Mutual Benefits

February 22 (LBO) – A tax-efficient closed-end fixed income mutual fund launched by National Asset Management (NAMAL) is already attracting commitments from the corporate sector, officials said. But monetary policy has been tightened since December, sending market interest rates shooting up.

The NAMAL Flexi Income Fund will invest mostly in better yielding corporate bonds and asset -backed securities which pay a premium over the risk free rate, NAMAL's Ian Ferdinandas said.

Marketed as Sri Lanka's first closed-end unit trust, the Flexi Income Fund will run for two years, and pay quarterly dividends.

"This is really a 2-year corporate bond with a quarterly coupon, structured as a tax-efficient unit trust," says fund manager Prabodha Samarasekera.

Tax Efficiency

Income from the fund dividends would be totally tax free in the hands of unit holders, unlike corporate bonds or government bonds interest which are taxed at 35 percent.

The fund will open February 26th and close on March 07 unless oversubscribed earlier. A company th

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