NAMAL to use Vardhana, Union Bank to expand Unit Trusts

Ravi LADDUWAHETTY

National Asset Management Ltd (NAMAL) will use the branch network of its shareholder banks, Union Bank and DFCC Vardhana Bank to take Unit Trusts investments to rural areas.

Avanka Herath

This follows Union Bank’s strategic acquisition of a 51 percent stake of NAMAL which will enable Sri Lanka’s first unit trust company to leverage its well established market position with the strength and backing of one of Sri Lanka’s fastest growing banks, NAMAL Executive Director Avanka Herath told Daily News Business yesterday.

The pioneering Unit Trust will exploit synergies of the Union Bank and DFCC Vardhana Bank Branches in Kandy, Kurunegala, Galle, Trincomalee, Jaffna and Batticaloa to promote investments in Unit Trusts.

He also said there was large scale interest in Unit Trusts in the peripheries of Sri Lanka similar to the interests in equities and that the company will venture out to reap maximum returns from investments by educating the retail investors in the rural areas.

“We will use the branch network for maximum market penetration by rebranding the existing products while developing new ones which are at the research and development stage,” he said.

NAMAL is forging ahead with a new strategic direction backed with the expertise of a new Board of Directors supported by well established product lines, a strong brand image and a customer base that will take the company to new heights.

He further stated that as part of the new strategic direction and business strategy the company is considering branding as an integral element and recently unveiled a new corporate identity that projects the transformation of NAMAL as a much stronger and dynamic player, whilst communicating the brand premise of value creation for investments to its preferred target audiences.

The current shareholders of NAMAL are Union Bank, DFCC Bank and Ennid Capital.

NAMAL declared the 19th annual dividend for its flagship National Equity Fund (NEF), of Rs 2.50 per unit on March 30, 2011 to all its unit holders.

NAMAL CEO S. Jeyavarman said NEF pays out annual dividend in the month of March every year, has done so continuously from its inception in 1992, 19 years ago.This dividend of Rs 2.50 per unit translates to a 25 percent tax free dividend for investors who entered the fund at Rs 10.

“In the relevant dividend year ended February 28, 2011, the unit buying price increased from Rs 22.13 to Rs 30.63 a highlighted 38.4 percent increase,” he said.