Ceybank Unit Trust shines best

Ceybank Unit Trust, Sri Lanka’s largest equity linked Unit Trust Fund with net assets over Rs. 6.8 billion as at end March 2011, and managed by Ceybank Asset Management, (Ceybank), has announced a Tax free dividend of Rs. 2 per Unit for the FY 10/11, 100% increase over the last years Rs.1 dividend.

The Manager, Ceybank, with the concurrence of the Trustee to the Fund, NSB, have decided to distribute Rs. 330 million from realised capital gains as Tax free dividends to all the registered unit holders of the Fund as at 31March.  

The unit holders have the option to reinvest this dividend in the Fund without the usual 5% front-end fee.

“Based on the Ceybank Unit Trust offer price as at 1 April 2010, this gives a dividend yield of 8% to its Unit Holders in addition to the capital appreciation,” said Ceybank Chairman  K.L. Hewage who is also a Director on the Board of Bank of Ceylon.

Hewage, in his Half-Yearly Review of the Fund released to Unit holders, predicted significant gains for Ceybank Unit holders who remain in the Fund. True to his word, Ceybank Unit holder’s wealth has grown by more than 98% during the Year 2010, if they re-invested previous dividend.  “During the Year 2009 also we have doubled our Unit holder’s wealth,” he added.

“Guided by the members of our Investment Advisory Panel and the Board who have a wealth of experience in global business and finance, our Fund Managers have done a wonderful job to capitalise on the post war rally of the market,” the chairman said.

“We have capitalised on the volatility of the Colombo Stock Market to realise Ceybank’s highest ever capital gain of Rs. 1.132 billion from share trading, during a financial year,” Ceybank CEO Chitra Sathkumara said.  It has realised Rs. 600 million during the last financial year.  “We have further un-realised capital gains of over Rs. 3.15 billion in the portfolio, the benefits of which will be passed on to the Unit holders in the future” Sathkumara added.

According to him Ceybank Unit Trust is an investment opportunity designed to bring the public the best possible income as well as an appreciable growth to their capital while also entitling to some tax benefits.  “There are clear advantages in investing in the Ceybank Unit Trust,” he added.

According to the fund managers at Ceybank, Colombo Bourse is most likely to re-rate on the positive economic news and corporate earnings. “Ceybank Unit Trust is well placed to take advantage of the upward market movement. Therefore, investors of Ceybank Units can expect reasonable tax free returns in the medium term,” Sathukumara added.