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| Tuesday, 6 April 2004 |
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National Equity Fund declares highest ever dividend of Rs 2 per unit National Asset Management Limited (NAMAL), Managers of the flagship first Unit Trust, National Equity Fund (NEF), announced Rs. 2 per unit as dividend for the current year. NEF is the first Unit Trust launched in Sri Lanka with attractive tax benefits to the investors. NEF's main objective is to provide annual income to the investor and to achieve long term growth by investing in selected shares. Investors in NEF enjoy the benefits from the fixed income market while exposed to a selected portfolio of shares to generate long term growth of investments. The balanced nature of the portfolio reduces the risk of down trend to the investors at adverse situations from the share market while ensuring regular income and growth opportunities over longer period, a press release from NAMAL said. Historically this is the single highest dividend paid by the Fund since its launch in 1991. NEF has so far paid dividends to its unit holders every year and the total dividend distribution until last year amounts to Rs. 9.25 per unit. With this dividend the total payment of dividend will amount to Rs. 11.25 per unit. In this period the Colombo Stock Market performed well and reached a historical high as measured by the All Share Price Index in October 2003 creating an opportunity to the Managers of the National Equity Fund to realise some of its gains from stock investments. Hence it is possible to distribute an enhanced dividend this year. Under the current tax provisions the dividends are tax free in the hands of unit holders. Unit holders can either receive dividends in cash or reinvest the dividends in the fund to accumulate savings for future needs. "We provide the opportunity to reinvest the dividends with NEF without the front-end fee which is applicable in normal circumstances" NAMAL sources said. The original investors who opted to reinvest the dividends have achieved a compound annual return of 11.04% during the last 12-year period. "NEF's investments are diversified in fixed income securities and stocks. As on February 29, NEF's investments comprised 52.4 % in shares and 47.6 % in fixed income securities. As a balanced fund, its investments are positioned to generate annual dividends while achieving growth in the medium to long term" S. Jeyavarman, CEO of NAMAL said. NAMAL, the pioneer licensed Unit Trust Management Company in Sri Lanka is the subsidiary of the DFCC Bank and manages the National Equity Fund, NAMAL Growth Fund and NAMAL Income Fund. NAMAL provides a host of investor services to investors to find need based investment solutions, the release said. |
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