Ceylon Asset Management | Index Fund Management

2013-06-18 Ceylon Index Fund Create: 48.61 / Redeem: 46.66 down

Ceylon Tourism Fund Create: 6.96 / Redeem: 6.68

Ceylon Financial Sector Fund Create: 7.84 / Redeem: 7.52 down

Ceylon Income Fund Create: 12.28 / Redeem: 12.28 Ceylon IPO Fund Create: 10.99 / Redeem: 10.77

Ceylon Gilt-Edged Fund Create: 11.67 / Redeem: 11.67

ASPI 6193.00 -26.11 -0.42 YTD: 9.75% down

Tourism TOP 10 847.75 7.94 0.95 YTD: 1.11%

Finance Top 10 796.11 -2.7 -0.34 YTD: 14.87% down

Top 10 Index 2673.20 -6.76 -0.25 YTD: 16.83% down

S & P SL 20 Index 3497.12 0.33 0.01 YTD: 13.36%

John Keells Holdings 264.00 -0.2 -0.08 down

Commercial Bank of Ceylon 116.50 0.1 0.09

Dialog Axiata 8.70 -0.1 -1.14 down

Aitken Spence Holdings 135.70 -1.3 -0.95 down

Aitken Spence Hotels Holdings 75.00 0.5 0.67

Hatton National Bank 164.00 0.5 0.31

Distilleries Company of Sri Lanka 192.00 -1 -0.52 down

Cargills Ceylon 171.90 -3.1 -1.77 down

The Lion Brewery Ceylon PLC 400 0.1 0.03

Chevron Lubricants Lanka 288.20 3.2 1.12

Ceylon Income Fund

The best performing Unit Trust in Sri Lanka. Annualized year to date (14th November) return of Ceylon Income Fund is 10.88%.

After tax return of 12.39% in financial year 2010/11. The top performing fixed income fund in 2010/11 at the lowest cost in Sri Lanka.

Invests in Sri Lanka corporate debt instruments rated “Investment Grade” (BBB - or better). Maximum single exposure limit is 15% per company.

Tax exempt returns. Tax advantage of 18% for corporate tax payers.

Please click to download Ceylon Income Fund Presentation

Unit Trust Association Performance Summary

Investment Rationale

Our target return in the Ceylon Income Fund is to provide a yield of 3.5 % over the One-year Treasury bill rate annually. In order to achieve this target rate, the following fixed income instruments are considered:
Corporate Debt Instruments* Bank Deposits, Securities Issued or Guaranteed by Banks and Government Securities
*investment grade risk, (rated BBB- or better by Fitch or RAM Ratings)

Tax Saving for Corporates of 18%

Corporate Bodies that invest in the Ceylon Income Fund, gain a 18% tax saving on Interest income. Companies are usually liable for Corporate Tax of 28% on interest income in their Profit & Loss Account. By investing with Ceylon Income Fund that incurs a maximum tax burden of 10%, enabling tax free distributions. The companies too can limit their tax burden to 10%. All distributions are tax free in the hands of both individual investors and corporate clients.

Income Distribution Policy

Net Income, (i.e. net of operating fees and expenses of the fund) will be distributed annually. Please contact us for more information.

Risk Factors

Since 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 better).


Buying Price	Selling Price

T-Bill & Bond Rates as at 19/06/2013
Period	% Per Annum
Overnight	7.00 %
3 Months	7.11 %
6 Months	7.21 %
12 Months	7.35 %
3 Year	7.99 %
5 Year	8.50 %

Right click on the graph to view full screen

Who May Invest

1. Citizens of Sri Lanka

2. Companies and institutions incorporated in Sri Lanka

3. Foreign institutions and individuals (Gazette No - 1719/22)

4. 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.

Unless permitted by the SEC, the manager will not make investments on the following:

a.    Any investment for the purpose of gaining management control of a company.

b.    Any investment in unlisted securities or foreign securities.

c.    Any investment that involves the Trust in unlimited liability

d.    Leverage by borrowing against securities or buying on margin

e.    Make loans or act as a guarantor or indemnity any person.

f.     Underwrite securities.

g.    Investment in commodities, futures and options.

h.    Investment in real estate.

Stocks at a Glance 2013-06-18
Index	Value	Daily Change	% Daily Change	Monthly
CIF	47.15	-0.12	-0.25%	4.75%
CTF	6.75	0.01	0.15%	-0.88%
CFF	7.60	-0.28	-3.55%	0.53%
CINF	12.28	0	0%	1.24%
IPO Fund	10.77	0.01	0.09%	0.65%
CGEF	11.67	0.01	0.09%	0.86%
ASPI	6193.00	-26.11	-0.42%	4.03%
Tourism 10	847.75	7.94	0.95%	5.24%
Finance 10	796.11	-2.7	-0.34%	0.85%
TOP 10	2673.20	-6.76	-0.25%	4.86%
S & P SL 20	3497.12	0.33	0.01%	3.90%

The Colombo Top 10 Index (TOP 10)
Company name	Share price	No of shares issued	Market Capitalization	Market Capital %
John Keells Holdings	264.00	851,323,807	224,749,485,048	23.99
Commercial Bank of Ceylon	116.50	779,225,073	90,779,721,005	12.32
Dialog Axiata	8.70	8,143,778,405	70,850,872,124	10.67
Aitken Spence Holdings	135.70	405,996,045	55,093,663,306	13.39
Hatton National Bank	164.00	317,569,919	52,081,466,716	7.41
Distilleries Company of Sri Lanka	192.00	300,000,000	57,600,000,000	7.07
Cargills Ceylon	171.90	224,000,000	38,505,600,000	5.48
The Lion Brewery Ceylon PLC	400.00	80,000,000	32,000,000,000	4.86
Aitken Spence Hotels Holdings	75.00	336,290,010	25,221,750,750	4.01
Chevron Lubricants Lanka	288.20	120,000,000	34,584,000,000	3.96
Total			586,920,209,304	93.16

JKH is a top performing stock on the Colombo Bourse. Through years of careful diversification the company now offers excellent exposure to high growth sectors in the economy including exclusive access to the Colombo port as well as leisure, financial services and prime real estate projects in Colombo.

Company page

The largest bank listed on the Bourse is a financial powerhouse recognized for its sound corporate strategies, operational management and low NPL ratio, giving it a competitive edge in the industry. Its timely investments in technology enable it to enjoy one of the lowest cost to income ratios in the industry with 170 branches and 333 ATMs. Following the recent collapse of a leading Finance Company, established local banks have benefited from the deposit migration.

Company page

A subsidiary of Axiata Group (Telecom Malaysia), Dialog enjoys the majority market share in the mobile telephone market with its tech savvy, drive for innovation in service and coverage. It has launched Dialog TV successfully and engaged in a cost-cutting exercise to sharpen its competitive edge.

Company page

Aitken Spence is the industry leader in the leisure sector owning some of the best hotels across the country. It has other diversified interests in shipping, logistics, printing, plantation, power generation, garment manufacture and insurance, providing exposure to some key growth sectors. The company is geared to penetrate regional markets having entered the Maldives and the high growth Indian market.

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Aitken Spence Hotels Holdings PLC is the core subsidiary for managing operations in the tourism sector for its parent company Aitken Spence Company Limited. AHUN’s operating map covers most parts of the South Asian region including Sri Lanka, Maldives and India. Further with the recent management contracts in Oman, the operations have now stretched to the Middle East Market.

Company page

In existence since 1888, HNB specializes in banking services to businesses and professional intermediaries looking for end-to-end solutions. The bank with its widespread branch distribution network and its own corporate headquarters building is well positioned in a stable and mature industry. HNB has been a forerunner in development banking and international trade activities.

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Controlling over 75% of the legal hard liquor market, Distilleries is the premier distiller in the island. The cash-rich company with an aggressive acquisition drive has diversified itself into several high growth sectors in the Sri Lankan economy.

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Its continuous investment in retail has made the Cargills retail arm Cargills Food City the largest retailer in the island. Its KFC franchise is the largest international restaurant chain in Sri Lanka. Through its marketing and distribution arm spread across the island Cargills distributes its manufactured brands as well as internationally renowned food and non-food brands.

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PLC - Company drive a globally competitive business portfolio spanning 12 defined sectors of enterprise. These sectors fall under the broader ambit of 7 categories - Global Markets and Manufacturing, Agriculture and Plantations, Transportation and Logistics, Leisure and Aviation, Consumer Products, Power and Energy, Investments and Services.

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Chevron is one of the world's leading integrated energy companies and conducts business worldwide. Company is involved in virtually every facet of the energy industry. It explore for, produce and transport crude oil and natural gas; refine, market and distribute transportation fuels and lubricants; manufacture and sell petrochemical products; generate power and produce geothermal energy; provide energy efficiency solutions; and develop the energy resources of the future, including research for advanced bio fuels.

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