Unit Trust industry soars, Ceybank best performer

Monday, 7 February 2011 02:47 - - {{hitsCtrl.values.hits}}

*Assets under management up by 136% to Rs. 22 b in 2010

The country’s unit trust industry, the best option for risk averse investors, had produced record growth in 2010 with Ceybank funds being top performer overall.

The assets under management of the unit trust industry had grown by Rs. 12.7 billion or a massive 136% to Rs. 22.07 billion in 2010. This is the biggest growth enjoyed by the industry in its history. In 2009, assets under management amounted to Rs. 9.3 billion, up from Rs. 6.7 billion in 2008.

Ceybank Asset Management Ltd., and its portfolio of funds has been the best performer overall. Its market share of assets under management grew to 58% from 49% in 2009 whilst value wise it topped the Rs. 10 billion mark to finish at Rs. 12.7 billion as against Rs. 4.58 billion in 2009.

National Asset Management (NAMAL) was ranked second with Rs. 6 billion funds under management, up from Rs. 3.6 billion in 2009. However its market share had dipped to 27% from 39% in 2009.

Aviva NDB’s share had grown to 10% from 7% in 2009 whilst its funds under management had swelled from Rs. 649 million to Rs. 2.19 billion.

The equities market in 2010 had a record year with a 96% growth in terms of the movement in CSE All Share Index whilst the Milanka Index rose by 83%.

Only Ceybank Century Growth Fund and Eagle Growth Fund had managed to outperform the market by growing 104.7% and 101.4% respectively.

Of the balanced funds, Ceybank Unit Trust had grown by 94.65% whilst Eagle Growth and Income Fund had improved by 94.63%. This overall performance reinforces the fact that risk-averse investors if they choose unit trusts could enjoy higher return for their money though not going direct to the Colombo stock market.

Ceybank’s Century Growth Fund had gained by 382% during the past 24 months and 265% in a three year period, best among all in the respective time horizons.

NAMAL Growth Fund had grown by only 81.8% whilst its balanced fund National Equity Fund had grown by 69.28%, lower in comparison to Comtrust Equity Fund, managed by CT Holdings, which grew by 74.26%.

The only listed equity fund NAMAL Acuity Value Fund had delivered 91% return in 2010 whilst the NAMAL Amana Equity Fund categorised as Sharia fund grew by 67.5%. The Ceylon Index Fund performed below the market, by growing only by 62.68% though its Income Fund grew second best by 11.01% in the income fund categories. NAMAL Gilt Edged Fund topped the income fund league with a growth of 11.92% whilst Ceybank’s option in this category grew by 9.24%. Eagle Gilt Edged Fund and Eagle Income Fund grew by 9% and 8.69% respectively. NAMAL Income Fund grew by 9.02%.

In the league of money market funds, Ceybank topped with 8.57% growth followed by NAMAL which grew by only 7.98%.

In terms of Net Asset Value per unit, NAMAL Acuity Value Fund topped with a value of Rs. 103.57 whilst in the growth funds category NAMAL Growth Fund came on top with a value of Rs. 99.91, followed by Rs. 76.83 of Eagle Growth Fund and Rs. 72.35 of Ceybank Century Growth Fund. Ceybank Unit Trust’s NAV per unit was highest at Rs. 39.74 among balanced funds with Eagle coming second with Rs. 36.56.