National Equity Fund (NEF) a flagship fund launched first in Sri Lanka and managed by National Asset Management Limited (NAMAL) has declared 75 cents per unit as dividend payment to its investors on March 22, for the year 2001/2002. A press release says that together with the current dividend, the fund has declared a cumulative dividend of Rs. 8.75 from the inception. NEF was able to declare a higher dividend this year in comparison to the previous year’s dividend of 55 cents per unit as the Fund’s investments yielded better returns during this period.

"The Fund was able to generate better returns from its share investments due to improvement in share prices and dividend whereas interest income also improved from the fixed income investments of the fund as the fund was able to take advantage from the overall interest rates hike of over 20% p.a. recently," the release said.

"NEF distributed Rs. 0.40, and Rs. 0.55 in March 2000 and 2001 respectively. The current dividend of Rs. 0.75 is an improvement over its last two year dividends". "Although the stock market showed growth in the recent past, the economic environment both in the domestic front and globally remained adverse. With the changes in the domestic front and the ongoing accelerated peace initiatives of the new government, we expect the stock market to revive more rapidly than before. We believe, the economic revival with focused policies is paramount to create a sustainable growth in the private sector," said NAMAL CEO S. Jeyavarman.

"Fund managers at NAMAL continue to monitor recent developments in the domestic front and its possible impacts on the stock market and in the overall macro economy. Our investment strategy remains more towards "conservative" due to the prevailing macro condition in the country" he said.

"The fund adopted a strategy of reducing the overall risks associated with the financial markets to both debt and equity, while concentrating on securities which offer good value. This would enable investors reap higher returns in the future," said NAMAL Fund Manager P. Samarasekera.

The net asset value of the fund had improved 47.17% during the period April 1, 2001 and March 27, 2002. In this period the All Share Price Index (ASPI) had moved up by 45.75%.

NAMAL is owned by DFCC Bank, People’s Bank, Employees Trust Fund Board and the Asian Development Bank. NAMAL is the pioneer fund manager and launched the NEF in December 1991. NAMAL also manages the NAMAL Growth Fund, NAMAL Income Fund and the NAMAL Optima Fund.