The First Capital Wealth Fund (FCWF), First Capital Group’s fixed income unit trust, has declared a dividend of Rs 100 per unit for 2013-14, the fourth dividend since the Fund’s launch in October 2010.
The dividend, which partly represents a 15.49 percent return per annum net of tax for the last financial year, makes the ‘First Capital Wealth Fund’ the best performing fixed income unit trust in the country for 2013, the Fund’s manager First Capital Asset Management (FCAM) said.
The Fund, which invests exclusively in high quality corporate debt and Government Securities, crossed Rs 1 billion in net asset value in 2013.
Since its launch, the First Capital Wealth Fund has paid out Rs 212 million in dividends. The number of units at the end of 2013 stood at 849,223.06.
“Our ability to significantly outperform the one year Treasury bill rate is attributable to prudent management, identifying market opportunities and capitalising on interest rate fluctuations,” said Dilshan Wirasekara, Deputy CEO of First Capital Holdings. “With fixed income unit trusts, it all comes down to skill in managing movements of the yield curve.”
As one of the unit trusts in Sri Lanka managed by a debt market specialist and a primary market player in both government and corporate debt securities, the First Capital Wealth Fund is well positioned to make timelier and better informed investments than similar funds, and can generate better yields through the absence of intermediaries, he added.
The Fund’s units were priced at Rs 1,000 each at launch, and the minimum initial subscription in the Fund was Rs. 100,000. Unit holders may redeem units through the manager at any time, enjoying seamless liquidity, and dividends are tax free in the hands of investors.
Regulated by the Securities and Exchange Commission (SEC) and supported by the Trustee services of the Bank of Ceylon (BoC), the Fund’s manager First Capital Asset Management is a SEC approved fund manager specialising in managing wealth for high net worth individuals as well as for trusts, provident funds and companies. As part of a group with high visibility and understanding of the financial markets, FCAM is able to offer tax efficient customised investment solutions for individuals as well as for corporate entities.