NAMAL buoyant of rapid growth; unveils new strategic direction

Thursday, 21 April 2011 00:00 - - {{hitsCtrl.values.hits}}

Union Bank’s strategic acquisition of a 51% stake of NAMAL will enable Sri Lanka’s first unit trust company to leverage its well established market position with the strength and backing of one of Sri Lanka’s fastest growing Banks.

NAMAL is forging ahead with a new strategic direction backed with the expertise of a new Board of Directors supported by well established product lines, a strong brand image and a customer base that will take the company to new heights says Avancka Herat, the newly-appointed Executive Director of NAMAL.

He further stated that “as part of the new strategic direction and business strategy, the company is considering branding as an integral element and recently unveiled a new corporate identity that projects the transformation of NAMAL as a much stronger and dynamic player, whilst communicating the brand premise of value creation for investments to its preferred target audiences.” The current shareholders of NAMAL are Union Bank, DFCC Bank and Ennid Capital.

NAMAL declared the 19th annual dividend for its flagship National Equity Fund (NEF), of Rs. 2.50 per unit on 30 March 2011 to all its unit holders.

NAMAL Chief Executive Officer S. Jeyavarman highlighted that NEF pays out annual dividend in the month of March every year, has done so continuously from its inception in 1992, 19 years ago.

This dividend of Rs. 2.50 per unit translates to a 25% tax free dividend for investors who entered the fund at Rs. 10. In the relevant dividend year ended 28 February 2011, the unit buying price increased from Rs. 22.13 to Rs. 30.63 a highlighted 38.4% increase, he said.

NEF, being the balanced fund invests in both equity and debt markets and the fund, has the added advantage of being able to change its asset allocation to best suit the movements of the respective market, thereby adding value to the investor in the fund while enhancing the overall risk adjusted return to the long term investors.

The current dividend mainly comprised gains and income from equity investments and income generated from fixed income instruments. The good news to the investors in the fund is that the funds’ share portfolio has grown in the medium term in line with the objectives of the fund.

The NEF was the first unit trust fund established in Sri Lanka by NAMAL, the company that pioneered unit trusts in Sri Lanka. NAMAL has seven unit trust funds under its management, which cater to diverse investor risk/return profiles.

NAMAL in the recent years launched NAMAL Amana Equity Fund and NAMAL Gilt Edged Fund 1 and NAMAL Acuity Value Fund, under close ended categories of funds. The units of the NAMAL Acuity Value Fund are listed on the Colombo Stock Exchange.

“Our objective is to provide investors with a choice of the investment opportunities to choose appropriate funds for their long term investment needs and to plan specific financial needs,” stated Jeyavarman.