ASTRUE Active Income Fund



Investment Objective

To provide a steady income and moderate level of capital appreciation whilst maintaining a relatively low to medium level of volatility.

Why Astrue Active Income Fund?

The ASTRUE Active Income Fund aims to improve the risk/return profile of traditional fixed income strategies by utilizing non-traditional asset classes apart from standard fixed deposits. This Fund does this by employing an active approach to investing in fixed income securities that involves adding exposure to listed/unlisted high-yield debt with either an issuer rating or instrument rating of not less than BBB-. Our fixed income investment managers are primed to find the optimal asset mix that provides a more attractive yield-to-risk ratio compared to that of intermediate term treasury bonds whilst providing a regular stream of dividend income annually.

Who is this fund suitable for?

The ASTRUE Active Income Fund is ideally suited for Individuals, Senior Citizens, Professionals, Entrepreneurs, the Business Community, Private Provident Funds, Insurance Companies and Retiring Employees seeking dependable options to invest their Terminal Benefits.

Who can invest?

  • Citizens of Sri Lanka, individually or jointly.
  • Companies and institutions incorporated in Sri Lanka.
  • Approved provident funds, pension funds.
  • Non-Resident Sri Lankans (under schemes approved by the relevant authority)
  • Citizens of foreign states, whether resident in or outside Sri Lanka, companies with limited liability or corporate bodies established or incorporated outside Sri Lanka (subject to approval of the Department of Foreign Exchange, Central Bank and the Commission).
  • Minors as the first holder when applied jointly with a parent, legally appointed guardian or curator.

Investment strategy

ATML exercises a client-first approach to fixed income portfolio management by only investing in fixed income securities that deliver a steady flow of income with low to medium levels of risk and volatility.
 

  • Cash or near cash.
  • Treasury Bills issued by the Government of Sri Lanka.
  • Treasury Bonds issued by the Government of Sri Lanka.
  • Any other securities issued by the Government or Central Bank of Sri Lanka.
  • Any other securities guaranteed by the Government of Sri Lanka.
  • Repurchase agreements in relation to such Treasury Bills, Treasury Bonds and Government securities.
  • Commercial Paper, Promissory Notes, Asset Backed Paper, Debentures or any other debt security which have either an issuer rating or instrument rating of not less than BBB-.
  • Deposits with any Commercial Banks or any Licensed Specialized Banks which has a rating of not less than BBB-.
  • Any repurchase agreements relating to such paper, notes, debentures and securities.
  • Any other security authorized by the Securities and Exchange Commission of Sri Lanka from time to time.

The ASTRUE Active Income Fund shall not make investments in Equity or in instruments that may be subject to conversion to equity in the future.


Our fixed income investment managers will actively seek investment returns and work to minimize risks by ensuring that the investment funds managed are constructed with diverse maturity tenures, which further facilitates minimizing risk in a volatile interest rate environment. The maturity instruments and entities would be determined by the managers based on prevalent economic and market conditions. The managers will further strive to boost the overall returns of the fund by realizing capital gains.

Fund details

Nature of the FundOpen Ended
Trustee/CustodianHatton National Bank PLC
Investment objectiveTo provide a steady income and moderate level of capital appreciation whilst maintaining a relatively low to medium level of volatility.


Asset Classes

 
  • Government securities–Treasury Bills and Treasury Bonds
  • Government guaranteed securities
  • Repurchase agreements in relation to such Treasury Bills,Treasury Bonds and Government Guaranteed securities.
  • Fixed/ Term Deposits of Commercial Banks, Licensed Specialized Banks and Registered Finance Companies
  • Commercial Papers, Asset Backed Paper
  • Debentures and Asset Backed Securities
  • Repurchase agreements backed by such papers, notes,debentures and securities
Minimum initial investment Rs.10,000/- and in multiples of Rs.1,000/- thereafter
Launch date1st January 2021
Front-End FeeNil
Exit FeeNil
Management Fee0.50% p.a. on the Net Asset Value of the fund
Trustee Fee0.20% p.a. on the Net Asset Value of the fund
Custodian FeesRs.20,000/- per month

Asset allocation

Last updated: 2024-04-30

Maturity profile

Last updated: 2024-04-30

Credit rating

Last updated: 2024-04-30

Fund performances

Last updated: 2024-04-30

Reports

Fact Sheets
Interim Reports
Annual Reports

Downloads

Key Investor Information Document

pdf

ASTRUE Active Income Fund - KIID

Download

Application Forms

pdf

Email/Fax Indemnity Form

Download
pdf

Know Your Customer Form

Download
pdf

Client Application

Download

FAQs

01 What is a mutual fund?

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A mutual fund is an independent legal entity that pools money from many investors and invests this money in various securities such as stocks, bonds, and short-term debt. The combined holdings of a mutual fund are known as its portfolio. Investors are able to buy units in mutual funds. Each unit represents an investor’s part ownership in the fund and is proportionate to the returns generated by the fund as a whole.

02 Why invest in unit trust funds?

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Unit trust funds are similar to mutual funds, and are an increasingly popular choice among investors because of the following features:
 

  • Professionally-managed: Units trusts are managed by professional fund managers who will select the most ideal securities and monitor their performance. It is their responsibility to do the research on your behalf.
  • Diversification or “Don’t put all your eggs in one basket.”: Mutual funds typically invest across a range of companies and industries, thereby helping to lower risk in case one company or industry fails.
  • Affordability: Most mutual funds have a relatively low rupee amount required for initial investment and subsequent purchases.
  • Liquidity: Mutual fund investors can easily redeem their units at any time for the current net asset value (NAV) plus any redemption fees.

03 How safe is my money?

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ATML (Asset Trust Management Pvt Ltd) is an investment management and scheme management company incorporated in 2008, and licensed by the SEC (Securities and Exchange Commission of Sri Lanka). The primary objective of the company is to provide investment portfolio management services, manage schemes and other related services to our clients.

 

The company and funds are regulated by the SEC while Hatton National Bank PLC acts as the trustee and custodian for the funds. Hatton National Bank PLC, as the fund’s trustee, will exercise due diligence and vigilance over the fund with their sole objective being safeguarding the interest of the Unit Holders. The Trustee, as the legal owner of the Fund’s assets, will be responsible to ensure that the Fund is managed by the managing company in accordance with all SEC guidelines.

04 Who can invest in Unit Trust Funds?

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  • Citizens of Sri Lanka, individually or jointly.
  • Companies and institutions incorporated in Sri Lanka.
  • Approved provident funds, pension funds
  • Non-Resident Sri Lankans (under schemes approved by the relevant authority)
  • Citizens of foreign states, whether resident in or outside Sri Lanka, companies with limited liability or corporate bodies established or incorporated outside Sri Lanka (subject to approval of the Department of Foreign Exchange, Central Bank and the Commission).
  • Minors as the first holder when applied jointly with a parent, legally-appointed guardian or curator.

05 How can I know the performance of mutual fund schemes?

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The performance of a scheme is reflected in its NAV (Net Asset Value) which is disclosed on a daily basis on our website (www.atml.lk) as well as the DailyFT newspaper. The mutual funds also publish their own monthly factsheets, interim reports and annual reports with trustee approval.

06 What is the Net Asset Value (NAV) of a scheme?

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Mutual funds invest the money collected from investors in securities markets. The performance of a particular scheme of a mutual fund is denoted by its Net Asset Value (NAV). In simple words, NAV is the market value of the securities held by the scheme. Since the market value of securities are liable to change every day, the NAV of a scheme also varies on a day-to-day basis. The NAV per unit is the market value of the securities of a scheme divided by the total number of units of the scheme on any particular date.

07 How can I invest?

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Please use live chat to reach us online or you can always directly contact us using contact forms.


 

08 How can I withdraw my money?

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You can send a redemption request through our portal, by letter or just send us an email (if you have provided us with an email indemnity). Kindly note that we cannot remit funds to any third-party bank accounts.

09 Can I invest and withdraw on any day?

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Unit creations/redemptions can take place on any day except Weekends, Poya, Mercantile and Bank Holidays, subject to each fund’s cut-off times.

10 How can I transfer the money to you?

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Funds can be transferred electronically or deposited directly into each fund’s bank account at Hatton National Bank PLC. The original customer's copy of the bank deposit slip or electronic fund transfer document (proof of payment) must be sent to the fund managers together with the filled application form for units.

 

Alternatively, a person may attach a cheque to the filled application form and send it to the fund managers. All cheques and bank drafts must be made payable to the particular fund of your choice and crossed “ACCOUNT PAYEE ONLY”.

 

Kindly note that ATML does not accept any cash payments.

11 Will I get a confirmation/certificate for my investment?

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You will be emailed a transaction confirmation for each new investment on the following working day.

12 Are there any fees?

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The applicable fees are the Trustee Fee, Custodian Fee, Management Fee and Performance Fee (for Astrue Alpha & Astrue Active Income Funds only). These fees will be charged to the fund and not to individual investors.

13 If a mutual fund scheme winds up, what happens to the money invested?

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In case of the winding up of a scheme, the mutual funds will pay out a sum based on the prevailing NAV at the time, after adjustment for expenses. 

 

Either the Trustees or the Managers may - by not less than three (03) months’ notice given to other - with the concurrence of the Commission, decide to terminate the Trust. The party hereto terminating the Trust shall (unless the matter shall have been referred to arbitration) give notice thereof to all Holders and by such notice, fix the date at which such termination is to take effect which date shall not be less than three (03) months after service of such notice.

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Ready to invest? Talk to our expert team

Romello De Soyza

Mr. Romello De Soyza is a Senior Management Professional with over 35 years of experience in the Financial Markets including interbank money market, innovating instruments on Forex Swaps and forward rate agreements, dealing in treasury bills, bonds and repos, also on bond swaps. Possesses experience in corporate debt securities market, including structuring debt instruments.