Direct Contact

May 17, 2007 (LBO) – Sri Lankan unit trusts, which collectively have an investment fund of over five billion rupees, are seeking to popularise their instruments among less sophisticated investors. The island’s regulator, Securities and Exchange Commission, Wednesday pledged 13 million rupees to the Unit Trust Association to initiate public awareness campaigns on investing in unit trust products.

“We have been only advertising in papers before. We have to go to the people and make direct contact,” UTA Chairman S Jeyavarman told a news conference.

The funds will be utilised to raise awareness among the public on investing in the capital markets.

The UTA intends to use the funds in campaigns in which trained persons directly contact the public to educate them on the benefits of unit trusts, known as mutual funds in the United States.

Jeyavarman said the UTA aims to raise awareness in the informal sector in all parts of Sri Lanka, from the daily-wage earner to the less sophisticated investor.

The 13 investment schemes in the unit trust industry collectively control funds worth
5.2 billion rupees.

The schemes are divided into growth funds, which invest in equities, and