Ceybank Fund recorded highest capital gains

Ceybank's Unit Trust Fund recorded the highest capital gain in history in a given financial year, amounting to Rs.262 million during the 2006/07 financial year in review, according to its annual report. Its Chairman B.M. Amarasekera said this enabled the Fund to distribute Rs.178 million as dividends, 32% higher than the pay out of Rs.135 million in the previous year.

He stated that the Fund continuously reaped handsome benefits from the equity investments in the Colombo Bourse and is the largest Fund in the Unit Trust Industry, commanding over 55% of the market share in the Balanced Fund Category.

According to the report, the net realized capital gains from sale of equity of Rs.262 million were a record all time high for a year since the inception of the Fund. The Fund was able to realize significant capital gains through the realigning of the equity portfolio by the disposal of shares around peak levels. The Fund was also able to generate short term trading profits by re-investing part of the proceeds and successfully exploiting the market troughs. The equity exposure of the Fund remained at 89% of the total portfolio as at 31st March 2007.

The gross income of the Fund increased by 8% to Rs.77.3 million from Rs.71.6 million in the previous year, mainly due to the higher interest income on cash equivalents of the Fund consequent to the higher level of interest rates that prevailed during the year. The expenses grew by 6.9% as a result of higher management and trustee fees due to the growth in total net asset value of the Fund. The net income of the Fund grew by 9.1% to Rs.39.6 million from Rs.36.3 million in the prior year, due to a lower rate of growth in expenses. (NG)