Investing in Sri Lanka Unit Trusts

Unit trusts (basically closed or open ended mutual funds) were introduced to Sri Lanka in 1991 as a way for Sri Lanka retail investors to invest in the Colombo Stock Exchange. For foreign retail investors interested in owning Sri Lanka unit trusts, it would be possible to open an account with the following members of the Unit Trust Association of Sri Lanka:

As of the end of 1Q2014, the above firms offered the following Sri Lanka unit trusts:

 

Ceybank Century Growth OPEN-ENDED GROWTH FUNDS
Eagle Growth Fund OPEN-ENDED GROWTH FUNDS
Guardian Acuity Equity Fund OPEN-ENDED GROWTH FUNDS
NAMAL Growth Fund OPEN-ENDED GROWTH FUNDS
CAL Quant Equity Fund OPEN-ENDED GROWTH FUNDS
Candor Growth Fund OPEN-ENDED GROWTH FUNDS
JB Vantage Value Equity Fund OPEN-ENDED GROWTH FUNDS
Ceybank Unit Trust OPEN-ENDED BALANCED FUNDS
Orient Equity Fund OPEN-ENDED BALANCED FUNDS
Eagle Growth & Income Fund OPEN-ENDED BALANCED FUNDS
Comtrust Equity Fund OPEN-ENDED BALANCED FUNDS
National Equity Fund OPEN-ENDED BALANCED FUNDS
CEYLON Index Fund OPEN-ENDED EQUITY INDEX FUNDS
ARPICOATARAXIA A&P SL 20 INDEX FUND OPEN-ENDED INDEX FUNDS
Ceylon Tourism Fund OPEN-ENDED EQUITY SECTOR FUNDS
Ceylon Financial Sector Fund OPEN-ENDED EQUITY SECTOR FUNDS
Crescent I Fund OPEN-ENDED SHARIAH FUND
AMANA Candor Shariah Fund OPEN-ENDED SHARIAH FUND
NAMAL Sharia Fund OPEN-ENDED SHARIAH FUND
Comtrust ADL Mudarabah Fund OPEN-ENDED SHARIAH FUND
NAMAL IPO Fund OPEN-ENDED IPO FUNDS
Ceylon IPO Fund OPEN-ENDED IPO FUNDS
Ceylon Income Fund OPEN-ENDED INCOME FUND
Orient Corporte Fund OPEN-ENDED INCOME FUND
CAL Investment Grade Fund OPEN-ENDED INCOME FUND
CAL High Yield Fund OPEN-ENDED INCOME FUND
CAL Corporate Debt & Gilt Trading Fund OPEN-ENDED INCOME FUND
CAL Medium Risk Debt Fund OPEN-ENDED INCOME FUND
Eagle Income Fund OPEN-ENDED INCOME FUND
First Capital Wealth Fund OPEN-ENDED INCOME FUND
CAL Corporate Treasury Fund OPEN-ENDED INCOME FUND
Guardian Acuity Fixed Income Fund OPEN-ENDED INCOME FUND
NAMAL Income Fund OPEN-ENDED INCOME FUND
NAMAL High Yield Fund OPEN-ENDED INCOME FUND
Eagle Gilt Edged Fund OPEN-ENDED GILT-EDGED FUNDS
Ceybank Surakum Fund OPEN-ENDED GILT-EDGED FUNDS
Astrue Gilt Edged Fund OPEN-ENDED GILT-EDGED FUNDS
Comtrust Gilt Edged Fund OPEN-ENDED GILT-EDGED FUNDS
CAL Gilt Fund OPEN-ENDED GILT-EDGED FUNDS
Orient Gilt Edged Fund OPEN-ENDED GILT-EDGED FUNDS
ARPICOATARAXIA Sri Lanka Bond Fund OPEN-ENDED GILT-EDGED FUNDS
Ceybank Gilt Edged Fund (B Series) OPEN-ENDED GILT-EDGED FUNDS
Ceylon Gilt – Edged Fund OPEN-ENDED GILT-EDGED FUNDS
Astrue Money Market Fund OPEN-ENDED MONEY-MARKET
Ceybank Savings Plus Money Market OPEN-ENDED MONEY-MARKET
Comtrust Money Market Fund OPEN-ENDED MONEY-MARKET
Eagle Money Fund OPEN-ENDED MONEY-MARKET
Eagle Money Plus Fund OPEN-ENDED MONEY-MARKET
JB Vantage Money Market Fund OPEN-ENDED MONEY-MARKET
NAMAL Money Market Fund OPEN-ENDED MONEY-MARKET
CASH MANAGEMENT TRUST OPEN-ENDED MONEY-MARKET
REPO FUND OPEN-ENDED MONEY-MARKET
NAMAL Acuity Value Fund CLOSE ENDED EQUITY GROWTH

 Note: Gilt-edged Funds are funds which invest only in Government Securities.

Just be aware that Sri Lanka unit trusts are not exactly a bargain because equity unit trusts have fees that range from 1% to 2% and typically come with a front end load or sales commission of between 1.5% and 5% while fees on bond and income unit trusts range from 0.5% to 1%. Sri Lanka unit trusts are also regulated under by the Securities and Exchange Commission of Sri Lanka under Sri Lankan laws.

Otherwise, foreign investors should be aware that income (such as interest, dividends and capital gains) generated from investments in Sri Lanka is not subject to any Exchange Control Regulations by the Sri Lankan Government. Foreign investors in Sri Lanka unit trusts would be exposed to exchange rate fluctuations.

Is this page up to date accurate? If not, please contact us or submit an update to this page in the comments section.

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