Ceylon Dollar Bond Fund (CDBF) investing in Sri Lanka Development Bonds (SLDBs), Dollar Sovereign and Bank Bonds, is now eligible to accept investments from any local individual or company.
All Personal Foreign Currency Account (PFCA) holders (formerly NRFC, RFC, RNNFC, SFIDA etc.) or Business Foreign Currency Account (BFCA) holders (formerly FEEA, Exporter’s Foreign Currency Accounts etc.) can now invest in the Fund.
CDBF, the only dollar denominated unit trust in Sri Lanka is approved by the Central Bank of Sri Lanka (CBSL) and is licensed and regulated by the Securities and Exchange Commission of Sri Lanka (SEC). Deutsche Bank AG is the Trustee and Custodian of the fund, which is managed by Ceylon Asset Management.
The fund reported a net return of 6.95%* in 2016 and 5.25%* in 2017, while the annualized return as at 28th February 2018 was 4.34%*. However, due to the recent political instability, the dollar SLDBs rates now yield over 6% per annum.
Previously limited to Sri Lankans living or working overseas, BOI companies and foreign investors, the fund is now open to any investor from US$ 1,000 upwards. The open-ended fund structure enables an easy exit whenever investors require, without being locked-in for a fixed period.