The fast-growing asset management arm of the Softlogic Group, Softlogic Invest ispleased to announce that their Money Market Fund has been assigned a rating of “[SL] A mfs” (SriLanka A rated mutual fund scheme) by ICRA Lanka Limited.
The fund that commenced operations inJuly 2020 has performed well despite the obstacles of the pandemic and as of 25th March, 2021, theSoftlogic Money Market Fund has surpassed Rs. 1.5 billion in Assets under Management with over1,300unitholders, delivering an annualized current yield of 7.40%. These returns are delivered whilemaintaining over 80% in category A investments, which include A, A-, AA+ instruments.
“We are delighted that as a brand new entrant to the Unit Trust Mutual Fund business, the SoftlogicMoney Market Fund received an exceptional rating of ICRA SL A. When managing external funds wefelt that showing return against risk is imperative to prospective investors as pure-play yieldcomparison is simply not informative enough to our investor base. We are keen on educating ourinvestors on the value, transparency and significance of this external rating by ICRA through all ourclient communications,” stated Softlogic Invest Chief Executive Officer and Director NilooJayatilake.
Launched in July 2020, Softlogic Money Market Fund is an open-ended Unit Trust Fund approvedby the Securities and Exchange Commission of Sri Lanka (SEC). The fund invests in governmenttreasury bills, bonds and other government securities, investment grade corporate debt securitiessuch as debentures, commercial papers, securitization papers and repurchase agreements withmaturities of less than one year which can be readily convertible to cash. The overall objective ofthe 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 DahamHettiarachchi opined, “This outstanding rating signifies our attempt to deliver optimum returnsgiven the current low-rate environment and COVID challenges. We adopt a more conservative strategywhen allocating funds whilst ensuring that our Unit holders are able to access attractive returns. Withthis approach, we are currently delivering a return well above traditional non-bank fixed depositrates and savings rates. Therefore, our investors enjoy optimum yield compared to traditional NBFIfixed deposit rates whilst enjoying the flexibility of withdrawal at any time they want without anycharges. We believe that customer convenience and access to funds is paramount to grow Industryvolumes.”
ICRA Lanka’s mutual fund rating methodology is based on evaluating the inherent credit quality ofthe fund’s portfolio. Schemes with this rating are considered to have adequate degree of safetyregarding timely receipt of payments from the investments that they have made. The credit riskratings incorporate ICRA Lanka’s assessment of a debt fund’s published investment objectives andpolicies, its management characteristics, and the creditworthiness of its investment portfolio. Theorganisation reviews relevant fund information on an ongoing basis to support its published ratingopinions.