Breaking Boundaries

Seylan Bank on Tuesday tied up with Australias Tyndall Investment Management to launch Sri Lankas first ever international bond fund.
Initially, the new fixed-income Seylan International Bond Fund will manage US$ 16 mn of Seylan Banks foreign currency assets of over US$ 50 mn.rn

rnWith over A$ 9 bn under its management, Tyndall is a member of UKs Royal & SunAlliance Group. Acting as an investment manager, Tyndall specialises in Australian shares, Australian and international fixed interest, and property.rn

rnTyndall will use its 75 years of industry expertise to help Seylans bond fund to trade in the overseas futures market, says Tyndalls Executive Bond Manager, Ross Gustafson.rn

rnldblquote The tie up helps Seylan develop it in house expertise, global investment management skills and prudent risk control measures,
dblquote Gustafson said.rn

rnThe first stage of a multi-year programme, the launch enables Seylan to diversify and add value to its foreign currency assets under its management.rn

rnSeylans offshore banking unit currently gives two percent return over the London interbank offered rate (LIBOR).rn

rnSeylan chief Rohini Nanayakkara said the fund is expected to give a return of around three percent over the LIBOR. rn

rnThe offshore unit lends to local BOI firms and invests in various approved investments like the recent Sri Lanka Development Bonds.rn