This is our low-risk fund. It invests in a combination of Investment Grade rated Government securities & Corporate debt. It is independently rated ‘A’ by Fitch and ‘A+’ by ICRA. (For comparison purposes, Seylan Bank is rated ‘A’, Commercial Bank is rated ‘AA+’ and Union Bank is rated ‘BBB-‘ by Fitch). It has a fund size of approx. LKR 20Bn. It’s a slightly lower return but increased safety as it has a restriction for securities to be only investment grade quality and above. Additionally, it’s a larger fund and we can offer you liquidity within a short period of time, without any penalties.
This Fund is suitable for Investors who:
- requires liquidity
- are conservative and seek capital preservation
- seek reasonable returns that commensurate with the risks that the fund is permitted to take
Past performance is not an indication of future performance. Investors are advised to read and understand the contents of the explanatory memorandum before investing. The annualized return is variable and subject to change. The fund is licensed by the Securities Exchange Commission (SEC).
| Fees charged to the Fund | |
|---|---|
| Management Fee | 0.75% of the NAV |
| Custodian Fee | 201,600 per annum |
| Trustee Fee | 0.16% of the NAV |
| Other Expenses | 744,400 per annum |
Key risks of the fund
Investment in units is not a cash deposit and is not under the protection of the Deposit Insurance Scheme. Therefore, there is risk that investors may not receive the entire investment amount.
Eg: Default by issuers of the securities in the case that the issuer cannot pay the principal and interest as specified
Risk Rating of the Fund
Fitch Ratings has assigned a National Fund Credit Quality Rating of ‘Af(lka)’ and a National Fund Market Risk Sensitivity Rating of ‘S1(lka)’ to Capital Alliance Investment Grade fund. (Rating as at 04 May 2021)
ICRA Lanka Limited, subsidiary of ICRA Limited, a group company of Moody’s Investors Service, has assigned the rating of [SL] A+ (mfs) (pronounced as Sri Lanka A mutual fund scheme) to the CAL Investment Grade Fund. (Rating as at 20 Apr 2022)
Schemes with this rating are considered to have adequate degree of safety regarding timely receipt of payments from the investments that they have made.