

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• NAMAL Acuity Value Fund Declares First Dividends

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• Other Links on Funds and Unit Trusts

Sri Lanka’s First Unit Trust Company NAMAL Leverages Market Position with Backing from Union Bank

21st April 2011, www.island.lk

Union Bank’s strategic acquisition of a 51% stake of NAMAL will enable Sri Lanka’s first unit trust company to leverage its well established market position with the strength and backing of one of Sri Lanka’s fastest growing Banks.

NAMAL is forging ahead with a new strategic direction backed with the expertise of a new Board of Directors supported by well established product lines, a strong brand image and a customer base that will take the company to new heights says Avancka Herat, the newly appointed Executive Director of NAMAL.

He further stated that "as part of the new strategic direction and business strategy, the company is considering branding as an integral element and recently unveiled a new corporate identity that projects the transformation of NAMAL as a much stronger and dynamic player, whilst communicating the brand premise of value creation for investments to its preferred target audiences. The current shareholders of NAMAL are Union Bank, DFCC Bank and Ennid Capital.

NAMAL declared the 19th annual dividend for its flagship National Equity Fund (NEF), of Rs 2.50 per unit on the 30th March 2011 to all its unit holders.

S. Jeyavarman, CEO of NAMAL highlighted that NEF pays out annual dividend in the month of March every year, has done so continuously from its inception in 1992, 19 years ago. This dividend of Rs. 2.50 per unit translates to a 25% tax free dividend for investors who entered the fund at Rs 10/-. In the relevant dividend year ended 28th February 2011, the unit buying price increased from Rs 22.13 to Rs.30.63 a highlighted 38.4% increase, he said.

NEF being the balanced fund invests in both equity and debt markets and the Fund has the added advantage of being able to change its asset allocation to best suit the movements of the respective market, thereby adding value to the investor in the fund while enhancing the overall risk adjusted return to the long term investors. The current dividend mainly comprised gains and income from equity investments and income generated from fixed income instruments.

The good news to the investors in the fund is that the funds’ share portfolio has grown in the medium term in line with the objectives of the fund.

The National Equity Fund (NEF) was the first unit trust fund established in Sri Lanka, by National Asset Management Ltd (NAMAL) the company that pioneered Unit Trusts in Sri Lanka. NAMAL has seven unit trust funds under its management, which cater to diverse investor risk/return profiles.

NAMAL in the recent years launched NAMAL Amana Equity Fund and NAMAL Gilt Edged Fund 1 and NAMAL Acuity Value Fund, under close ended categories of funds. The units of the NAMAL Acuity Value Fund are listed on the Colombo Stock Exchange. "Our objective is to provide investors with a choice of the investment opportunities to choose appropriate funds for their long term investment needs and to plan specific financial needs" stated Jeyavarman.

Related Info :

• Union Bank Plans a Country Fund through NAMAL. Possibility of Listing is Singapore Explored

• NAMAL Acuity Value Fund Listed on the CSE, Sri Lanka

• Sri Lanka Unit Trusts Manage Rs22bn in Assets. Public Awareness a Must for Participation in the Economic Growth

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Union Bank Plans a Country Fund through NAMAL. Possibility of Listing is Singapore Explored

13th February 2011, www.sundaytimes.lk

Union Bank Ltd (UBL), which scored a double whammy this week by announcing its intention to go public by March end while acquiring a majority stake in Distilleries Company subsidiary, National Asset Management Ltd (NAMAL) is planning a country fund, UBL officials said.

“We will be creating a country fund for Sri Lanka and other emerging markets through NAMAL,” Alex Lovell, Deputy Chairman UBL and a high networth investor told the Business Times on the sidelines of UBL’s Initial Public Offering launch.

He added that NAMAL will shortly apply for regulatory sanctions pertaining to this fund. He said that the fund is still being structured and that they might explore twin listings here and abroad.

“We are exploring the possibility of listing this fund in a stable, highly regulated and a safe place such as Singapore,” he said. Distilleries subsidiary, Milford Holdings Pvt Ltd is selling a 70 % majority stake in pioneering unit trust firm, NAMAL for nearly Rs 455 million to two parties - UBL and Ennid Capital, the company in a statement said on Thursday.

It said a share sale agreement for UBL to purchase 51%, while Ennid Capital Pvt Ltd will buy 19% in NAMAL. Ennid Capital is Sri Lankan Jeweller, B.P. de Silva’s investment arm.

UBL IPO is slated to raise Rs. 375 million. The bank is offering 15 million shares at Rs. 25 in three categories of 1.5 million for employees, 2.25 million for customers that have maintained accounts for a minimum of 6 months as at 31 January 2011 and 11.25 million shares for investors.

Through this IPO UBL plans to carry out branch expansion and mobilisation of low cost funds, expand while leveraging of e-channels, focus on priority sectors in the economy for credit, and carry out trade financing, expand their capital market operationsand share trading, introduce banking for the bottom of the pyramid (bare-foot banking), implementation of a core banking system to increase efficiency and resource utilization and risk management system for prudent credit pricing and monitoring and focused recoveries.

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NAMAL Acuity Value Fund Declares First Dividends

05th October 2010, www.island.lk

NAMAL Acuity Value Fund (NAVF) – a ten year closed ended Fund declares a dividend of Rs.5/- per unit from its net realised income and realised gains for the period ending 31st August 2010, a press release from NAMAL Stated.

Being a pioneering effort to enable the public to buy and sell units in NAVF through the Stock Brokers, the units were listed at the Colombo Stock Exchange on 12th October 2009 and in the secondary market the units gradually picked up from its initial offer value of Rs.50.00 to Rs 102/- per unit on 21st September 2010 This is an increase of 104% in this period. Meanwhile, the Net Asset Value (NAV) per unit published by NAMAL on the last business day of each month shown a value appreciation from Rs 48.74 at the end of September 2009 to Rs.92.23 at the end of August 2010.

This dividend amounts to an yield of 10 percent to the original investors who bought units at Rs.50/- during the Initial Public offering (IPO) and 4.9 percent for investors who purchased units at the Price of Rs 102 that prevailed at the CSE on the 21st September 2010" said Mr.S.Jeyavarman, CEO of NAMAL.

Sri Lanka's NAMAL Acuity Value Fund Makes Progress

03rd August 2010, www.island.lk

NAMAL Acuity Value Fund (NAVF), a ten year closed ended Fund launched by NAMAL last year with its units listed on the Colombo Stock Exchange, has made steady progress, it said in a statement issued last morning.

NAMAL has been licensed by the Securities and Exchange Commission to launch and manage the NAMAL Acuity Value Fund, with the objective of investing in listed shares to generate above average return, and when necessary to convert into fixed income securities.

Being a pioneering effort to enable the public to buy and sell units in NAVF through the Stock Brokers, the units were listed at the Colombo Stock Exchange and in the secondary market the units gradually picked up from its initial offer value of Rs.50.00 to Rs 76.00 on June 30, 2010 an increase of 52% in this period.

In the mean time, the Net Asset Value (NAV) per unit published by NAMAL on the last business day of each month shows a value appreciation from Rs 48.74 at the end of September 2009 to Rs.79.61 at the end of June 2010. This works out to 63.3% unit value appreciation during this period the release further stated. During this period the unit price in the stock exchange fluctuated between the low of Rs 44.25 on November 10, 2009 and high of Rs.77.50 on June 23, 2010.

Similar to other forms of Funds offered by the Fund Managers in Sri Lanka, NAVF is an ideal investment vehicle for investors who have less expertise or time to monitor the stock market and listed security valuations to buy units of NAVF to participate in the stock market through a diversified portfolio of investments.

Fund Managers at NAMAL who have been managing the investments over many years monitor related factors and make investments in assets suitable for each fund. They have increased the asset allocation of NAVF towards the equity to gain optimum benefits from the shares of companies which have prospects for growth in the coming years, stated the CEO of NAMAL S.Jeyavarman.

NAVF has invested primarily in leisure, diversified holding and banking sectors and rest in beverages, food and tobacco, chemical & pharmaceuticals, healthcare and manufacturing sectors.

NAMAL is a licensed fund manager pioneered fund management in the industry and instrumental in launching many open ended and close ended schemes in the categories of balanced, growth, income, Sharia complaint, and gilt edged schemes.

More Info:
NAMAL Acuity Value Fund (NAVF)