Ceylon Money Market Fund rated A-(f) Stable Outlook by Lanka Rating Agency

• Performance of 11.73% in 2024*

The primary objective of the Ceylon Money Market Fund is to offer risk adjusted returns to its clients by investing in short-term investment grade-rated (BBB- and higher) fixed income securities.  

The fund portfolio composition includes non-bank financial institutions (~64.0 percent), commercial papers (~16.9 percent), reverse repos (~13.5 percent) and treasury bills (~4.8 percent). 

As of May 2024, the portfolio duration [the weighted average maturity (WAM)] stood at 131 days. The fund reported a return of 6.1 percent during the first quarter, which is higher than the peer average (5.7 percent). Future returns are subject to market conditions. (~75.16 percent) of the portfolio comprise of A rated and above corporate debt instruments and treasury bill investments while (~24 percent) is invested in investment grade rated (BBB-) and above corporate debt instruments as at May 2024. The fund (f) adheres to its approved investment policy and market expectations and is expected to continue the same, going forward. Any significant changes in the asset allocation, credit risk, duration, maturity profile or returns compared to the peers will have an impact on the fund rating.

The managing company, Ceylon Asset Management Co. Ltd (CAM), is licensed under Securities and Exchange Commission of Sri Lanka Act, No. 19 of 2021. CAM is an Associate Company of Sri Lanka Insurance Corporation. CAM operates eight collective investment schemes (unit trust funds), out of which seven are rupee-denominated, namely Ceylon Money Market Fund, Ceylon Treasury Income Fund, Ceylon Income Fund, Ceylon IPO Fund, Ceylon Financial Sector Fund, Ceylon Index Fund and Ceylon Tourism Fund. The trustee and custodian bank of the LKR funds is Hatton National Bank. CAM manages the only US dollar-denominated Sovereign Bond Fund, formally known as Ceylon Dollar Bond Fund (CDBF) that exclusively invests in Sri Lanka International Sovereign Bonds issued by the government of Sri Lanka. The trustee and custodian bank of CDBF is Deutsche Bank AG Colombo. 

The total assets under management (AUM) of the company were approximately Rs.13 billion, out of which the Ceylon Money Market Fund reported an AUM of approximately Rs.2 billion as at May 2024. The fund reported a year-to-date net return of 11.73 percent p.a. and the fund AUM surpassed Rs.4 billion as at August 2024.
Dulindra Fernando has been Managing Director of CAM since January 2009. Previously, he served as Chief Executive Officer at MAS Investments. Dulindra Fernando is a Chartered Financial Analyst (CFA), a member of the Institute of Chartered Accountants in Australia and holds a Bachelor’s degree in Economics from Monash University.  

*YTD annualised as at August 31, 2024. Past performance is not an indicator of the future performance. Investors are advised to read and understand the contents of the KIID before investing. Among others investors shall consider the fees and charges involved.