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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 September 2019)

56.08%

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

4.78%

Fund CAGR since inception (Till end September 2019)

6.04%

Benchmark CAGR since inception (Till end September 2019)

0.62%

  GENERAL FACTS

Inception Date

February 2012

Fund Size (End September 2019)

LKR 275.51 Million

Investment Objective

Achieving medium to long term capital appreciation

Minimum Investment

LKR 1,000

Trustee

Deutsche Bank

  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

Global Equity markets showed some recovery in September after sunk in August with escalation in US-China trade war. New round of monetary easing announced by US and Europe set off the negative effect from gloomy global economic outlook and trade war rhetoric. However, we believe that global markets will be dominated by these concern until trade negotiations between US -China make sufficient progress. Conversely, the Colombo bourse plummeted by 2.6% (ASPI) in September as foreign sell off continued and political uncertainty escalated. Net foreign outflow was Rs 1.2bn for the month and Rs 2.6bn for the year to date period. Albeit economy recovered faster than expected from the aftermath of Easter day attack, growth numbers are still at lower band (1.6% yoy in 2Q19) compared to historical numbers. Volatility continued during the period, driven by spotlight rotation among positive factors such as drop in interest rates and negative factors such as political uncertainty. Against this back drop, the fund fell by 3.26%, higher than benchmark ASPI is drop of 2.57% but lower than more liquid S&P 20 index is drop of 5.11%. Healthcare and Banking & Finance sectors stocks contributed most to the negative performance of the fund while only few stocks added positive return to the fund during the month. Declining interest rates and other improving macro variables mark an inflection point with favourable prospect for economy and stable outlook for political affairs . Once all of the fundamental factors have turned fully positive, stocks are typically at its full value as equity market is a forward looking mechanism. From medium/long term perspective, we have not strayed from our value oriented investment strategy which we believe the best stock picking approach that provides a sustainable return in the long run

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 September 2019)

113.21%

Benchmark cumulative growth since inception (Till end September 2019)

8.61%

Fund CAGR since inception (Till end September 2019)

10.48%

  GENERAL FACTS

Inception Date

February 2012

Fund Size (End September 2019)

LKR 7306.56 Million

Investment Objective

To maximize fund yield at a relatively low risk level

Minimum Investment

LKR 1,000

Trustee

Deutsche Bank

  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, CRISHANI PERERA

The central bank removed the ceiling rate on banks but imposed ceilings on lending rates as rates had not been brought down in line with the regulators expectations. This move was not unexpected as spokesmen for the central bank had mentioned on many instances the lending rates were on the higher side. With the deposit rate ceiling removed, larger lending institutions maintained their deposit rates while smaller to midsized banks were seen increasing their fixed deposit rates to regain lost deposits from the recent past. The month of September saw Treasury bills remaining flat while secondary market trading on the Treasury bonds experienced a gradual increase in yields . However we expect interest rates to remain at current levels in the near term with demand side pressures so far remaining broadly under control. Central banks accommodative monetary policy is also expected to support this view of flat interest rates whilst providing stimulus for growth. We continue to see elevated risks on fiscal slippage, potential to relax trade/import policies and also external factors such as the global economic slowdown.

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

  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, CRISHANI PERERA

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.