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| Sunday, 4 January 2004 |
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NAMAL funds report improved returns National Asset Management Limited (NAMAL), the manager of National Equity Fund, NAMAL Growth Fund and NAMAL Income Fund, has released the interim results of the funds for the first six months ended September 30, 2003. Many of the listed companies reported progressively improved corporate earnings in a lower interest rate and tax environment compared to the same period last year. The macro-economic environment began to stabilise along with improved tourist arrivals and foreign inflows and created a conducive climate for corporates to improve their earnings. Corporates took available opportunities to restructure the businesses and acquire other businesses to further expand their scope to gear themselves in anticipation of better time while preparing themselves to meet the competition, from other players. For the six months under review, the All Share Price Index gained by 74.88 per cent mainly as a result of continued optimism generated by the peace process and further expectations of improved economic conditions and corporate profits. The flow of foreign and local funds into the stock market contributed to the rising trend in share prices. The yield on government securities continued to fall during this period and the inflation as measured by the Colombo Consumers Price Index also declined to 7.6 per cent from 10.4 per cent in the same period in the previous year. Fund Managers at NAMAL continuously evaluated the changing political, economic, corporate and market environment to position the fund's investments in accordance with the stated objectives of the respective fund. Managers' focus mainly centred on balancing the risk profile of the funds to ensure their stability in times of market volatility, a company news release said. National Equity Fund The National Equity Fund registered 62.2 per cent return during the six-month period with a closing buying price of Rs. 15.30 per unit on September 30, 2003. NEF is a balanced fund to generate annual income and long-term growth to investors who have invested more in the share market to take advantage of the rising stock market while holding a proportion of the fund's investments in fixed income securities to generate income. The Fund's net income after tax from shares and fixed income was Rs. 13.83 million for the six months. The realised and unrealised gains from investments stood at Rs. 552.85 million at the end of September 2003. The total revenue for the period increased to Rs. 566.68 million compared to Rs. 299.79 million in the same period in 2002. NAMAL Growth Fund The NAMAL Growth Fund registered 70.9 per cent returns during the six-month period with a closing unit buying price of Rs. 17.64 per unit at the end of September 2003. As a growth fund to generate long-term growth in value, NGF invested mainly in shares with short-term money market investments to achieve a risk adjusted return to investors. The Fund's net income after tax from shares and other money market placements amount to Rs. 1.17 million. The realised and unrealised gains from share investments stood at Rs. 70.87 million at the end of September. The total earnings for the period improved to Rs. 72.04 million from Rs. 31.10 million in 2002. NAMAL Income Fund The lower interest rates for fixed income savings overall reduced the opportunities for the fund in the six-month period ended September. The unit buying price stood at Rs. 10.27 on September 30. As an income fund with regular distribution objectives, the Fund invested in corporate debt securities and other fixed income investments. The total earnings for the period was Rs. 8.28 million, compared to Rs. 7.83 million for the same period in 2002. It distributed Rs. 0.54 per unit in July 2003, according to the release. NAMAL's funds provide investment opportunities to investors to save on a regular basis to withstand the volatility in the financial markets while offering an alternate option to switch to other funds of NAMAL to manage the risk profile and needs of investors. NAMAL, the pioneer fund management company in Sri Lanka and a subsidiary of DFCC Bank, commenced operations in 1991. It provides financial planning and investment-related advisory services to the public to create more awareness about capital market investments and to choose appropriate funds for their investment needs, the release stated. |
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