Senfin Money Market Fund to charge industry’s lowest management fee

Senfin Asset Management Ltd., (SFAM) has announced a significant milestone in its commitment to maximising returns for investors. 

With a rich history spanning 14 years as a Unit Trust and Private Wealth Management Company licenced by the Securities and Exchange Commission of Sri Lanka (SEC) and with Hatton National Bank PLC as its trustee, SFAM has introduced a remarkable reduction in the management fee of its flagship Senfin Money Market Fund to 0.15% per annum, effective from 1 April 2024, the lowest fee charged by any Money Market Fund in the country.

SFAM’s Chief Investment Officer (CIO) and Fund Manager of Senfin Money Market Fund Surath Perera emphasises the firm’s proactive approach to addressing the challenges posed by declining interest rates. 

He underscored SFAM’s unwavering commitment to investor welfare, stating, “Senfin Asset Management has taken proactive steps to address the current market environment characterised by declining interest rates and the inclusion of VAT on management fees. Despite these challenges, the management team at SFAM has successfully reduced the management fees associated with the Senfin Money Market Fund, aligning with their commitment to delivering value to investors and maximising their yield. This fee reduction underscores SFAM’s dedication to enhancing the fund’s appeal and fostering long-term growth and sustainability.”

Moreover, SFAM’s decision to reduce the management fee is rooted in its unwavering dedication to providing the best investment solutions for investors. With investors’ best interests at the forefront of every decision, SFAM remains committed to delivering optimal value and ensuring investor satisfaction.

In addition to reducing the management, SFAM has also taken other steps to maximise returns on its money market fund. Foreseeing the declining interest rate environment, especially after the Domestic Debt Optimisation (DDO) announcement, SFAM took steps to increase exposure to Money Market fixed income instruments with slightly longer tenure maturities at higher rates while maintaining liquidity to meet day-to-day redemptions as well as the credit quality of the fund. Therefore, the Senfin Money Market Fund has been able to provide a return above other comparable fixed-income investment instruments in the market.

SFAM said it takes immense pride in the accolades bestowed upon its Senfin Money Market Fund, affirming its commitment to delivering unparalleled value to investors. Awarded the prestigious title of Best Unit Trust Fund for two consecutive years in 2022 and 2023, along with securing the position of first runner-up in 2021 by CFA Sri Lanka at the annual Capital Market Awards, Senfin Money Market Fund stands as a testament to SFAM’s dedication to excellence.

SFAM said its unwavering commitment to investor satisfaction is further exemplified by its adherence to the rigorous standards outlined by the Global Investment Performance Standards (GIPS) framework. By ensuring transparency and accuracy in reporting fund performance, SFAM instills confidence and trust in investors. Moreover, SFAM proudly complies with the CFA Institute Asset Manager Code of Professional Conduct (on a self-declaration/assessment to CFA basis and not independently verified by the CFA Institute), underscoring its commitment to ethical practices and investor protection.

In line with its commitment to transparency and investor empowerment, SFAM is in the final stages of obtaining a credit rating for its Money Market Fund from Fitch Ratings as well. “This initiative will provide investors with valuable insights into the creditworthiness and risk profile of the fund’s underlying securities, further enhancing transparency and confidence. Through these efforts, SFAM aims to empower investors to make well-informed investment decisions, thereby strengthening the bond of trust and confidence between SFAM and its valued clients,” the Company said in its statement.

SFAM is a wholly owned subsidiary of Senkadagala Finance PLC, a finance company licensed by the Central Bank of Sri Lanka and one of the largest and most resilient Finance Companies in Sri Lanka, with a workforce of approximately 950 people across 110 branches spread around the island. Senkadagala Finance PLC commenced operations in the city of Kandy in 1968 and since then has steadily gained momentum, leveraging on the varied partnerships it nurtured throughout the years.