Ceylon Index Fund

  • CEYLON INDEX FUND

    The “Blue Chip” Country Fund covers approximately 30% of the market capitalisation of the Colombo Stock Exchange (CSE). The fund tracks the Colombo Top 10 Index, selected on the basis of market capitalisation and liquidity. The index consists of 3 diversified conglomerates, the top 2 banks, top 3 beverage companies and top 2 manufacturing companies listed on the CSE.

  • KEY FEATURES
    • Ability to invest in 10 of the largest stocks in the CSE with the minimum investment of Rs. 5,000/-
    • 10 companies selected/reviewed quarterly by an independent index committee.
    • Diversified portfolio.
    • The risk is limited to market risk, i.e. no trading or manager risk.
    • Withdraw your money at any time.
  • INVESTMENT RATIONALE

    The Fund is an “enhanced” Index Fund invested in shares of the 10 companies that comprise the Colombo Top 10 Index (TOP 10 Index), under respective market capitalisation proportions. The TOP 10 index is selected by an independent Index Committee, covering approximately 30% of the total CSE market capitalisation.

    The fund aims to follow the market capitalisation proportions of the Index on any given day, while the TOP 10 Index aims to track the performance of the overall stock market (ASPI).

  • THE “MANAGED” INDEX FUND ENHANCEMENTS
    Selected on the basis of:

    a) market capitalization.

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

    c) Two stocks per sector to ensure diversification.

    Maintains 3% in cash as per the SEC liquidity requirement.

    Can invest up to 10% in IPO’s at the discretion of Manager.

  • TAX FREE

    All capital gains on units and distributions of the fund are tax free.

  • DIVIDEND DISTRIBUTION POLICY

    Distributable income will be derived principally from dividend income received by the fund. Net income will be distributed at the discretion of the manager after satisfying operating fees and expenses of the fund. Investors have the option to re-invest their annual distribution in units of the fund.

  • RISK FACTORS

    Minimum Risk equity portfolio due to the absence of Trading Risk, Speculative Risk or Fund Manager Risk.

    Being invested in shares, this fund carries the risk of capital appreciation as well as depreciation with fluctuations of the TOP 10 Index.

    The ten companies included in the index have sound reputations of good corporate governance and are well researched by analysts to unearth risks and opportunities.

    The regulatory requirement to hold 3% of funds in cash will naturally lead to a performance deviation (tracking error) between the fund and the TOP 10 index.

    YOU CAN START YOUR INVESTMENT WITH ONLY RS.5,000/-

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Fee Structure

  • Front End Fee – 2.00%
  • Management Fee – 1.00% p.a.
  • Trustee & Custodian Fee – 0.30%
  • Exit Fee – NIL
  • John Keells Holdings PLC
  • Ceylon Tobacco Company
  • Commercial Bank of Ceylon PLC
  • Dialog Axiata PLC
  • Hatton National Bank PLC
  • Distilleries Co. of Sri Lanka PLC
  • Ceylon Cold Stores PLC
  • Hemas Holdings PLC
  • Chevron Lubricants Lanka PLC
  • Teejay Lanka PLC