Candor Opportunities Fund to be liquidated

Condor Opportunities Fund (COF) is to be liquidated, its managers Condor Asset Management Ltd., said.

It said giving due cognizance to the response pertaining to the consent from unit holders of the Fund, the Securities and Exchange Commission (SEC) has recommended to Candor to liquidate the Fund in November as stipulated in the Explanatory Memorandum of the Fund.

The SEC has made its recommendation based on the view that majority unity holder approval has not been complied with in order to extend the liquidation date of the Fund.

Therefore, Candor Asset Management will liquidate the Fund in November in accordance with the contents of the Trust Deed and the Explanatory Memorandum of the Fund.

During the financial year ended on 31 December 2019, COF has provided a negative return of 4.46%, and a negative return of 12.2% since the inception of the Fund in November 2015. Annualised performance since inception was a negative 3.11%. Conversely the ASPI performance respectively was +1.27%, -12.66% and -3.24%.

The Net Asset Value (NAV) per unit of the COF declined from Rs. 9.19 at 31 December 2018 to Rs. 8.78 as at 31 December 2019. The Net Asset Value as at 31 March 2020 was further lower at Rs. 6.49.

For the quarter ended 31 March, the net loss was Rs. 115.6 million, up from Rs. 52.4 million loss a year earlier.

Net assets attributable to unit holders were Rs. 327.9 million as at 31 March, down from Rs. 443.5 million as at 31 December 2019.

Candor Asset Management was fully owned by Eagle Proprietary Investment Ltd., (EPIL) and EPIL sold its shareholding in Candor Asset Management Ltd in its entirety to Senkadagala Finance PLC in March this year. The trustee of the Fund is Hatton National Bank PLC.

E.W. Balasuriya & Co and Perpetual Holdings Ltd., held 19.8% (10 million units) each of the units as at 31 March. Other major unit holders include Thurston Investments (9.9%), Allianz Insurance Lanka (4.95%), Bartleet Religare Securities (4.95%) and HDFC Bank (4.95%).