Tuesday 13 October 2015

Candor launches Sri Lanka close-ended mutual fund

ECONOMYNEXT – Sri Lanka’s Candor Asset Management (Pvt) Ltd. (CAM), a fund manager, said it will launch a five-year, close-ended listed Unit Trust with an Initial Public Offering of 50 million units at 10 rupees each.

Candor Opportunities Fund IPO, which will be raised to 75 million units in the event of oversubscription, will invest in listed equities and fixed income securities.

The IPO opens on October 20, 2015 and closes on November 9, a stock exchange filing said.

Eagle Proprietary Investment Ltd of Dubai, parent firm of CAM, will invest 100 million rupees as seed capital in the fund.

The fund manager will adopt an active management approach and will aim to provide annual dividends over the life of the fund through dividend income received, capital gains made and interest income earned by the fund.

Fees include a front-end fee of 1.5 percent of the initial offer price of the unit, management fee of two percent a year of net asset value, trustee fee of 0.15 percent a year of NAV to Deutsche bank AG, Colombo Branch. There will be no exit fee.

The fund will “primarily invest in stocks of well-managed companies that are attractively priced with medium to long-term growth and income potential with the option to move into fixed income securities at times when the equity market is over valued,” the offer document said.

“The investment management approach will be based on quality investing which will involved in-depth fundamental research, long term focus and strong price discipline.”

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