Ceylon Income Fund

  • CEYLON INCOME FUND

    An open-ended long term fixed income fund that invests in rated corporate debt instruments of “Investment Grade” (rated BBB or above) and bank guaranteed debt instruments.

  • INVESTMENT RATIONALE

    The objective of the fund is to safeguard capital and to provide investment grade corporate debt returns. In order to achieve this objective, the fund will invest in the following instruments:

    1. Corporate debt instruments rated “Investment Grade” (BBB or better)
    2. Maximum unlisted single company exposure is 15%- Maximum listed single company exposure is 25%- Maximum BBB category exposure is 25%
    3. Deposits in licensed commercial banks (to provide liquidity for redemption’s
  • INCOME DISTRIBUTION POLICY

    Net Income, (i.e. net of operating fees, taxes and expenses of the fund) will be distributed as per the discretion of the manager.

  • RISK FACTORS

    Since the fund invests in financial instruments that have a maturity period of over one year the units are calculated on a marked to market basis. Therefore, the interest rate volatility in the market have a direct impact on the unit price.

    Further, the fund is invested in a combination of rated corporate debt instruments, bank and government securities, the maximum diversified risk of the fund is “investment grade risk” (BBB or above).

  • WHO MAY INVEST
    • Citizens of Sri Lanka
    • Companies and institutions incorporated in Sri Lanka
    • Foreign institutions and individuals (Gazette No – 1719/22)
    • Minors under the age of 18 years provided the application is made by a duly appointed guardian.
  • INVESTMENT RESTRICTIONS

    The manager will make investments within the parameters set out by the Securities and Exchange Commission of Sri Lanka (SEC) directives and guidelines issues by the SEC from time to time as well as the Unit Trust Deed of the Ceylon Income Fund.

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Fee Structure

  • Front End Fee – NIL
  • Management Fee – 0.5%.
  • Trustee & Custodian Fee – 0.2%
  • Exit Fee – NIL