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 Tourism Fund sec

Ceylon Tourism Fund invests in 10 of the high performance companies in the Hotels & Travels sector (H&T sector) listed on the Colombo Stock Exchange. The 95% of total asset of the fund will be invested in the selected 10 stocks and the balance 5% will be held in cash or cash equivalent instruments as per SEC requirements.

The H&TSector grew by 199% during the year 2009 while the ASPI grew by 125% during the same period.

The selected 10 companies covering over 70% of the H&T sector, Ceylon Tourism Fund is a Fund that has been created to track the performance of this secor.
Investment Rationale
The Fund is an equity fund that invested in shares of the 10 companies that comprise the Top 10 Index , under respective market capitalisation proportions. The TOP 10 Index is an In-house Index, covering approximately 70% of the H&T sector market capitalisation and is reviewed quarterly by the Investment 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.
d)
Maintains 5% in cash as per the SEC liquidity requirement.
e) Can invest up to 10% in H&T sector 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 and realised capital gains received by the Fund. Net income will be distributed annually 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
Exposed to H&T sector stock market risk

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 TOURISM 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 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 5% of funds in cash and single company exposure limits will naturally lead to a performance deviation (tracking error) between the fund and the TOURISM TOP 10 Index.

You can start your investment with only Rs.10,000/-

Fee Structure
Front End Fee : 2%
Management Fee : 1% per annum
Performance Fee : 0.5% in the event of the net return* of the Unit NAV exceeds 10% during any quarter.
     
*Net return calculated as increase in Net Asset Value (NAV) + distribution
 
Please click to download the Information Memorandum and the Application Form of Ceylon Tourism Fund.

 
 
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%