Ceylon Asset Management adopts CFA Reporting Standards
Sanjeevi JAYASURIYA
Ceylon Asset Management Co. Ltd. (CAM) has adopted the Global
Investments Performance Standards (GIPS) developed and administrated by
CharteredFinancial Analyst (CFA) Institute, USA, for the first time in
Sri Lanka.
This is an initiative promoted by the CFA Sri Lanka Society in
developing Sri Lanka’s Capital Market standards to enhance international
credibility.
Rajiv Casie Chitty, CFA GIPS Chair spearheaded this initiative on
behalf of CFA Sri Lanka.
GIPS is a global investment performance presentation standard which
setsbest practices for the calculation and presenting of investment
performance that is readily comparable among investment firms and
countries.
Investment managers that adhere to investment performance standards
assure investorsthat the firm’s investment performance is complete and
fairly presented.
In Sri Lanka the investment management industry has been growing
rapidly interms of number of investors, asset under management and
competition among firms.
The Unit Trust industry which had Rs. 9.41 billion asset
undermanagement in 2009 has doubled to Rs.18.69 billion in 2011. The
numbers of Unit Trust companies have increased from 5 to 10 over the
same period.
Accordingly, return calculations and performance presentation should
be uniform in order to fairly compare the performance of companies, and
other countries with Sri Lanka.
CAM is the first company to adopt GIPS in Sri Lanka. CAM currently
manages six funds including the Ceylon Income Fund, which was best
performing Unit Trust in 2011 and the best performing Income Fund in
2010. All the fund performances are presented in accordance with GIPS.
All polices, calculation procedures and performance presentation are
available on the CAM web site. |