Ceylon Tourism Fund

  • CEYLON TOURISM FUND

    An equity fund that invests in 10 of the highest performing companies in the Hotels & Travels Sector (H&T Sector) listed on the Colombo Stock Exchange (CSE). The selected 10 companies cover over 50% of the H&T Sector and over 65% of the 5-star hotel rooms in Sri Lanka.

  • KEY FEATURES
    • Ability to invest in 10 hotels with a minimum investment of  Rs. 5,000/-
    • 10 companies selected/reviewed quarterly by an independent index committee
    • You can withdraw your money at any time.
  • INVESTMENT RATIONALE

    The Fund is an equity fund that invests in shares of the 10 companies that comprise the Tourism TOP 10 Index , under respective market capitalisation proportions. The TOP 10 Index is an in-house index, covering over 50% of the H&T Sector market capitalisation and is reviewed quarterly by the Equity Index Committee with transparent selection criteria.

  • THE “MANAGED” INDEX FUND ENHANCEMENTS

    a) Selected on the basis of market capitalisation.

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

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

  • 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
    1. Absence of trading risk, speculative risk or fund manager risk due to passive management style.
    2. Being invested in shares, this fund carries the risk of capital appreciation as well as depreciation with fluctuations of the Tourism TOP 10 Index.
    3. 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.
    4. The fund manager’s risk is the tracking error, defined as the performance difference between the index and the funds invested in the companies. The regulatory requirement to hold 3% of funds in cash will naturally lead to a performance deviation (tracking error) between the fund and the Tourism TOP 10 Index.

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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
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