Thursday, 25 February 2016

Namal Acuity Value Fund declines

The Namal Acuity Value Fund (NAVF) for the quarter ended December 31, 2015 has generated a return of 3.01% for the six month period ended December 2015, outperforming the benchmark All Share Price Index (ASPI) and the S&P Sri Lanka 20 Index (S&P SL20).

For the third quarter of FY16, the Fund recorded a 61.2% YoY growth in dividend and interest

income to Rs. 5.54m, which was offset by unrealized losses on financial asset held for trading.

As a result, the fund reported a total investment loss of Rs 22.80m compared to an investment income of 79.26m the perious year.

This resulted in a net loss of Rs. 27.56 m compared to a net profit of Rs. 73.24m in 3QFY15.

Net asset value of the fund declined 5.8% YoY to Rs. 1,366m. During 2015, the ASPI decreased 5.54% while the S&P SL20 declined 11.33%.

The average daily turnover during the year dropped to Rs 1,058m from Rs 1,411m in the comparative year.

Sri Lankan equity market witnessed a net outflow of Rs. 4.4bn (Jan-Dec 2015) as foreign investors exited emerging markets on the fear of economic slowdown and the US rate hike.

Foreign participation stood at 34.6% of turnover for the year 2015.

Benchmark 12 month Treasury bill auction yields increased by 111 basis points to 7.11% over the year under review.

CBSL raised the Statutory Reserve Ratio by 1.5ppt to 7.50% in December 2015 in order to control the demand side pressure on inflation, which was caused by the excess liquidity in the market.

www.dailynews.lk

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