Twenty million units on offer:

NAMAL and Acuity partners to launch Rs. 1 billion IPO

Ramani Kangaraarachchi

National Asset Management Limited (NAMAL) and Acuity Partners will launch the Initial Public Offering (IPO) of the NAMAL Acuity Value Fund to the value of Rs 1 billion. This will be the first closed ended Unit Trust to be listed on the Colombo Stock Exchange (CSE), CEO NAMAL S. Jeyavarman told a media briefing at the HNB Towers yesterday.

CEO, Acuity Partners, Ray Abeywardena, CEO, NAMAL S. Jeyavarman and Vice President Acuity Partners Nalin Karunatileka at the media briefing. Picture by Sumanachandra Ariyawansa

The 10-year fund will give the public the option of investing in listed equities and listed and unlisted fixed income securities, he said.

Twenty million units are on offer at Rs. 50 per unit, and the minimum investment is Rs. 10,000.

The fund will be liquidated in 10 years and during this period the units will be tradable on the CSE. The fund assets will be invested in equities and fixed income securities depending on the prevailing investment climate, he said. The strategy is expected to limit any downside risk while capitalizing on upward movements in the stock market.

Jeyavarman said that investors can expect attractive investment returns through the full-time fund management expertise provided by a licensed fund manager with an excellent track record.

The IPO comes at an ideal time when fund managers and investors are displaying a renewed interest in the Sri Lankan equity market, he said.

CEO Acuity Partners Ray Abeywardena said that the Namal Acuity Value Fund is not subject to the risk of early redemption. Therefore, the potential returns are higher.

The unit holder can sell units at the prevailing market price on the CSE during the ten-year period until liquidation. Unit Trust are the ideal investment vehicle for investors who may not have the time and the expertise to invest directly in the stock market, he said.

The NAMAL Acuity Value Fund is managed by NAMAL, a unit trust management company licensed and regulated by the Securities and Exchange Commission of Sri Lanka with 18 years' experience.

The Fund is sponsored by Acuity Partners, a joint venture of DFCC Bank and Hatton National Bank PLC. The trustee and custodian to the fund is Deutsche Bank.