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The Guardian Acuity Equity Fund is an open ended unit trust fund that invests in stocks listed in the Colombo Stock Exchange. (CSE)

The Portfolio is actively managed using a bottom up stock selection approach where investee companies are evaluated by the fund managers and research team using fundamental research and the team's extensive experience in capital markets.

Fund Facts

  Performance

Fund cumulative growth since inception (Till end April 2019)

45.22%

Benchmark ASPI cumulative growth since inception (Till end April 2019)

0.03%

Fund CAGR since inception (Till end April 2019)

5.34%

Benchmark CAGR since inception (Till end April 2019)

0.0%

  GENERAL FACTS

Inception Date

February 2012

Fund Size (End April 2019)

LKR 251.49 Million

Investment Objective

Achieving medium to long term capital appreciation

Minimum Investment

LKR 1,000

Trustee

Deutsche Bank

Unit Price as at 2019.06.13

RS 0.0

  ASSET ALLOCATION

Equity

40% (MIN) - 95% (MAX)

Cash & Cash Equivalents

5% (MIN) - 40% (MAX)

  FEE STRUCTURE

Management Fee

2.25% per annum

Trustee & Custodian Fee

0.3% per annum

Exit Fee

2% (applicable only for withdrawals during the first year of investing)

To understand the current status of the Fund, refer to the latest Fact Sheet.

Commentary BY FUND MANAGER, ASANKA JAYASEKERA

Sri Lanka faced the most devastating tragedy on Easter Sunday since the three decade long war ended in 2009. The deadly blasts killed more than 250 people and left hundreds more injured. Although my comment discusses the economic impact of these events my heartfelt condolences go out to my fellow Sri lankans who lost their loved ones on that tragic day. The impact on the economy is yet to be determined as many aspects of the economy were affected ranging from a tourism industry that earns four billion dollars to a daily income earners such as the trishaw drivers. Against this backdrop, the Colombo bourse (CSE) plummeted by 3.63% on the next trading day after the attack but did not incur significant panic selling as foreign inflows came to John Keells PLC, amounting to Rs 1.3bn, on the following day. Over the last week of the month both John Keells and Commercial Banks received foreign buying interest which supported to hold the falling investor confidence and limited the drop of All Share Price Index to 1.42% for the month. Total net foreign inflow for the month was Rs 1.7bn. The CSE was not able to capitalise the global equity markets uptick in this year which delivered fantastic returns (year to date) in other markets both in developed such as US (+18.2%: S&P500), Europe ex UK (+18.3%: MSCI EUexUK) and UK (12.0%: UK FTSE), and emerging markets (12.7%: MSCI EM). In relative terms, the CSE’s valuations (eg: PE ratio-8.5) are very attractive compared to other peer countries. Sluggish economic growth and political uncertainty prevailed over the last few quarters that hindered any positive factors albeit investors with long term investment horizon continue to hold and build their position in value stocks. The fund recorded a 0.97% drop for the month compared to a 1.42% drop in the benchmark ASPI and 4.07% drop in S&P20. Sampath Bank, Dialog Axiata and Hemas Holdings were the top contributors to negative return while Peoples’ Leasing and Ceylinco Insurance were the top two relative contributors that detracted from the negative returns. Further, low exposure to tourism sector (2.5%) helped the fund to outperform the ASPI movement in April. Year to date return stood at -9.92% and since inception annualised return dropped to 5.34% during the month. We continuously monitor the direct impact of the attack on key sectors: (1) tourism (though our exposure is not a portfolio defining weight), (2) construction, retail sectors which could temporary slowdown due to supply and demand condition (3) banking & finance sector which may face further increase in non performing loans. Its indirect impact, which could trickle down to many other sectors, would depend on how swiftly and effectively handle this situation and when affirm the full control of the security of the country. At a macro-economic level, the current account deficit may deteriorate due to a reduction of tourism income as tourism is the third largest foreign exchange earner while delays in FDIs and other investment could add further stress to balance of payment. This may offset to some extent if import demand drop with slowdown in consumption. The budget deficit may also increase due to loss of tax revenue and increase in subsidy and defence cost. However current downward trend in interest rates may give some relief to the government budget and corporates’ P&L together with the new relief package for tourism industry.

Why invest in the Equity Fund

Exposure to multiple stocks

Investment in the Equity Fund provides the investor exposure to all stocks the fund is invested in

Liquidity

Investors can gain exposure to equity without having to worry about liquidity

Switch Between Funds

investors have the flexibility to switch to the money market anytime at no cost in response to capital market movements

Well researched investment decisions

Stock calls are made by fund managers based on thorough research and insights by the internal research team

Hassle free; monitoring and execution

All transactions are executed by a separate operations team


INVESTMENT STRATEGY and stock selection process

In line with the bottom up stock selection approach we follow, the focus is more on identifying fundamentally strong securities trading at reasonable valuations, from a long term perspective.

stock selection process

RISKS OF INVESTING IN THE FUND

investment value is subject to change based on movement in the stock market.

As such the ability of the Fund to achieve its investment objectives will depend on the performance of the equity market, interest rate environment and overall economy.

The Unit price of the Fund can increase as well as decrease depending on the performance of the stock market

Trading on the stock exchange as a whole is subject to the level of liquidity of the market, which at times could be low especially if faced with volatility due to external developments.

This liquidity situation may inhibit the Fund's ability to obtain shares in quantity without having a marked effect on the shares' market price and may further prevent the Fund from being able to liquidate a position at the prevailing market price.

The GUARDIAN ACUITY MONEY MARKET FUND is an open ended unit trust fund that invests in investment grade (Rated BBB- or Above) fixed income securities maturing within 365 days.

NOTE :

Current yield is calculated based on average unit prices of past seven days and it is variable and subject to change

Current yield is based on past performance of the funds and the past performance of the fund should not be taken as indicative of its future performance.

Fund Facts

  Performance

Fund cumulative growth since inception (Till end April 2019)

99.68%

Benchmark cumulative growth since inception (Till end April 2019)

80.6%

Fund CAGR since inception (Till end April 2019)

10.5%

  GENERAL FACTS

Inception Date

February 2012

Fund Size (End April 2019)

LKR 5030.92 Million

Investment Objective

To maximize fund yield at a relatively low risk level

Minimum Investment

LKR 1,000

Trustee

Deutsche Bank

Unit Price as at 2019.06.12

RS 0.0

  FEE STRUCTURE

Management Fee

0.60% per annum

Trustee Fee

0.15% per annum

To understand the current status of the Fund, refer to the latest Fact Sheet.

COMMENTARY BY FUND MANAGER, SASHIKA WICKRAMATHILAKE

Sri Lanka faced the most devastating tragedy on Easter Sunday since the three decade long war ended in 2009. The deadly blasts killed more than 250 people and left hundreds more injured. Although my comment discusses the economic impact of these events my heartfelt condolences go out to my fellow Sri lankans who lost their loved ones on that tragic day. The impact on the economy is yet to be determined as many aspects of the economy were affected ranging from a tourism industry that earns four billion dollars to a daily income earners such as the trishaw drivers. Against this backdrop, the Colombo bourse (CSE) plummeted by 3.63% on the next trading day after the attack but did not incur significant panic selling as foreign inflows came to John Keells PLC, amounting to Rs 1.3bn, on the following day. Over the last week of the month both John Keells and Commercial Banks received foreign buying interest which supported to hold the falling investor confidence and limited the drop of All Share Price Index to 1.42% for the month. Total net foreign inflow for the month was Rs 1.7bn. The CSE was not able to capitalise the global equity markets uptick in this year which delivered fantastic returns (year to date) in other markets both in developed such as US (+18.2%: S&P500), Europe ex UK (+18.3%: MSCI EUexUK) and UK (12.0%: UK FTSE), and emerging markets (12.7%: MSCI EM). In relative terms, the CSE’s valuations (eg: PE ratio-8.5) are very attractive compared to other peer countries. Sluggish economic growth and political uncertainty prevailed over the last few quarters that hindered any positive factors albeit investors with long term investment horizon continue to hold and build their position in value stocks. The fund recorded a 0.97% drop for the month compared to a 1.42% drop in the benchmark ASPI and 4.07% drop in S&P20. Sampath Bank, Dialog Axiata and Hemas Holdings were the top contributors to negative return while Peoples’ Leasing and Ceylinco Insurance were the top two relative contributors that detracted from the negative returns. Further, low exposure to tourism sector (2.5%) helped the fund to outperform the ASPI movement in April. Year to date return stood at -9.92% and since inception annualised return dropped to 5.34% during the month. We continuously monitor the direct impact of the attack on key sectors: (1) tourism (though our exposure is not a portfolio defining weight), (2) construction, retail sectors which could temporary slowdown due to supply and demand condition (3) banking & finance sector which may face further increase in non performing loans. Its indirect impact, which could trickle down to many other sectors, would depend on how swiftly and effectively handle this situation and when affirm the full control of the security of the country. At a macro-economic level, the current account deficit may deteriorate due to a reduction of tourism income as tourism is the third largest foreign exchange earner while delays in FDIs and other investment could add further stress to balance of payment. This may offset to some extent if import demand drop with slowdown in consumption. The budget deficit may also increase due to loss of tax revenue and increase in subsidy and defence cost. However current downward trend in interest rates may give some relief to the government budget and corporates’ P&L together with the new relief package for tourism industry.

INVESTMENT STRATEGY

INVESTMENT STRATEGY

RISKS OF INVESTING IN THE FUND

The ability of the Fund to achieve its investment objectives will depend on the interest rate environment and the performance of the economy.

dividend paid and Unit price of the Fund can increase as well as decrease depending on interest rate fluctuations in the market.

The Fund is subject to interest rate risk, liquidity risk and default risk.

Interest Rate Risk - Changes to interest rates will cause the market values of the instruments in the portfolio to fluctuate which will have a direct bearing on the Unit price of the Fund.

Liquidity Risk - Liquidity risk is the ease at which an instrument can be sold without a significant change in value. The Fund will have a limited exposure to liquidity risk as a result of a higher exposure to more liquid government securities.

Default Risk - Default risk arises from the inability of the debt issuer to meet timely principal and interest payments.

The Guardian Acuity Money Market Gilt Fund is an open ended unit trust fund that invests in government securities maturing within 365 days.

Fund Facts

  Performance

Fund cumulative growth since inception (Till end November 2018)

34.61%

Benchmark cumulative growth since inception (Till end November 2018)

33.23%

Fund CAGR since inception (Till end November 2018)

8.39%

  GENERAL FACTS

Inception Date

February 2015

Fund Size (End November 2018)

LKR 247.35 Million

Investment Objective

To provide a secure annual income by investing in a portfolio of government securities maturing within 365 days

Minimum Investment

LKR 1,000

Trustee

Deutsche Bank

Unit Price as at 2019.06.13

RS 0.0

  FEE STRUCTURE

Management Fee

0.60% per annum

Trustee & Custodian Fee

0.2% per annum

To understand the current status of the Fund, refer to the latest Fact Sheet.

COMMENTARY BY FUND MANAGER, SASHKA WICKRAMATHILAKE

An upward movement in T bill rates was seen in November with the one year Treasury bill rate increasing to 11.20% from 10.39% % in the previous month. A sharp increase in weighted average prime lending rate (AWPLR) was seen during the month reflecting a drop in private sector credit demand. AWPLR decrease to 12.03% from 12.82% in last month.

RISKS OF INVESTING IN THE FUND

The ability of the Fund to achieve its investment objectives will depend on the interest rate environment and the performance of the economy.

The dividend paid and Unit price of the Fund can increase as well as decrease depending on interest rate fluctuations in the market.

The Fund is subject to interest rate risk and liquidity risk.

Interest Rate Risk - Changes to interest rates will cause the market values of the instruments in the portfolio to accrue interest at varying rates, which will have a direct bearing on the Unit price of the Fund.

Liquidity Risk - Liquidity risk is the ease at which an instrument can be sold without a significant change in value.

The Fund will have a negligible exposure to liquidity risk as a result of a full exposure being to liquid government securities.

Get In Touch with our Investment Advisors

+94 11 2039 386

Operational Support

+94 11 2 449 500

General Contact

No: 61, Janadhipathi Mawatha,
Colombo 01, Sri Lanka.