Our Funds
Trustee and Custodian Banks
Hatton National Bank /
Deutsche Bank AG
Licenced and Regulated by
Securities and Exchange
Commission of Sri Lanka
Ceylon IPO Fund
As at 04th December 2024
Buying
8.85
Selling
9.08
YTD Performance (Non- Annualized)
8.30 %
Overview
Investment Rationale
Many IPOs have been heavily oversubscribed and traded in the market at a significant premium. However, due to oversubscription, the allocation per investor has been low.
Unit trusts have been allocated 10% of each IPO, provided they qualify for the conditions specified by the SEC.
The fund will not invest in any other shares in the secondary market. Therefore, the fund is formulated to provide maximum returns to its investors in the short term.
Key Features
- Open-ended fund offering units on a daily basis.
- Maximum investment per investor is Rs. 10 million – defined as a “retail investment”.
- Minimum Investment is Rs. 5,000/-
- All Capital Gains on Units and Income Distributions of the Funds are tax-free in the hands of investors.
Income Distribution Policy
Distributable Income will be derived principally from realized capital gains and dividends 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 reinvest their distribution in units of the Funds.
Risk Factors
Being invested in IPO shares, this fund carries the risk of capital appreciation as well as depreciation with fluctuations of the IPO trading prices.
Benefits Of Investing In The Fund
Benefits To The Retail Investors
- Eligible for 15% of each application
- No more paperwork
- Avoid excessive bank charges
- Earn interest on idle cash
- All income distributions and capital gains from the fund are exempted from tax within the fund since Unit Trust acts as flow through. However, individual tax brackets will apply to investors.
- Flexibility to withdraw your money at anytime
Investment Details
0.20% per annum of assets under management
Nil
- Citizens of Sri Lanka
- Companies and institutions incorporated in Sri Lanka
- Foreign institutions and individuals (Gazette No – 1719/22)
All capital and profits earned can be repatriated to a pre-confirmed designated bank account without restriction.
Account Name : Ceylon IPO Fund
Account No : 003010539795
Bank : Hatton National Bank
Branch : Head Office
Country : Sri Lanka
Bank Code : 7083
Branch Code : 003
SWIFT : HBLILK LXXXX
Address : No. 479 T. B. Jayah Mawatha, Colombo 01
ISIN : LK0CIFU00003
Documents Required To Invest In The Fund
Ceylon Asset Management Company Limited does not accept cash.
You may apply for units of CIPO by transferring LKR from your account or by depositing a cheque to CIPO Account in Hatton National Bank AG. The details are as follows:
Individual/Joint Investors
- Duly signed application form
- A copy of your NIC / Passport
- A billing proof of address
Corporate Investor
- Application form signed by two authorized signatories
- A Board Resolution giving authority to place investments
- A letter of Authorization with specimen signatures to operate the investment
- Certified copy of Articles of Association
- Certified copy of Certificate of Incorporation
- Passport / NIC copies of the authorized signatories Information of Directors and Beneficial Owners
Procedure to Withdrawal
You can turn your units into cash at any time. All you have to do is send us an email to (redemption@ceylonam.com ) and we would transfer the funds to your designated account of yours within 01 working day
Emails received before 9.30 am on a working day, transactions will be processed based on the previous day’s closing price.
Emails received after 9.30 am on a working day, transactions will be processed based on the same day’s closing unit price
