Unit trust industry AUM increases

Charumini de Silva

The Assets Under Management (AUM) of the unit trust industry increased from Rs 10.6 billion to Rs 22.5 billion during the financial year 10/11 ended at March 31. This amounts to a 111 percent growth in AUM.

Speaking to Daily News Business Unit Trust Association of Sri Lanka President, S.Jeyavarman said that there is a substantial increase in the AUM last year. Three key reasons for this increase was due to launching new funds, improvement in the value of equity investments and new investments in the existing funds.

With the interest brought down people tend to look for alternative investment opportunities. Thus many of them invested in the equity market and equity products like unit trusts. The industry at present indicates a sharp increase.

This is an evidence that investor confidence has enhanced commendably, he said.