NAMAL Acuity Value Fund reports sharp increase in earnings, outperforms market

The NAMAL Acuity Value Fund (NAVF) managed by National Asset Management Limited (NAMAL), the only listed Fund on Colombo Stock Exchange reported sharp increase in earnings for the nine months ending 31 December 2012.  The Fund’s gross income rose by 94% YoY to Rs. 45.8 m and total net earnings were Rs. 52.7 m.

Avancka Herat, Executive Director and Chief Investment Officer of NAMAL stated that NAVF was able to report significant growth in income due to the timely portfolio reallocation from equities to high yielding debt and a value oriented investment strategy.

As of 31 December 2012, the Fund’s equity exposure was down to 72% (vs 80% in FY2011) and the Fund had almost 28% invested in high yielding corporate paper and cash equivalents.    The Fund’s top five equity holdings include Asiri Hospitals Holdings, DCSL, CT Holdings, Lion Brewery and Ceylon Hospitals.

NAVF has outperformed the Colombo Stock Exchange’s benchmark All Share Price Index (ASPI) by almost 6.8% over the past 12 months.  

NAMAL is Sri Lanka’s first unit trust management company, having commenced operations in 1991, with a 20-year track record of successfully investing in the Sri Lankan equity and debt markets. NAMAL currently operates eight Unit Trusts including the flagship National Equity Fund and the only listed Unit Trust. Principal shareholders of NAMAL are Union Bank of Colombo PLC and DFCC Bank PLC.