“Alpha plus”, Sri Lanka’s first dual return investment plan is now available to investors as a result of a partnership between Alliance Finance PLC and Guardian Acuity Asset Management (GAAM), a leading Unit Trust Management Company which is part of Carson Cumberbatch PLC, HNB and DFCC banks.
“Alpha Plus is a dual return investment plan, where plan funds are invested in both Fixed Deposits and in Equity, thereby giving investors exposure to returns of two asset classes, with a single investment. The recommended mix of investment being 70% in Fixed Deposits and 30% in Equity”, explained Asanka Jayasekara , Fund Manager with GAAM
A dual return enables the investor to benefit from both fixed deposits as well as equity funds as the investment plan invests in both fixed deposits and equity, hence the return to investors will stem from these two sources, making it a dual return investment plan.
When an investor invests money in the Alpha Plus plan, a Fixed Deposit will be opened with Alliance Finance with a portion of the money and the balance will be allocated towards the “Guardian Acuity Equity Fund”, which will be managed by a specialized fund manager.
“The recommended investment plan is to invest a minimum of Rs 2.5 million for a period of three years, with an investment mix of fixed income of 70% and equity 30%. However although this is the recommended mix, the plan is flexible to suit an individual’s risk/return profile. Alpha Plus was initiated with the objective to create an opportunity for customers to yield a better return for their investments in the capital market in line with Alliance Finance’s triple bottom line concept.”, said Emmanuel Muttupulle Chief Operations Officer at Alliance Finance Company PLC.
The benefits of investing in ‘Alpha Plus’ include a potential higher return, stemming from attractive FD Rates (based on rates offered for AFC deposits) and Equity returns (based on performance of GAAM equity unit trust portfolio), while the investment will be in the hands of skilled professionals who have a long term proven track record to their credit . Investors will also have the opportunity to diversify their investment portfolio, while having a hassle free investment experience with regular updates on returns, as well as a tax efficient investment given that Unit Trust returns are tax free in the hands of unit holders. The fixed deposit can be used as a source of income with interest withdrawals or the interest can be retained along with the equity investment to add to capital appreciation.
‘Alpha Plus’ is open to both corporates and individuals who seek a long term exposure to the equity markets while at the same time enjoy a guaranteed long term fixed deposit return” said Roshan Fernando Guardian Acuity’s Manager Business Development who is responsible for servicing the Alliance Finance clientele . “While we recommend that investors stay invested for the entire period to earn the maximum benefit from equity investments, investors always have the options for early withdrawals from both the FD and the equity investment in case they have an unforeseen cash requirement. A 2% early withdrawal fee will be charged if investors pull out their money from the equity fund before the end of the 1st year of the investment, but otherwise we have no front end or exit fees” he further said. Although early redemption is not recommended since equity returns can be volatile. “Furthermore the returns from the equity fund are tax free in the hands of the investor” he noted.
Incorporated in 1956, Alliance Finance is built on the fundamental values of trust and integrity with a shared vision to foster growth. As a long serving provider of trusted financial services in the country, offering optimal investment solutions to their valued customers has always been a top priority of AFC while the company has focused equally on People, Planet and Profit, committing the company towards the concept of triple bottom line.
Guardian Acuity Asset Management (GAAM), is a leading Unit Trust Management Company accredited by the Securities and Exchange Commission of Sri Lanka. Guardian Acuity Asset Management is a joint venture between Ceylon Guardian Investment Trust PLC (a subsidiary of Carson Cumberbatch PLC) and Acuity partners (Pvt) Ltd. (a joint venture between HNB and DFCC Banks).
The investment processes is made easy with the product available in select branches of Alliance Finance and investors can also contact their relevant relationship manager. (Media Release)