Bank of Ceylon extends Portfolio Management Services to all clients

Being the No. 1 Bank in Sri Lanka, Bank of Ceylon (BOC) manages several funds at present and has decided to extend Portfolio Management Service (PMS) to all clients including individuals, corporates and trust funds through its Investment Banking Division. Under this, BOC will manage the client funds and invest them in various products. 

BOC as ‘Bankers to the Nation’ has the stability, strength and trust and will offer the highest level of safety and investment returns to the Client. Following are excerpts of an interview with Deputy General Manager (International, Treasury and Investment) Sarath Jayasuriya:

Q: Why does an investor need a dedicated Portfolio Manager?

A: It is basically for four reasons. Firstly, busy customers may not have enough spare time to find the best alternative for their investments. Secondly, as a premier financial institution, BOC has more access to frequently-changing financial market information which is not widely available to ordinary clients. Thirdly, the investor can have a hassle-free environment due to non-involvement in documentation. Fourthly, through proper diversification of client’s assets, investors can earn something more than investing in traditional deposits. 

Q: Is there any difference between your new service and investing in unit trusts? 

A: Yes. Unit trusts pool all the funds of investors and give the same return to all. But with BOC PMS, investor can enjoy higher returns through tailor made investment mix depend on their risk appetites. The other difference is that investors are aware of where their funds are invested unlike in unit trusts. 

Q: Is there a minimum tenor for the agreement? 

A: The minimum tenor for the agreement should be two years. Otherwise BOC is not in a position to generate progressive return. Higher the investment and longer the tenor gives investor more opportunities to enjoy higher returns according to their risk appetite.

Q: How strong is your investment management team? 

A: Our portfolio management team consists well-qualified and experienced fund managers. They have international exposure in our overseas branches such as London and Chennai. They continuously deal with various types of investment instruments. We also have experienced research analysts who examine the market information.

Q: When does an investor get the returns? 

A: Investment returns/income could be received at the end of agreement or as agreed terms at the initial discussion. 

Q: What are the investment instruments you offer to the third party clients? 

A: There are list of instruments including Government securities, Treasury bills and bonds, fixed deposits, repo investments, debentures, commercial papers, unit trusts, shares and asset backed trust certificates.

Q: Is there any particular reason to select BOC as one’s portfolio manager?

A: Yes. BOC has the highest public trust with over one trillion deposit base. It is the largest and strongest commercial bank in the nation with 100% State ownership. In addition, BOC is a leading player in treasury operations.  We have experience in managing our own funds for a long time. We do various research prior to investments. Furthermore, many people have difficulties in investing their funds and have requested us to manage those. Currently, we are the only State-owned commercial bank to fulfill their requirement. 

For more information, contact the following officers: M.H.S. Mala – Assistant General Manager (Investment Banking) – 011 2394311; Rajith Thushantha – Deputy Chief Dealer – 011 2203663; Chandima Herath – Senior Manager (Investments) – 011 2448348.