Lanka Rating Agency
Press Release


Imran Iqbal
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Applicable Criteria

  • Methodology | Stability Rating | Jul-23

Related Research

  • Sector Study | Mutual Funds | Stability | Nov-23

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LRA Assigns Initial Stability Rating to Softlogic Money Market Fund.

Rating Type Stability Rating
Action Initial
Long Term A(f)
Outlook Stable
Rating Watch -

Softlogic Money Market Fund ("The Fund") is characterized by a low-risk profile. The Fund aims to provide liquidity to investors while enhancing returns by investing in a diversified portfolio of short-term debt securities with maturities of less than 365 days. The fund allocates, as of December 2023, 47% of its assets to government T-bills, 20% to commercial paper investments, 19% to unit trusts, and 14% to repurchase agreements, with the majority of its investments rated A and above, though some portion of commercial paper investments remains unrated. The fund also holds some minimal A-rated bank deposits, representing less than 1% of its total gross assets. Notably, 61% of the fund's gross assets are in government securities. The weighted average maturity (WAM) as of December 2023 was 48 days, with a recorded return of 5% in Quarter 4 of CY23, in line with peer averages. However, with decreasing interest rates and a WAM of 48 days, future returns are expected to decrease. The fund's top 10 investor concentration stands at 42%, indicating concentration at the investor level. The Fund adheres to its approved investment policy and market expectations and is expected to continue the same, going forward. Any significant changes in the asset allocation, duration, maturity profile, or returns compared to the peers will have an impact on the fund's rating.

About the Entity
Softlogic Asset Management Pvt Ltd. is duly licensed by the Securities and Exchange Commission of Sri Lanka Act, No. 36 of 1987, granting it the authority to operate as a unit trust management company. Established in 2010, Softlogic Asset Management Pvt Ltd. operates as a wholly owned subsidiary of Softlogic Capital PLC, a publicly listed entity with a market capitalization of LKR~5,765mln as of February 24th, 2024. Within its ownership structure, Softlogic Capital PLC has the backing of Softlogic Holding PLC, owning a significant 77% stake, while the remaining 23% is represented by individual shareholders with single investments exceedingly less than 1%. Softlogic Asset Management Pvt. Ltd. operates two unit trusts and offers private wealth management services, with funds under management of approximately LKR 34 billion as of December 2023. The Board of Directors comprises five qualified individuals with industry experience. Softlogic Asset Softlogic Asset Management Pvt. Ltd. is led by Ms. Niloo Jayatilake, who serves as the CEO/Director of Softlogic Asset Management Pvt. Ltd. and has over three decades of expertise in investments and portfolio management. Prior to joining Softlogic Holdings, she held the position of Head of Portfolio Management/Director of Guardian Fund Management Ltd. for a period of 10 years. She is a Fellow Member of the Chartered Institute of Management Accountants, UK, and an Associate Member of the Institute of Chartered Secretaries and Administrators, UK.
Mr. Uvin Athukorale is the fund manager at Softlogic Asset Management Pvt. Ltd. With over seven years of experience in financial markets, Mr. Athukorale's journey encompasses roles in group strategy and corporate management prior to his tenure at Softlogic Asset Management Pvt. Ltd. He is CIMA partly qualified with a bachelor's degree in BSc Mathematics and Economics.

About the Instrument

The primary function of LRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. LRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. LRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.