Ceylon Gilt-Edged Fund launched

A new fund that invests in Treasury Bills and Treasury Bonds has been launched by Ceylon Asset Management Co. Ltd (CAM), following the success of the Ceylon Income Fund, which emerged as the best performing fixed income fund over 2010/11 as well as 2011/12 financial years.

The high interest rates available on Government Securities in excess of 12 percent at zero risk, volatile equity and currency markets and increasing risk awareness has resulted in growing demand for the new fund. With tax exempt returns, the Ceylon Gilt-Edged Fund lends the maximum tax advantage to corporate investors, as well as the flexibility to withdraw funds at anytime without a penalty.

The Ceylon Gilt-Edged Fund is licensed by the Securities and Exchange Commission of Sri Lanka while Deutsche Bank will act as the trustee and custodian of the fund. CAM has a 12 year track record in fund management to offer optimal returns without speculative and trading risks. CAM also manages three equity index funds, namely Ceylon Index Fund, Ceylon Tourism Fund and Ceylon Financial Sector Fund as well as a specialised IPO Fund.