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Ceylon Dollar Bond Fund delivers 10.3% dollar return in 2019

The Ceylon Dollar Bond Fund that invests exclusively in Sri Lankan government issued International Sovereign Bonds (ISB), and SLDBs reported a strong US$ performance of 10.3% in 2019 to investors, while the fund size reached US$ 23 million as at 31 December, 2019, according to Ceylon Asset Management Managing Director, Dulindra Fernando. The January 2020 performance was 1.03% (annualised 12.18%).
Ceylon Asset Management competes with international USD bond managers in operating the Ceylon Dollar Bond Fund (CDBF), Sri Lanka’s first international sovereign bond fund that navigates global market conditions. The SL ISB rates were influenced last year by two US Federal Reserve rate cuts, the Easter bombing and a Presidential election.

“We expect Sri Lanka risk to mitigate following April elections. Declining bond yields provide an opportunity for investors to make capital gains on long term bonds. We anticipate that foreign and Sri Lankan investors alike will exploit this opportunity to secure attractive SL sovereign bond returns going forward’’ Fernando stated.