Softlogic Invest Money Market Fund rated [SL] A mfs by ICRA
Softlogic Invest, the fastgrowing asset management arm of the Softlogic group, is pleased to announce that its money market fund has been assigned a rating of ‘[SL] A mfs’ (Sri Lanka A rated mutual fund scheme) by ICRA Lanka Limited.
The fund that commenced operations in July 2020 has performed well despite the obstacles of the pandemic and as of March 25, 2021, the Softlogic Money Market Fund has surpassed Rs.1.5 billion in assets under management with over 1,300 unit holders, delivering an annualised current yield of 7.40 percent. These returns are delivered while maintaining over 80 percent in category A investments, which include A, A-, AA+ instruments.
“We are delighted that as a brandnew entrant to the unit trust mutual fund business, the Softlogic Money Market Fund received an exceptional rating of ICRA SL A. When managing external funds we felt that showing return against risk is imperative to prospective investors as pureplay yield comparison is simply not informative enough to our investor base. We are keen on educating our investors on the value, transparency and significance of this external rating by ICRA through all our client communications,” stated Softlogic Invest Chief Executive Officer and Director Niloo Jayatilake.
Launched in July 2020, Softlogic Money Market Fund is an openended unit trust fund approved by the Securities and Exchange Commission of Sri Lanka (SEC). The fund invests in government Treasury bills, bonds and other government securities, investment grade corporate debt securities such as debentures, commercial papers, securitisation papers and repurchase agreements with maturities of less than one year, which can be readily convertible to cash. The overall objective of the fund is to earn a return of interest income while preserving investor capital and liquidity.
Commenting on the significance of the rating, Softlogic Invest Portfolio Manager Daham Hettiarachchi opined, “This outstanding rating signifies our attempt to deliver optimum returns, given the current low rate environment and COVID challenges. We adopt a more conservative strategy when allocating funds whilst ensuring that our unit holders are able to access attractive returns. With this approach, we are currently delivering a return well above traditional non-bank fixed deposit rates and savings rates. Therefore, our investors enjoy optimum yield compared to traditional NBFI fixed deposit rates whilst enjoying the flexibility of withdrawal at any time they want without any charges. We believe that customer convenience and access to funds is paramount to grow industry volumes.”