Ceylon Asset Management, Deutsche Bank tie-up:
Ceylon Tourism Fund unveiled
Ceylon
Asset Management and Deutsche Bank AG tied-up to introduce the Ceylon
Tourism Fund, to capture returns from Top 10 tourism companies listed on
the Colombo Stock Exchange (CSE).
Ceylon Asset Management and tourism sector officials announcing
the new tourism fund at the press conference held yesterday.
Picture by Saman Sri Wedage |
It is the first ever tourism sector fund, structured as an
open-ended, equity fund that lets investors invest and exit at any time.
The Fund will distribute tax-free income from profits on an annual
basis. It captures over 70 percent market capitalization of the hotel
and tourism sector of the CSE, including both Colombo hotels as well as
resorts a company, a media release said.
On July 28, 2010 the Units will be offered at the IPO price of Rs 10
with a minimum investment of Rs. 10,000. Deutsche Bank, is the Trustee
and Custodian of the fund.
The Ceylon Tourism Fund is licensed by the Securities and Exchange
Commission of Sri Lanka.
The Ceylon Tourism Fund invests in ten key companies in the hotels
and travel sector. The companies are Aitken Spence Hotels, John Keells
Hotels, Asian Hotel and Properties, Taj Lanka Hotels, Ceylon Hotels
Corporation, Hotel Services (Ceylon), Royal Palm Beach Hotels, Amaya
Leisure (former Connaisance), Light House Hotel (managed by Jetwing) and
the Fortress Resort PLC.
The Top 10 tourism companies posses the management skills, service
standards, marketing relationships and the capital to leverage profits
and expand market share in the near term.
Ceylon Asset Management has a ten-year track record in index fund
management to offer stock market returns without speculative or trading
risks. CAM also manages two other funds namely the Ceylon Index Fund and
the Ceylon Income Fund.
CAM is an associate company of Sri Lanka Insurance Corporation.
SJ |