CAL launches Sri Lanka’s Exclusive Active Fixed-Income Closed-End Fund

Friday, 9 February 2024 00:16 -     - {{hitsCtrl.values.hits}}


Capital Alliance Holdings Limited (CAL), the leading investment bank with over 23 years of extensive market experience, is pleased to announce that Capital Alliance Investments Ltd, the asset management division of CAL, has launched Sri Lanka’s exclusive active fixed-income closed-end fund.

The investment banking division of CAL, Capital Alliance Partners Ltd, played a crucial role as the financial advisor in the introduction, highlighting CAL's commitment to providing innovative financial solutions to the market.

This specialized fund is strategically launched during periods of high interest rates in the economy, offering investors the opportunity to lock their funds for a stipulated timeframe and gain maximum returns on their investments. The product will enhance the ability for investors to diversify their portfolio and manage liquidity and return objectives more efficiently.

The CEO of CAL Investments Ltd, Mr. Gayan De Silva, CFA, states “It is with great pride that I announce the listing of our fund, the ‘CAL 5 Year Optimum Fund’, on the Colombo Stock Exchange. At CAL, we live by a simple motto – ‘We are only two years away from irrelevance’, and today’s milestone stands testament to our commitment to being one of the most dynamic fund managers in Sri Lanka. We believe capital markets act as an intermediary in transferring wealth, which is key in moving economies into prosperity. Our focus is always on enhancing capital markets, and the launch of this closed-end fund, which will incidentally be the only active listed fixed-income fund in Sri Lanka, demonstrates our commitment to the cause”.

Further, he highlights how CAL 5 Year Optimum Fund differs from standard open-end funds. In terms of the trading, units of this fund will be traded on the Stock Exchange like individual stocks. Investors can buy and sell units throughout the trading hours, in contrast to open-end funds, where investors buy and sell units directly with the fund management company. Concerning pricing, investors buy and sell closed-end fund units through brokers at prevailing market prices, similar to individual stocks, whereas units of open-end funds are priced based on the net asset value of the fund. 

The launch of this fund will expand the product offering on the Stock Exchange and, consequently, enhance market participation, a crucial factor for the development of capital markets. Finally, Mr. Gayan expresses heartfelt gratitude to the Securities Exchange Commission and the Colombo Stock Exchange for their invaluable assistance in launching this fund. Additionally, recognition is extended to the CAL Investment Banking Team for their incredible effort in getting the fund listed.

Another notable milestone underscores CAL's steadfast dedication to introducing unparalleled financial solutions to the market and disseminating the most current financial news.