The purpose of this Investment Policy Statement is to establish a clear understanding between the investors of Serendib Growth Investment Ltd (SGIL) and Kenanga Investment Corporation Ltd (KICL), portfolio manager to SGIL, as to the investment objectives and policies applicable to the Serendib Growth Investment Ltd.
This Statement has been developed from an evaluation of many key factors which impact the investor’s specific situation and investment objectives. This Statement is not a contract. It is intended to be a summary of an investment philosophy that provides guidance for the Investors of SGIL and the portfolio manager, KICL.
The main investment objective of Serendib Growth Investment Ltd (SGIL) is to seek long term capital appreciation through investing in companies listed in Colombo Stock Exchange (CSE) representing growth sectors of the Sri Lankan economy.
The Investor recognizes that the objectives of the portfolio cannot be achieved without incurring a certain amount of principal volatility because the portfolio of assets will invest exclusively in growth shares listed in the CSE.
Following risk mitigation factors will be followed by the portfolio managers to ensure long term stable growth of the portfolio of SGIL assets.
At any given time, SGIL assets will have following maximum investment exposure limits and investment controls:
KICL, the portfolio manager to the portfolio of SGIL assets, will apply sound investment management techniques and methods, which centers on the fine balance between long term capital growth and growing it responsibly.
No guarantees are given about future performance and this statement shall not be construed as offering such guarantee.
The main objectives of SGIL equity selection criteria are to:
Kenanga Investment Corporation Ltd, the portfolio managers to the company, will conduct through macro economic research to identify economic sectors with medium to long term growth potential.
Once these sectors are identified, KICL will conduct in-detail due diligence to select companies that are exposed to these sectors with excellent business models and sound management.
Finally individual stock lists representing each growth sector will be developed for the investment management purpose of SGIL portfolio of assets.