- Distributes Rs. 383 m from Ceybank Unit Trust and Rs. 33 m from Ceybank Century Growth as tax free dividends for investors
Ceybank Asset Management Ltd., the managers for Ceybank Funds, made the highest-ever dividend distribution of Rs. 417 m for investors in their equity funds, Ceybank Unit Trust and Ceybank Century Growth Fund recently. Accordingly the distribution would translate in to a dividend of Rs. 2.00 per unit of the respective Funds.
Established in 1992 Ceybank Unit Trust is the biggest balanced fund in the country with a net asset value of Rs. 5.8 b while the Ceybank Century Growth Fund is the country’s first and the biggest equity fund with a net asset value of Rs. 1 b established in 1997.
Commenting on the occasion, Ceybank Asset Management Chairman K.L. Hewage said: “It is a historical milestone for Ceybank Funds as it is the highest-ever dividend payment made by the Ceybank Unit Trust Fund since inception.”
Challenging conditions
He further stated that the higher dividend payment during the year was made amidst challenging stock market conditions.
“Our funds have outperformed the broader market, benefited by asset allocation decisions made by the fund management team. Despite the moderate market growth of 4% during the FY 2013/14 the accumulated gains realised by trading of shares over the years enabled us to declare a
higher dividend payout this year. Accordingly the current year dividend represents a growth exceeding 300% over the previous year which is significantly higher than the market growth during the period.”
Established in 1992 Ceybank Unit Trust is the biggest balanced fund in the country with a net asset value of Rs. 5.8 b while the Ceybank Century Growth Fund is the country’s first and the biggest equity fund with a net asset value of Rs. 1 b established in 1997.
Commenting on the occasion, Ceybank Asset Management Chairman K.L. Hewage said: “It is a historical milestone for Ceybank Funds as it is the highest-ever dividend payment made by the Ceybank Unit Trust Fund since inception.”
Challenging conditions
He further stated that the higher dividend payment during the year was made amidst challenging stock market conditions.
“Our funds have outperformed the broader market, benefited by asset allocation decisions made by the fund management team. Despite the moderate market growth of 4% during the FY 2013/14 the accumulated gains realised by trading of shares over the years enabled us to declare a
higher dividend payout this year. Accordingly the current year dividend represents a growth exceeding 300% over the previous year which is significantly higher than the market growth during the period.”
“It is a historical milestone for Ceybank Funds as it is the highest-ever dividend payment made by the Ceybank Unit Trust Fund since inception. The higher dividend payment during the year was made amidst challenging stock market conditions – Ceybank Asset Management Chairman K.L. Hewage”
Expressing his views, Ceybank Asset Management Ltd. CEO Chitra Sathkumara stated that the current dividend of Rs. 2 per unit for both Ceybank Unit Trust and Ceybank Century Growth Fund would translate to a dividend yield of 7.6% and 3.4% respectively to its unit holders in addition to the capital appreciation of 7.9% and 9.3% respectively during the period based on unit offer prices as at 1 April 2013.”
Commendable returns
Sathkumara further stated that the both Ceybank Unit Trust and Ceybank Century Growth Fund have achieved commendable returns for its investors over the years. “For example the total return of an investor who had invested in Ceybank Unit Trust 10 years ago as at today would be 256% (CAGR of 13.6%) while it is 351% (16.3% CAGR) if one had invested on Ceybank Century Growth Fund.”
He further stated the significant gains realised by the funds over the years have enabled the funds to maintain its regular dividend policy even during the periods of poor market
performance.
“The Ceybank Unit Trust has realised Rs. 2,730 m while Ceybank Century Growth Fund realised Rs. 373 m during the last five years as capital gains from the share trading”.
He further noted: “With the current dividend, Ceybank Unit Trust has paid Rs. 19.90 per unit while the Ceybank Century Growth Fund which has paid Rs. 15 per unit cumulatively, more than the investment made by the original investor. Accordingly the Ceybank Unit Trust has in total distributed Rs. 2.8 b as dividends since inception.
“Had an investor reinvested the dividends back in the Ceybank Unit Trust since inception in 1992, his investment would have grown at CAGR of 12.0% as against All Share Index growth of 9.8%, while if he had done the same with Ceybank Century Growth Fund since inception in 1997 his investment would have grown at CAGR of 15.4% as against 14.3% growth in the All Share Index.”
Stock market outlook
Commenting on the outlook of the stock market, Ceybank Asset Management Fund Manager Indika Rajakaruna stated that 2014 would be a turning year for the stock market.
“We think the low interest rates would benefit the stock market growth with better corporate earnings and attractive valuations that would encourage higher investor participation. At present we are bullish on the equities and are looking ahead for a higher total return for our unit holders in the coming years as well.”
“Both Ceybank Unit Trust and Ceybank Century Growth Fund have achieved commendable returns for its investors over the years. For example the total return of an investor who had invested in Ceybank Unit Trust 10 years ago as at today would be 256% (CAGR of 13.6%) while it is 351% (16.3% CAGR) if one had invested on Ceybank Century Growth Fund – Ceybank Asset Management Ltd. CEO Chitra Sathkumara”
Ceybank Asset Management, one of pioneer asset management companies in Sri Lanka and founded in 1991, is backed by the shareholdings of Sri Lanka’s leading State-owned Bank of Ceylon and Sri Lanka Insurance, Carsons Cumberbatch PLC and India’s pioneer unit trust fund manager, Unit Trust of India.
In addition to equity unit trust funds, the company also offers products for investors in fixed income through the Gilt Edged and Money Market Fund series. The National Savings Bank is the Trustee while the Bank of Ceylon is the Custodian for all unit trust funds managed by the company.
In addition to equity unit trust funds, the company also offers products for investors in fixed income through the Gilt Edged and Money Market Fund series. The National Savings Bank is the Trustee while the Bank of Ceylon is the Custodian for all unit trust funds managed by the company.
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