2010-09-02      Top 10 Index 2334.92 24.58  1.06% YTD 52.07%          ASPI 5785.17 95.10  1.67% YTD 70.88%          MPI 5961.52 52.20  0.88%          Tourism TOP 10 1140.50 18.88  1.68% YTD 0%          Ceylon Index Fund  Create :42.57 /Redeem :40.92          Ceylon Income Fund  Create :11.54 /Redeem :11.54          Ceylon Tourism Fund  Create :11.44 /Redeem :11.02          John Keells Holdings  266.80  1.70  0.64%          Dialog Telekom  10.10  0.10  1.00%          Commercial Bank  187.70  -0.90  -0.48%          HNB  292.10  -1.80  -0.61%          Aitken Spence Holdings  2500.00  0.50  0.02%          Carsons  814.30  42.60  5.52%          Distilleries Company of Sri Lanka  148.40  1.40  0.95%          Asian Hotels & Properties  178.90  3.90  2.23%          John Keells Hotels  20.90  0.20  0.97%          Hayleys  330.00  0.00  0.00%        
Ceylon Income Fund
"Invested in Corporate Debt of “Investment grade” (rated BBB- or above), Treasury Bills and Bank Guaranteed Debt instruments.
“Tax free returns for companies with a 25% Tax saving”
Buying Price Selling Price
11.54 11.54
T-Bill & Bond Rates as at 05/09/2010
 Period  % Per Annum
 Overnight 7.25%
 3 Months 7.13%
 6 Months 7.80%
 12 Months 7.87%
 3 Year 8.57%
 5 Year 9.01%
 
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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 and securities issued or guaranteed by banks Government Securities
“investment grade risk”, (rated BBB- or better by Fitch or RAM Ratings)
 
Tax Saving for Corporates of 25%  
Corporate Bodies that invest in the Ceylon Income Fund, gain a 25% tax saving on Interest income. Companies are usually liable for Corporate Tax of 35% 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)
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.
Who May Invest
1.
Citizens of Sri Lanka
2.
Companies and institutions incorporated in Sri Lanka.
3. Minors under the age of 18 years provided the application is made by a duly appointed guardian.
 
You can start your investment with only Rs.10,000/-
 
 
Index Value Daily Change % Daily Change Monthly
TOP 10 2310.34 -2.75 -0.12% -0.12%
Tourism 10 1121.62 12.90 1.16% 1.16%
ASPI 5690.07 32.06 0.57% 0.57%
MPI 5909.32 20.16 0.34% 0.34%
Index Fund 40.90 -0.05 -0.12% -0.12%
Tourism Fund 11.01 0.16 1.47% 1.47%