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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 July 2021)

86.75%

Benchmark ASPI cumulative growth since inception (Till end July 2021)

48.28%

Fund CAGR since inception (Till end July 2021)

6.85%

Benchmark CAGR since inception (Till end July 2021)

4.27%

  GENERAL FACTS

Inception Date

February 2012

Fund Size (End July 2021)

LKR 341.93 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

Accelerated vaccine rollouts and generally strong economic data in developed economies led to strong gains in equities with S&P 500 leading with an 8.5% gain during 2Q whilst European stocks followed closely with a 7.1% return. The vaccination programs in rest of the Europe is now catching up with the UK & US. The reopening of economies and a fast rebound in activity has fueled inflation in some of the developed economies which is expected to contribute to market jitters in the 2H. The emerging equities lagged with a 5.1% gain during 2Q amidst slow vaccination rollout in most economies, policy tightening and regulatory concerns in China. Retail activity continued to dominate the local equities as notable price gains recorded in few relatively illiquid shares during the month. Despite the heightened concerns around the macro-economy during the month, the broader ASPI recorded a 5.87% gain accordingly. LOLC Development Finance (+851.71%), LOLC Holdings (+12.71%), Nestle Lanka (+21.84%), Cold Stores (+15.92%) & Expolanka Holdings (+9.38%) were the top gainers for the month. The more liquid large cap S&P SL20 underperformed with a -0.35% drop. The fund recorded a 1.29% gain during the month. The key laggards to the funds performance during the month were price weaknesses in top holdings Sampath Bank, John Keells Holdings & Distilleries. The continued low interest rate environment has powered strong retail activity in the bourse which is likely to remain in the near term. Economic risks such as further depletion of reserves, possible depreciation of the currency and inflationary pressures could lead to short term volatilities in equity markets.

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 July 2021)

139.24%

Benchmark cumulative growth since inception (Till end July 2021)

8.35%

Fund CAGR since inception (Till end July 2021)

9.69%

  GENERAL FACTS

Inception Date

February 2012

Fund Size (End July 2021)

LKR 2634.05 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 month ended was an eventful one with a noteworthy development being the economic concerns we have been discussing in the past months coming to the forefront of discussion. The central bank in its most recent policy review has indicated that the economy is expected to have recorded a better than expected growth in 1Q and the country is on path for an estimated 5% growth during 2021. The credit to private sector has expanded notably during Jan May 2021 and the momentum is expected to sustain. While deciding to maintain its policy rates, CB clearly indicated that they expect some inflationary pressure to build up in the medium term, in such case tightening policy actions to be considered. The headline inflation during the month of June increased to 5.2% YoY with food inflation recording an 11.3% YoY spike. In addition to the supply side pressures, we expect demand side inflation to emanate in the coming quarters due to the stimulus measures. The countrys USD reserve position continued to take the limelight as it dropped to USD4 bn level as of end June. CB acknowledged that reserves could experience further variations in the coming period ahead of USD1 bn sovereign bond payment due towards end July. Amidst tightening USD liquidity, CB has introduced certain tightening measures on trading the USD which led to some speculative activity in the informal currency market as per reports. We expect pressure on the LKR to continue with possible further depletion of reserves and lack of USD liquidity.

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.

Get In Touch with our Investment Advisors

Guardian Acuity Hotline

011 74 34 734

077 12 34 358

General Contact

011 24 49 500

Registered Office

61, Janadhipathi Mawatha,
Colombo 01.

Corporate Office

Acuity House, Level 5,
No. 53, Dharmapala Mawatha,
Colombo 03.

Subscriptions and Redemptions

guardianoperations@carcumb.com

Customer Complaints

clientservices@carcumb.com