Senfin Asset Management launches first-ever Dividend Fund

Senfin Asset Management Ltd. (SFAM), a fully-owned subsidiary of Senkadagala Finance PLC, has announced the launch of ‘Senfin Dividend Fund’ – a first-of-its-kind in Sri Lanka. 

Senfin Dividend Fund is an open-ended Unit Trust Fund that would invest in a portfolio of dividend yielding shares listed on the Colombo Stock Exchange (CSE); the objective of the fund is to generate income by way of dividends and by way of capital appreciation. The fund is licensed by the Securities and Exchange Commission of Sri Lanka (SEC). The Initial Public Offer (IPO) commenced yesterday (19 April) and will be open until 4 May. The initial offer price is Rs. 10 per unit. The minimum investment is only Rs. 1,000. Hatton National Bank will act as the Trustee to the fund.

According to SFAM Deputy CEO Ineka Dunuwille, the fund has a highly competitive fee structure in that it does not have a front-end fee or exit fee, while the management fee is 0.75% per annum and the trustee fee is 0.15% per annum of the Net Asset Value of the fund.

Senfin Dividend Fund Manager Surath Perera states that with economic activities gradually picking up, corporate earnings are expected to recover in 2021 vs. the lows of pandemic-hit 2020. In addition, the present low interest rate environment is expected to continue in the medium-term. These make equity markets more attractive and could possibly re-rate the market upwards. This will augur well for equity funds. 

SFAM is the asset management arm of Senkadagala Finance, and is licensed and regulated by the SEC to manage unit trust funds and private wealth portfolios. SFAM is also a member of the Unit Trust Association of Sri Lanka. 

SFAM’s parent company, Senkadagala Finance was established in Kandy in 1968. The company is one of the most respected licensed finance companies in Sri Lanka, with more than 50 years of experience and operating excellence.