Ceylon Financial Sector Fund

  • CEYLON FINANCIAL SECTOR FUND

    Ceylon Financial Sector Fund is a Bank, Finance & Insurance (BFI) Sector based equity fund that covers over 60% of the sector market capitalisation of the Colombo Stock Exchange (CSE). The index consists of 7 banks and 3 finance companies.

  • Key Features
    • Invest in 10 of the largest stock in the BFI sector for a minimum investment of Rs. 5,000/-
    • Companies are selected/reviewed quarterly by an independent index committee
    • Diversified portfolio to minimise risk
    • No trading risk or manager risk due to passive index fund management style.
  • INVESTMENT RATIONALE

    The Fund is an equity fund that invests in shares of the 10 companies that comprise the Finance 10 Index, under portfolio allocations outline below. The Finance 10 Index is a sector index, covering over 60% of the BFI sector market capitalisation and is reviewed quarterly by the investment committee with transparent selection criteria.

  • INDEX SELECTION CRITERIA

    a) Selected from the BFI sector on the basis of market capitalization.

    b) A “liquidity test” to qualify for index selection.

    c) Corporate Governance and risk management.

  • RISK FACTORS

    a) Exposed to BFI sector stock market risk

    b) Comparatively low risk equity portfolio due to the absence of Trading Risk, Speculative Risk or Fund Manager Risk.

    c) Being invested in shares, this Fund carries the risk of capital appreciation as well as depreciation with fluctuations of the Finance 10 Index.

    d) The fund maintains 3% in cash and exposure limits as per SEC requirements.

    e) The ten companies included in the Index are well researched by analysts to unearth risks and opportunities.

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Fee Structure

  • Front End Fee – 2.00%
  • Management Fee – 1.00% p.a.
  • Trustee & Custodian Fee – 0.20%
  • Exit Fee – NIL
  • Commercial Bank of Ceylon PLC
  • Hatton National Bank PLC
  • Sampath Bank PLC
  • DFCC Bank PLC
  • People’s Leasing PLC
  • National Development Bank PLC
  • Central Finance Company PLC
  • Nations Trust Bank PLC
  • Union Bank of Colombo PLC
  • Seylan Bank PLC