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:
- Arpico Ataraxia Asset Management (Pvt) Ltd.
- Asset Trust Management (Pvt) Ltd.
- Candor Asset Management (Pvt) Ltd.
- Capital Alliance Investments Ltd.
- Ceybank Asset Management Ltd.
- Ceylon Asset Management Ltd.
- Comtrust Asset Management (Pvt) Ltd.
- First Capital Asset Management Ltd.
- Guardian Acuity Asset Management Ltd.
- Investrust Wealth Management Ltd.
- J B Financial (Pvt) Ltd.
- National Asset Management Ltd.
- NDB Wealth Management Ltd.
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.
