Business

Softlogic Invest Money Market Fund rated ‘(SL)A mfs’ by ICRA

The asset management arm of the Softlogic Group, Softlogic Invest announced that their Money Market Fund has been assigned a rating of “(SL)A mfs” (Sri Lanka A-rated mutual fund scheme) by ICRA Lanka Ltd.

The fund that commenced operations in July 2020 has performed well despite the obstacles of the pandemic, and as of 25 March 2021, the Softlogic Money Market Fund has surpassed Rs. 1.5 billion in assets under management with over 1,300 unitholders, delivering an annualised current yield of 7.40%. These returns are delivered while maintaining over 80% in category A investments, which include A, A-, and AA+ instruments.

“We are delighted that as a brand new entrant to the unit trust mutual fund business, the Softlogic Money Market Fund received an exceptional rating of ICRA (SL)A. When managing external funds, we felt that showing return against risk is imperative to prospective investors as pure-play yield comparison is simply not informative enough to our investor base. We are keen on educating our investors on the value, transparency, and significance of this external rating by ICRA through all our client communications,” stated Softlogic Invest Chief Executive Officer (CEO) and Director Niloo Jayatilake.

Commenting on the significance of the rating, Softlogic Invest Portfolio Manager Daham Hettiarachchi opined: “This outstanding rating signifies our attempt to deliver optimum returns given the current low-rate environment and Covid challenges. We adopt a more conservative strategy when allocating funds whilst ensuring that our unit holders are able to access attractive returns. With this approach, we are currently delivering a return well above traditional non-bank fixed deposit rates and savings rates. Therefore, our investors enjoy optimum yield compared to traditional NBFI (non-banking financial institution) fixed deposit rates whilst enjoying the flexibility of withdrawal at any time they want without any charges. We believe customer convenience and access to funds is paramount to grow Industry volumes.”

ICRA Lanka’s mutual fund rating methodology is based on evaluating the inherent credit quality of the fund’s portfolio. Schemes with this rating are considered to have adequate degree of safety regarding timely receipt of payments from the investments that they have made.