Investor Products

About Unit Trust

A Unit Trust is a portfolio of investments created by investing funds subscribed by investors through the purchase of units of an investment fund. The SEC Act defines a Unit Trust as “unit trust means any arrangement made for the purpose, or of having the effect, of providing for the participation by persons as beneficiaries under a trust, in profits or income and capital gains arising from the acquisition, holding, management or disposal of securities or any other property vested in the trustee or such trust”. When an investor invests in a Unit Trust, the Unit Trust issues units to the investors in proportion to the amount invested in the fund. Units Trust acts as a conduit through which unsophisticated investors can reap the benefits of investing in the capital market. Unit Trusts were introduced to Sri Lanka in 1991.

Regulation of Unit Trusts in Sri Lanka

A Unit Trust Managing Company is licensed to operate a Unit Trust under the Securities and Exchange Commission of Sri Lanka Act No. 36 of 1987 as amended by Act No. 26 of 1991, No. 18 of 2003 and No. 47 of 2009 (SEC Act). Such managing company is required to comply with the terms and conditions applicable to a Managing Company of a Unit Trust as stipulated in terms of Part IV of the Schedule to the SEC Act to obtain such licence and will be governed and regulated by the following;

Managing Companies of Unit Trusts licenced to operate a Unit Trust as at 31st May 2020

  1. Ceylon Asset Management Company Limited
  2. Comtrust Asset Management (Private) Limited
  3. NDB Wealth Management Limited
  4. Ceybank Asset Management (Pvt) Limited
  5. National Asset Management Limited
  6. First Capital Asset Management Limited
  7. J B Financial (Pvt) Ltd
  8. Guardian Acuity Asset Management Ltd
  9. Candor Asset Management (Pvt) Ltd
  10. Asset Trust Management (Pvt) Ltd
  11. Capital Alliance Investments Ltd
  12. Arpico Ataraxia Asset Management (Private) Limited
  13. Premier Wealth Management Ltd
  14. Assetline Capital (Pvt) Ltd
  15. Softlogic Asset Management (Pvt) Ltd

Unit Trust on Sri Lanka Real Estate Investment Trusts (SL-REITs)

A SL-REIT Managing Company is licensed to operate a SL-REIT under the Securities and Exchange Commission of Sri Lanka Act No. 36 of 1987 as amended by Act No. 26 of 1991, No. 18 of 2003 and No. 47 of 2009 (SEC Act). Such managing company is required to comply with the terms and conditions applicable to a Managing Company of a Unit Trust as stipulated in terms of Part IV of the Schedule to the SEC Act to obtain such licence and will be governed and regulated by the following;

SL-REITs are an alternative investment scheme, which offers investors an opportunity to invest in the real estate asset class without having to make direct investments in property. A SL-REIT is a portfolio of investments in property created by investing funds subscribed by investors through the purchase of units of a SL-REIT. SL-REITs are expected to generate income by owning and leasing income- generating property in addition to property value appreciation over a long period. SL-REITs offer the opportunity for investors to earn returns from property with a small sum of money and enjoy the income and capital appreciation over a long period of time.