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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 November 2019)

79.08%

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

13.43%

Fund CAGR since inception (Till end November 2019)

7.8%

Benchmark CAGR since inception (Till end November 2019)

1.64%

  GENERAL FACTS

Inception Date

February 2012

Fund Size (End November 2019)

LKR 351.87 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

Developed Equity markets continued to perform well during November month on hopes of a preliminary US- China trade deal or at least there will not be any further escalation in tariffs. Conversely emerging market equities struggled with a strong dollar and recorded negative returns. Politics will be the focal point for global equity markets in December month as well due to the UK election and deadline of US-China trade negotiations falling in December. The Colombo bourse showed a positive performance with the market reacting to presidential elections recording a 3.70% growth in ASPI and a 3.09% growth in more liquid S& P 20 index in November. Thereafter, a package of sweeping tax cuts proposed at the first cabinet meeting further influenced sentiment. Both indirect and direct taxes were reduced while reduction of VAT from 15% to 8% alone will release around Rs 300 bn to the economy and with further cuts it is expected to generate Rs 400bn of tax reductions. The stimulus was introduced with an intention to boost consumption and revive the economic growth which was on a declining trend. The loss of almost a quarter of government revenue will significantly increase the budget deficit which could create instability in other parts of the macro economy if it is not managed swiftly and effectively going forward. Against this backdrop, your fund returned a 5.50% growth in November outperforming the benchmark ASPI return of 3.70%. All the stocks in the portfolio contributed positively for the months performance , among those Tokyo Cement, Chevron Lubricant and Peoples Leasing & Finance were the top contributors. The funds return for the year to date period increased to 11.09% compared to Benchmark ASPI return of 2.64%. Anticipated lower interest rates and fiscal stimulus are expected to spur the economic growth which, in turn, is expected to convert to growth in business earnings. This together with current attractive valuations of many companies in the CSE is expected to maintain retail enthusiasm for the CSE. However we are cautious about the medium term impact of the recent fiscal policy measures and how government handle the fiscal deficit. We continue with our disciplined approach of stock selection with medium term outlook while stay nimble for gain the market opportunities.

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 November 2019)

116.42%

Benchmark cumulative growth since inception (Till end November 2019)

8.47%

Fund CAGR since inception (Till end November 2019)

10.46%

  GENERAL FACTS

Inception Date

February 2012

Fund Size (End November 2019)

LKR 5671.29 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

Fiscal discipline which was subject to much discussion in our previous reviews as well as generally among the investment community came back to limelight with the sweeping tax concessions announced by the newly elected government. Accordingly tax cuts were introduced in VAT, NTB, PAYE & Withholding tax among others. Based on government estimates a revenue loss of over Rs.400 bn is expected due the tax changes implemented. The fiscal stimulus whilst expected to positively reflect on the economic growth in 2020, would result in further expansion in an already burgeoning fiscal deficit. This is an area which we feel require close attention in maneuvering the future monetary policy. The other factors such as credit demand, inflation, external sector performance and global economic outlook for 2020 so far points to a positive outlook on interest rates in the coming year. However more clarity is required on government policy on external trade and also pace of credit demand recovery. Therefore whilst continuing to be positive on the short term interest rate outlook, we remain cautious on possible challenges particularly towards 2nd half of 2020. Furthermore despite initial positive reaction from foreign investors in the government securities market following the conclusion of election, we have seen some caution from investors following substantial tax cuts. Market lending rates have been continuing to adjust downwards whilst deposit rates have remained broadly around similar levels. With the regulatory cap on the bank lending rates to be fully implemented by end 2019, we could expect this trend to continue whilst deposit rates are also expected to adjust marginally downwards in the short term.

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.