Sri Lanka Mutual Fund Sector Opportunity Outlook 2022
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“Sri Lanka Mutual Fund Sector Opportunity Outlook 2022” report gives comprehensive insight on the mutual fund (unit trust) sector in Sri Lanka. Report highlights the ongoing trends in the development of mutual fund segment and its future growth opportunity. During last six years (2011-2016) the mutual fund sector returns grew by more than 11%. The highest growth was witnessed in 2015, when the sector returns grew by almost 17%. Currently Open Ended Money Market funds dominate the mutual fund sector landscape with total share of close to 63% and assets vale of US$ 433 Million.
The mutual fund industry of Sri Lanka has excellent potential to develop and become a strong component of capital market with required changes in the market structure, distribution channels, products and investment education. While a higher growth trajectory for the economy generated greater opportunities for the fund, significant short term concerns remain over the fundamental state of the economy. As interest rates remains the most important driver of fund returns, future returns are a function of interest rate movements that are currently changeable.
The government has actively participated in the growth of the mutual fund sector through the regulatory and policy framework. Certain initiatives have been taken in the banking sector in order to enhance the rising market figures. Government initiatives for foreign trade have made ways for foreign investors to invest in the country’s rising markets. State department’s office of investment affairs has opened a lot of opportunities for investments and portfolios. The securities and exchange commission of Sri Lanka covers Colombo Stock exchange, Unit Trusts, stock brokers, listed public companies, margin traders, underwriters, investment managers, credit rating agencies and securities depositories.
Portfolio investments are encouraged in the country by certain government initiatives. Foreign trade regulations have been relaxed by the government in recent years. Foreign investors can purchase up to 100% of equity in Sri Lankan companies in numerous permitted sectors. In order to facilitate portfolio investment, country and regional funds may obtain SEC approval to invest in Sri Lanka’s stock market. These funds make transactions through share investments in external rupee accounts maintained in commercial banks.
The market has grown up till now and with improvements made clubbed with ones in the pipeline have assured the market growth in future. The principle institutions are functioning to cure the most practical mechanism existing in stock brokering firms and their branches. In this context, both SEC and CSE, the stock brokerage industry and the unit trust industry have decided to work together to expand the scope of the stock brokering industry to include other capital market products and strengthen their institutional capacity and professional skills to handle a wider range of products that include unit trusts.
the economy of Sri Lanka consist of a large capacity and a multitude of opportunities to be exploited in the banking financing sector with a need, desire and ability to overcome expected challenges in the future. The measures to be taken in the particular situation and time are the achievement resulting into financial stability. Many steps have been taken in the previous years and are still in the pipeline to be implemented in the coming years for better growth of the industry. The country has proved itself as a powerful nation that has the ability to control its destiny in the last decade during financial crisis and will continue to do so in the future.
“Sri Lanka Mutual Fund Sector Opportunity Outlook 2022” report highlights:
“Sri Lanka Mutual Fund Sector Opportunity Outlook 2022” report gives comprehensive insight on the mutual fund (unit trust) sector in Sri Lanka. Report highlights the ongoing trends in the development of mutual fund segment and its future growth opportunity. During last six years (2011-2016) the mutual fund sector returns grew by more than 11%. The highest growth was witnessed in 2015, when the sector returns grew by almost 17%. Currently Open Ended Money Market funds dominate the mutual fund sector landscape with total share of close to 63% and assets vale of US$ 433 Million.
The mutual fund industry of Sri Lanka has excellent potential to develop and become a strong component of capital market with required changes in the market structure, distribution channels, products and investment education. While a higher growth trajectory for the economy generated greater opportunities for the fund, significant short term concerns remain over the fundamental state of the economy. As interest rates remains the most important driver of fund returns, future returns are a function of interest rate movements that are currently changeable.
The government has actively participated in the growth of the mutual fund sector through the regulatory and policy framework. Certain initiatives have been taken in the banking sector in order to enhance the rising market figures. Government initiatives for foreign trade have made ways for foreign investors to invest in the country’s rising markets. State department’s office of investment affairs has opened a lot of opportunities for investments and portfolios. The securities and exchange commission of Sri Lanka covers Colombo Stock exchange, Unit Trusts, stock brokers, listed public companies, margin traders, underwriters, investment managers, credit rating agencies and securities depositories.
Portfolio investments are encouraged in the country by certain government initiatives. Foreign trade regulations have been relaxed by the government in recent years. Foreign investors can purchase up to 100% of equity in Sri Lankan companies in numerous permitted sectors. In order to facilitate portfolio investment, country and regional funds may obtain SEC approval to invest in Sri Lanka’s stock market. These funds make transactions through share investments in external rupee accounts maintained in commercial banks.
The market has grown up till now and with improvements made clubbed with ones in the pipeline have assured the market growth in future. The principle institutions are functioning to cure the most practical mechanism existing in stock brokering firms and their branches. In this context, both SEC and CSE, the stock brokerage industry and the unit trust industry have decided to work together to expand the scope of the stock brokering industry to include other capital market products and strengthen their institutional capacity and professional skills to handle a wider range of products that include unit trusts.
the economy of Sri Lanka consist of a large capacity and a multitude of opportunities to be exploited in the banking financing sector with a need, desire and ability to overcome expected challenges in the future. The measures to be taken in the particular situation and time are the achievement resulting into financial stability. Many steps have been taken in the previous years and are still in the pipeline to be implemented in the coming years for better growth of the industry. The country has proved itself as a powerful nation that has the ability to control its destiny in the last decade during financial crisis and will continue to do so in the future.
“Sri Lanka Mutual Fund Sector Opportunity Outlook 2022” report highlights:
- Sri Lanka Financial Sector Overview
- Sri Lanka Unit Trust/Mutual Fund Market Overview
- Types of Unit Trusts/ Mutual Funds
- Funds & Fund Managers
- Rules for Unit Trust/ Mutual Fund Companies
1. WHAT ARE UNIT TRUSTS (MUTUAL FUND)?
2. TYPES OF UNIT TRUSTS (MUTUAL FUNDS) IN SRI LANKA
2.1 Types of Funds
2.1.1 Open Ended Funds
2.1.2 Closed Ended Funds
2.2 Types of Trust Units
2.2.1 Gilt Edged Funds
2.2.2 Indexed Funds
2.2.3 Income Funds or High Yield Funds
2.2.4 Balanced Funds
2.2.5 Growth Funds
2.2.6 Money Market Fund
2.2.7 Sector Funds
2.2.8 Sharia Funds
3. SRI LANKA FINANCIAL SECTOR OVERVIEW
4. SRI LANKA UNIT TRUST MARKET OVERVIEW
4.1 Current Market Scenario
4.2 Market Indicators
5. FUNDS & FUND MANAGERS IN SRI LANKA UNIT TRUST MARKET
5.1 Ceylon Asset Management Company Limited
5.2 Com Trust Asset Management (Private) Limited
6. FOREIGN INVESTMENT IN SRI LANKA UNIT TRUST (MUTUAL FUND) MARKET
7. SRI LANKA UNIT TRUST MARKET REGULATORY AUTHORITIES
7.1 Security and Exchange Commission
7.2 Unit Trust Association of Sri Lanka
7.3 Central Bank of Sri Lanka
8. RULES FOR UNIT TRUST/ MUTUAL FUND COMPANIES IN SRI LANKA
9. SRI LANKA UNIT TRUST MARKET DYNAMICS
9.1 Improved Economy
9.2 Government initiatives to the develop the industry
9.3 Demographic Factor
9.4 Digital Revolution
10. SRI LANKA UNIT TRUST MARKET CHALLENGES
11. SRI LANKA UNIT TRUST MARKET PEST ANALYSIS
11.1 Political Environment
11.2 Economic Environment
11.3 Social Environment
11.4 Technological Environment
12. SRI LANKA UNIT TRUST MARKET FUTURE FORECASTS 2022
13. COMPETITIVE LANDSCAPE
13.1 Ceylon Asset Management
13.2 Comtrust Asset Management (Pvt.) Limited
13.3 NDB Wealth Management Limited
13.4 Ceybank Asset Management (Pvt.) Limited
13.5 National Asset Management Limited
13.6 First Capital Asset Management Limited
13.7 Capital Alliance Limited
13.8 Candor Asset Management Pvt. Limited
13.9 Asset Trust Management
13.10 Guardian Acuity Asset management (Pvt.) Limited
14. LICENSED FINANCE COMPANIES & SPECIALIZED LEASING COMPANIES STATISTICS
14.1 Indicators
14.1.1 Capital Adequacy Ratio
14.1.2 Asset Quality
14.1.3 Profitability
14.1.4 Liquidity
14.2 Assets, Liabilities & Capital
14.2.1 Earnings and Profits
2. TYPES OF UNIT TRUSTS (MUTUAL FUNDS) IN SRI LANKA
2.1 Types of Funds
2.1.1 Open Ended Funds
2.1.2 Closed Ended Funds
2.2 Types of Trust Units
2.2.1 Gilt Edged Funds
2.2.2 Indexed Funds
2.2.3 Income Funds or High Yield Funds
2.2.4 Balanced Funds
2.2.5 Growth Funds
2.2.6 Money Market Fund
2.2.7 Sector Funds
2.2.8 Sharia Funds
3. SRI LANKA FINANCIAL SECTOR OVERVIEW
4. SRI LANKA UNIT TRUST MARKET OVERVIEW
4.1 Current Market Scenario
4.2 Market Indicators
5. FUNDS & FUND MANAGERS IN SRI LANKA UNIT TRUST MARKET
5.1 Ceylon Asset Management Company Limited
5.2 Com Trust Asset Management (Private) Limited
6. FOREIGN INVESTMENT IN SRI LANKA UNIT TRUST (MUTUAL FUND) MARKET
7. SRI LANKA UNIT TRUST MARKET REGULATORY AUTHORITIES
7.1 Security and Exchange Commission
7.2 Unit Trust Association of Sri Lanka
7.3 Central Bank of Sri Lanka
8. RULES FOR UNIT TRUST/ MUTUAL FUND COMPANIES IN SRI LANKA
9. SRI LANKA UNIT TRUST MARKET DYNAMICS
9.1 Improved Economy
9.2 Government initiatives to the develop the industry
9.3 Demographic Factor
9.4 Digital Revolution
10. SRI LANKA UNIT TRUST MARKET CHALLENGES
11. SRI LANKA UNIT TRUST MARKET PEST ANALYSIS
11.1 Political Environment
11.2 Economic Environment
11.3 Social Environment
11.4 Technological Environment
12. SRI LANKA UNIT TRUST MARKET FUTURE FORECASTS 2022
13. COMPETITIVE LANDSCAPE
13.1 Ceylon Asset Management
13.2 Comtrust Asset Management (Pvt.) Limited
13.3 NDB Wealth Management Limited
13.4 Ceybank Asset Management (Pvt.) Limited
13.5 National Asset Management Limited
13.6 First Capital Asset Management Limited
13.7 Capital Alliance Limited
13.8 Candor Asset Management Pvt. Limited
13.9 Asset Trust Management
13.10 Guardian Acuity Asset management (Pvt.) Limited
14. LICENSED FINANCE COMPANIES & SPECIALIZED LEASING COMPANIES STATISTICS
14.1 Indicators
14.1.1 Capital Adequacy Ratio
14.1.2 Asset Quality
14.1.3 Profitability
14.1.4 Liquidity
14.2 Assets, Liabilities & Capital
14.2.1 Earnings and Profits
LIST OF FIGURES
Figure 1-1: Working Mechanism of a Mutual Fund
Figure 1-2: Sri Lanka - Operating Structure of a Unit Trust/Mutual Fund
Figure 3-1: Sri Lanka - Total Assets of the Financial System
Figure 3-2: Sri Lanka - Distribution of Banks & their Branches
Figure 4-1: Sri Lanka - Mutual Fund Rate of Return (%) , 2011-2016
Figure 4-2: Sri Lanka - Inflation Rate
Figure 4-3: Sri Lanka - Mutual Fund Asset Market Distribution
Figure 4-4: Sri Lanka - Asset Allocation March’2016
Figure 4-5: Sri Lanka - Distribution of Fund types on the basis of Unit Holders
Figure 4-6: Sri Lanka - Interest Rates, 2016
Figure 4-7: Sri Lanka - Unit Trust/Mutual Fund Assets (US$ Million), 2014-2016
Figure 4-8: Sri Lanka - Open Ended Income Fund Assets (US$ Million), 2014-16
Figure 4-9: Sri Lanka - Open End Equity Index/ Sector Assets (US$ Million), 2014-16
Figure 4-10: Sri Lanka - Open End Growth Fund Assets (US$ Million), 2014-16
Figure 4-11: Sri Lanka - Open Ended-Gilt Edged Fund Assets (US$ Million), 2014-16
Figure 4-12: Sri Lanka - Open Ended Money Market Fund Assets (US$ Million), 2014-16
Figure 4-13: Sri Lanka - Open Ended Balanced Fund Assets (US$ Million), 2014-16
Figure 4-14: Sri Lanka - Open Ended Sharia Fund Assets (US$ Million), 2014-16
Figure 4-15: Sri Lanka - Open Ended Sharia Money Market Fund Assets (US$ Million), 2014-16
Figure 4-16: Sri Lanka - Open Ended IPO Fund Assets (US$ Million), 2014-16
Figure 4-17: Sri Lanka - Closed End Listed Equity Mutual Fund Growth Fund Assets (US$ Million), 2014-16
Figure 7-1: Organizational Structure - Central Bank of Sri Lanka
Figure 9-1: Sri Lanka - Distribution of GDP, 2015
Figure 9-2: Sri Lanka - Internet Usage, 2005-2015
Figure 12-1: Sri Lanka Unit - Trust/Mutual Fund Assets (US$ Million), 2017 & 2022
Figure 1-1: Working Mechanism of a Mutual Fund
Figure 1-2: Sri Lanka - Operating Structure of a Unit Trust/Mutual Fund
Figure 3-1: Sri Lanka - Total Assets of the Financial System
Figure 3-2: Sri Lanka - Distribution of Banks & their Branches
Figure 4-1: Sri Lanka - Mutual Fund Rate of Return (%) , 2011-2016
Figure 4-2: Sri Lanka - Inflation Rate
Figure 4-3: Sri Lanka - Mutual Fund Asset Market Distribution
Figure 4-4: Sri Lanka - Asset Allocation March’2016
Figure 4-5: Sri Lanka - Distribution of Fund types on the basis of Unit Holders
Figure 4-6: Sri Lanka - Interest Rates, 2016
Figure 4-7: Sri Lanka - Unit Trust/Mutual Fund Assets (US$ Million), 2014-2016
Figure 4-8: Sri Lanka - Open Ended Income Fund Assets (US$ Million), 2014-16
Figure 4-9: Sri Lanka - Open End Equity Index/ Sector Assets (US$ Million), 2014-16
Figure 4-10: Sri Lanka - Open End Growth Fund Assets (US$ Million), 2014-16
Figure 4-11: Sri Lanka - Open Ended-Gilt Edged Fund Assets (US$ Million), 2014-16
Figure 4-12: Sri Lanka - Open Ended Money Market Fund Assets (US$ Million), 2014-16
Figure 4-13: Sri Lanka - Open Ended Balanced Fund Assets (US$ Million), 2014-16
Figure 4-14: Sri Lanka - Open Ended Sharia Fund Assets (US$ Million), 2014-16
Figure 4-15: Sri Lanka - Open Ended Sharia Money Market Fund Assets (US$ Million), 2014-16
Figure 4-16: Sri Lanka - Open Ended IPO Fund Assets (US$ Million), 2014-16
Figure 4-17: Sri Lanka - Closed End Listed Equity Mutual Fund Growth Fund Assets (US$ Million), 2014-16
Figure 7-1: Organizational Structure - Central Bank of Sri Lanka
Figure 9-1: Sri Lanka - Distribution of GDP, 2015
Figure 9-2: Sri Lanka - Internet Usage, 2005-2015
Figure 12-1: Sri Lanka Unit - Trust/Mutual Fund Assets (US$ Million), 2017 & 2022
LIST OF TABLES
Table 3-1: Public Debt Department: Government Securities Secondary Market Trade Summary
Table 3-2: Sri Lanka - Licensed Finance Companies and Specialized Leasing Companies Sector
Table 3-3: Sri Lanka - Licensed Finance Companies Sector
Table 3-4: Specialized Leasing Companies Sector
Table 14-1: Sri Lanka - Licensed Finance Companies & Specialized Leasing Companies Borrowings & Capital Ratio
Table 14-2: Sri Lanka - Licensed Finance Companies Borrowings & Capital Ratio
Table 14-3: Sri Lanka - Specialized Leasing Companies Borrowings & Capital Ratio
Table 14-4: Sri Lanka - Assets Quality of Licensed Finance Companies & Specialized Leasing Companies Sector
Table 14-5: Sri Lanka - Assets Quality of Licensed Finance Companies
Table 14-6: Sri Lanka - Assets Quality of Specialized Leasing Companies
Table 14-7: Sri Lanka - Licensed Finance Companies & Specialized Leasing Companies Return on Assets
Table 14-8: Sri Lanka - Licensed Finance Companies Return on Assets
Table 14-9: Sri Lanka - Specialized Leasing Companies Return on Assets
Table 14-10: Sri Lanka - Licensed Finance Companies & Specialized Leasing Companies Sector Assets Indictors
Table 14-11: Sri Lanka - Licensed Finance Companies Assets Indictors
Table 14-12: Sri Lanka - Specialized Leasing Companies Assets Indictors
Table 14-13: Sri Lanka - Licensed Finance Companies and Specialized Leasing Companies Sector Earning & Profit
Table 14-14: Sri Lanka - Licensed Finance Companies Earning & Profit
Table 14-15: Sri Lanka - Specialized Leasing Companies Earning & Profit
Table 3-1: Public Debt Department: Government Securities Secondary Market Trade Summary
Table 3-2: Sri Lanka - Licensed Finance Companies and Specialized Leasing Companies Sector
Table 3-3: Sri Lanka - Licensed Finance Companies Sector
Table 3-4: Specialized Leasing Companies Sector
Table 14-1: Sri Lanka - Licensed Finance Companies & Specialized Leasing Companies Borrowings & Capital Ratio
Table 14-2: Sri Lanka - Licensed Finance Companies Borrowings & Capital Ratio
Table 14-3: Sri Lanka - Specialized Leasing Companies Borrowings & Capital Ratio
Table 14-4: Sri Lanka - Assets Quality of Licensed Finance Companies & Specialized Leasing Companies Sector
Table 14-5: Sri Lanka - Assets Quality of Licensed Finance Companies
Table 14-6: Sri Lanka - Assets Quality of Specialized Leasing Companies
Table 14-7: Sri Lanka - Licensed Finance Companies & Specialized Leasing Companies Return on Assets
Table 14-8: Sri Lanka - Licensed Finance Companies Return on Assets
Table 14-9: Sri Lanka - Specialized Leasing Companies Return on Assets
Table 14-10: Sri Lanka - Licensed Finance Companies & Specialized Leasing Companies Sector Assets Indictors
Table 14-11: Sri Lanka - Licensed Finance Companies Assets Indictors
Table 14-12: Sri Lanka - Specialized Leasing Companies Assets Indictors
Table 14-13: Sri Lanka - Licensed Finance Companies and Specialized Leasing Companies Sector Earning & Profit
Table 14-14: Sri Lanka - Licensed Finance Companies Earning & Profit
Table 14-15: Sri Lanka - Specialized Leasing Companies Earning & Profit
