Ceybank tops Rs 3,000 m

Ceybank Unit Trust, Sri Lanka’s largest Unit Trust Fund achieved a another milestone with net assets exceeding Rs. 3,000 million yesterday recording 82 percent growth in 2009, far outpacing the medium term All Share Index movement.

“This remarkable performance was possible due to a more aggressive growth-oriented investment stance taken by the Fund Managers, guided by the Members of our Investment Advisory Panel and the Board who have wealth of experience in global business and finance.

We have an excellent team consisting of seasoned and well qualified investment professionals with more than 15 years’ experience. Their in-depth knowledge and understanding of the local market, and the tactical allocation into equity facilitated us to capitalize on the post war rally of the market” said Chairman of Unit Trust Management Co. (Pvt) Ltd (UTMCL) Mrs. Siromi Wickremasinghe.

Ceybank Unit Trust (CUT) is an Income and Growth Fund (Balanced Fund). The Balanced Fund aims at providing a reasonable capital growth in the medium to long term along with a regular dividend to the unit holders.

Although the Fund generally maintains a strategic equity allocation of 75 percent, tactical shifts to and from equity are made according to the market outlook. Therefore, the allocation to equity varies from time to time. “Correct timing of investment and disposal of shares play a key role in beating the market” said CEO/Executive Director of UTMCL, Chitra Sathkumara. “We buy on market downturns and over reactions to bad news and sell on up markets. We believe in going against the herd and picking stocks at bargain prices,” he said.

The equity portfolio of the Fund has been structured by diversifying across economic sectors and across securities within the sectors. “The Fund focuses mainly on high market cap liquid blue chips along with limited allocation to small cap growth stocks, but is cautious not to be excessive considering the lack of depth in the Colombo bourse.