Securities and Exchange Commission
(SEC) Director General Channa de Silva
Unit trust value tops Rs. 11 billion
Unit holders exceed 23,000; 564 million units:
The Net Asset Value (NAV) of the unit trust industry has reached Rs
11 billion by February this year.
It was Rs 6.7 billion in 2008 December.
There are 564 million units and over 23,000 unit holders now.
Around 65 percent of the NAV has been invested in equities while the
balance is invested in fixed income, Securities and Exchange Commission
(SEC) Director General Channa de Silva said.
The unit trust industry today indicates a sharp increase in the NAV.
The investor confidence has enhanced steadily with the restoration of
IATA Agents’ Association of Sri Lanka
launched their new logo at the Ceylon Chamber of Commerce
Auditorium yesterday. The Association decided to revamp
their previous logo, as they were using the official IATA
logo. Here, IATA Agents’ Association Immediate Past
President Rizmi Reyal, IATA Agents’ Association President
Bernard Wijetunge and IATA Agents’ Association Vice
President Rodney Koelmeyer. Picture by Saliya Rupasinghe
The Director General said they are targetting a higher number of unit
trust holders. “It is a preferred mechanism for householders to invest
in the stock market or in debt market through unit trusts. Unit trust is
one of the best approaches for household investors as they receive a
diversification to their portfolio,” he said.
An investor can enter into the unit trust market with a small amount
of capital. Even for a small investor it is easy to enter into the
market since the investor need not have to select in which company the
investment should be made and need not have a frequent knowledge about
the capital market.
These funds are managed by fund managers. The fund managers are under
the purview of the SEC. New listings in the market and free float will
support the industry. Therefore, unit trust is a well secure mechanism
to invest, de Silva said.
He said the nature of the unit trusts was not understood by the
investors due to the reasons of not widely marketed. Investors did not
understand the concept and it is a long-term investment. This is why
unit trusts were not as popular as shares,” he said.
“There is much potential for the fund managers to manage the pension
industry and high network fund managers. These funds could be converted
from savings to investments through professional fund managers,” de