Post war Sri Lanka has left many retail investors with little access to the upside offered in the IPO market.
NDB AVIVA Wealth Management Limited offers retail investors the unique opportunity to enjoy the advantages of preferential allocations in many IPOs yet to be offered in the local market through the special 10% allocation granted to Unit Trusts by the Securities and Exchange Commission of Sri Lanka.
The Eagle Growth Fund and Eagle Growth & Income Fund managed by NDB AVIVA Wealth Management are currently the only qualifying funds in Sri Lanka able to take advantage of this exclusive prospect.
The increasing leverage towards the IPO’s in the post war economy saw small retail investors being edged out by corporate entities and high net-worth individuals, with access to bank guarantees, resulting in poor allocations. Massive levels of over-subscriptions seen on many ‘hot’ IPOs have also resulted in meager allotments to the retail investor who has subsequently not been able to reap the benefits of the post IPO price increases.
The Securities & Exchange Commission of Sri Lanka promptly took action to rectify the situation by enabling a priority access to retail investors by mandating minimum allotments of 40% for direct retail applicants and 10% for retail applicants through Unit Trusts.
The Eagle Growth Fund and Eagle Growth and Income Fund are currently the only mutual funds qualified for this concession, and have already invested in selected IPO’s that were listed on the CSE.
NDB AVIVA Wealth Management, the management company of the Eagle Growth Fund and the Eagle Growth & Income Fund, is highly focused on research based investing and ensures its clients funds are invested in the quality companies with good long term profit potential. A fund performance of 117.8% and 101.5% in 2009 and 2010 respectively for the Growth Fund and 121.9% and 94.6% in 2009 and 2010 respectively for the Growth and Income Fund has ranked these funds as top performers among unit trusts, in Sri Lanka.
A joint venture between NDB Bank, Sri Lanka and AVIVA International Holdings, U.K., NDB AVIVA Wealth Management Limited is the largest private sector Fund Management Company in Sri Lanka with approximately Rs. 50.0 billion funds under management. The company has an exemplary track record of over 18 years and having a highly qualified and experienced team of professionals assisted by best in class systems.