NAMAL - National Asset Management Ltd

News Room

	Press Release

		NAMAL Rewards Fund Investors
		National Equity Fund Declares Tax-free Dividend of 20% Consistent Dividend Record of 13 Years.
		NAMAL Builds Good Track Record for Funds
		NAMAL Launches Sri Lanka's First Money Market Fund
		An Exceptionally Good Year to Unitholders of NAMAL
		National Equity Fund declares highest ever dividend of Rs. 2/- per unit
		NAMAL Cuts Front End Fee to 2%
		NAMAL's Funds Release Interim Results
		NAMAL Income Fund Generated 13.23% return to long term investors



		National Equity Fund declares highest ever dividend of Rs. 2/- per unit

		National Asset Management Limited (NAMAL) Managers of the flagship first Unit Trust, National Equity Fund (NEF), announced Rs 2/- per unit as dividend for the current year. NEF is the first Unit Trust launched in Sri Lanka with attractive tax benefits to the investors. NEF's main objective is to provide annual income to the investor and to achieve long term growth by investing in selected shares. Investors in NEF enjoy the benefits from the fixed income market while exposed to a selected portfolio of shares to generate long term growth of investments. The balanced nature of the portfolio reduces the risk of down trend to the investors at adverse situations from the share market while ensuring regular income and growth opportunities over longer period, the press release from NAMAL stated. Historically this is the single highest dividend paid by the Fund since its launch in 1991. NEF has so far paid dividends to its unit holders every year and the total dividend distribution until last year amounts to Rs 9.25 per unit. With this dividend the total payment of dividend will amount to Rs 11.25 per unit. In this period the Colombo Stock Market performed well and reached a historical high as measured by All Share Price Index in October 2003 creating an opportunity to the Managers of the National Equity Fund to realise some of its gains from stock investments. Hence it is possible to distribute an enhanced dividend this year, the press release further stated. Under the current tax provisions the dividends are tax free in the hands of unit holders. Unit holders can either receive dividends in cash or reinvest the dividends in the fund to accumulate savings for future needs. "We provide the opportunity to reinvest the dividends with NEF without the front-end fee which is applicable in normal circumstances" NAMAL sources said. The original investors who opted to reinvest the dividends have achieved a compound annual return of 11.04% during the last 12 year period. "NEF's investments are diversified in both fixed income securities and stocks. As on 29th of February 2004, NEF's investments comprise 52.4 % in shares and 47.6 % in fixed income securities. As a balanced fund, its investments are positioned to generate annual dividends while achieving growth in the medium to long term" stated Mr S Jeyavarman, CEO of NAMAL. NAMAL, the pioneer licensed Unit Trust Management Company in Sri Lanka is the subsidiary of the DFCC Bank and manages the National Equity Fund, NAMAL Growth Fund and NAMAL Income Fund. NAMAL provides host of investor services to investors to find need based investment solutions, the release stated.
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		NAMAL Cuts Front End Fee to 2%
		National Asset Management Limited (NAMAL) Managers of National Equity Fund (NEF) and NAMAL Growth Fund (NGF) announced the reduction of front end fee on both funds from 5% to 2% with effect from 1^st November 2003. This reduction in front end fee will facilitate investors to invest their savings in the stock market at a lower cost and thereby enhance their potential returns from the fund. “Being the pioneer Unit Trust Manager, we thought it is necessary to afford the public an attractive opportunity to invest their savings in the equity market to meet their future needs, in a falling interest rate environment” said Mr S Jeyavarman Chief Executive Officer of NAMAL. The Unit Trusts provide instant access to the share and bond markets. It enables the investors to benefit from the diversified share and bond portfolio and have access to professional fund management. “The lower front end fee would further benefit the investors to optimize their returns from our funds” he further said. The existing investors in NEF and NGF can take advantage by investing further sums of money. It is a good way to invest in equity funds on a regular basis to reduce the risk of market fluctuations. He said, “timing of stock markets are difficult and regular investment plans can average the market over a period. It is a useful method in an equity fund to save and to benefit from long term gains arising from the capital market securities.” The National Equity Fund launched in 1991 mainly invests in shares and fixed income securities and pays annual dividends in March each year and has grown in a significant way in the recent years. The NEF performance for periods of six months, one year and two years, as of 30^th September 2003 was 62.1%, 47.0% and 162.4% respectively. The NAMAL Growth Fund launched in 1997 primarily invests in the Colombo Stock Market has also significantly grown in the recent years. The NGF performance for periods of six months, one year and two years, as of 30^th September 2003 was 70.9%, 50.1% and 205.7% respectively. NAMAL is the pioneer licensed Fund Manager and the subsidiary of the DFCC Bank. Other share holders of NAMAL are the Peoples Bank, and Employees Trust Fund Board. 29.10.2003
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		NAMAL's Funds Release Interim Results
		National Asset Management Limited (NAMAL) Managers of National Equity Fund (NEF), NAMAL Growth Fund (NGF) and NAMAL Income Fund (NIF) released the Interim Results of the funds for the first six months ended 30th September 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 (ASPI) gained by 74.88 percent 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 in this period and the inflation as measured by the Colombo Consumer Price Index (CCPI) also declined to 7.6 percent 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 stated objectives of respective fund. Manager's focus mainly centred on balancing the risk profile of the fund's to ensure stability of the fund in times of market volatility. National Equity Fund The National Equity Fund, registered 62.2 percent return during the six month period with a closing buying price of Rs 15.30 per unit on 30th September 2003. NEF is a balanced fund to generate annual income and long term growth to investors 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. Fund's net income after tax from shares and fixed income was Rs 13.83 million for the six month period under review. The realized and unrealized 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 last year. NAMAL Growth Fund The NAMAL Growth Fund registered 70.9 percent return 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. Fund's net income after tax from shares and other money market placements amounted to Rs 1.17 million. The realized and unrealized gains from share investments stood at Rs 70.87 million at the end of September 2003. The total earnings for the period improved to Rs 72.04 million from Rs 31.10 million recorded in the same period last year. NAMAL Income Fund The lower interest rates for fixed income savings overall reduced the opportunities for the fund in the six month period ended 30th September 2003. The Unit buying price stood at Rs 10.27 on 30th September 2003. 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 ended September 2003 was Rs 8.28 million compared to Rs 7.83 million for the same period last year. NIF distributed Rs 0.54 per unit in July 2003. NAMAL's funds provide investment opportunity 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 is the pioneer fund management company in Sri Lanka and a subsidiary of DFCC Bank, commenced operations in 1991. NAMAL 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, stated the press release from NAMAL.

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		NAMAL INCOME FUND GENERATED 13.23% RETURN TO LONG TERM INVESTORS
		National Asset Management Limited (NAMAL), the managers of NAMAL Income Fund (NIF) announced the second dividend of Rs. 0.42 per unit resulting in a dividend of Rs.0.96 per unit for the year ended 31st December 2003. The total dividend for the year amounts to 9.6% (on initial offer value of Rs 10/-) for the year. NIF distributes half-yearly dividends to its investors in the months of July and January for the preceding six months period. "The initial investor in the fund, having re-invested all dividends has been able to obtain an annual average compound return of 13.23% for the six year period. Current dividend will be tax free for corporate and retail investors" the release from NAMAL stated. In the six month period ended 31st December 2003, interest rates on treasury bills and bank deposits remained lower. The yield on 12 months treasury bills declined from 9.56% in January 2003 to 8.46% in June 2003 and ended up at 7.24% in December 2003. The average weighted deposit rate (AWDR) in the last six month period also declined from 6.0% to 5.42% in December 2003. "Having paid Rs 0.54 dividend per unit for the first six months period this year we are happy to announce Rs 0.42 dividend per unit for the six month period in a declining interest rate environment", stated Mr S Jeyavarman, CEO of NAMAL. "Although we have succeeded in generating an acceptable return to our investors during this period, lack of investment opportunities in the corporate debt market has constrained us to further improve the spreads above the government treasury yield", he further added. The yield for government securities picked up about twenty six basis points in the last two months of the year in an uncertain money market environment with political changes in the country after 4th November 2003. "NAMAL Income Fund was launched in 1998 to create an investment option to investors to diversify into fixed income securities comprising government and corporate debt instruments, and to realise a market driven half yearly income. Investors in NIF have the option to receive cash dividends or to reinvest the dividend to accumulate savings towards future needs" the release stated. NAMAL the pioneer licensed Unit Trust Management company in Sri Lanka is a subsidiary of the DFCC Bank and manages the National Equity Fund, NAMAL Growth Fund and NAMAL Income Fund. NAMAL provides host of investor services to provide need based investment solutions to the investors, the release from NAMAL stated.
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