Sri Lanka’s unit trust industry recorded a divergent performance during the first seven months of 2026, with income and money-market funds generally delivering positive returns while equity-oriented and balanced funds faced pressure amid weaker market performance.
According to the Performance Summary of Unit Trusts as of July 2026, covering the period from 1 January to 31 July 2026, the CSE All Share Index declined 6.61%, while the S&P Sri Lanka 20 fell 3.53%. The benchmark weakness contrasts with the positive returns recorded by many fixed-income and money-market funds during the same period.
Income funds remain relatively resilient
Open-ended income funds were among the more resilient segments. CAL Income Fund recorded a 6.35% year-to-date return, followed by CAL High Yield Fund at 6.14%, CAL Fixed Income Opportunities Fund at 5.90%, CAL Investment Grade Fund at 5.60%, and Asia Securities Income Fund at 5.55%.
The First Capital Fixed Income Fund posted a 5.57% YTD return, while NDB Wealth Income Fund delivered 5.07%. NDB Wealth Income Plus Fund, however, recorded a more modest 2.22% return during the period.
Equity funds face a more challenging environment
The contrast was particularly visible among equity funds. CAL Quant Equity Fund declined 7.70% during the first seven months, while NDB Wealth Growth Fund fell 7.20%. Astrue Alpha Fund declined 4.15% and CT Smith Growth Equity Fund fell 2.15%.
Several funds nevertheless remained in positive territory. JB Vantage Value Equity Fund gained 1.04%, Ceybank Century Growth increased 1.49%, and Senfin Growth Fund rose 2.21%. Senfin Select Factor Fund recorded a 4.48% gain.
Ceylon IPO Fund leads reported YTD returns
One of the strongest performances in the report came from the Ceylon IPO Fund, which recorded a 9.74% YTD returnthrough July. The fund also attracted reported net inflows of approximately Rs.541 million, with inflows of Rs.554.8 million against outflows of Rs.13.8 million.
Among balanced funds, CT Smith Equity Fund posted a 4.03% YTD return, while NDB Wealth Growth & Income Fund gained 2.89%. Other balanced funds, including CAL Balanced Fund and Ceybank Unit Trust, recorded negative YTD returns.
Money-market funds continue to provide positive returns
Money-market funds generally maintained positive performance. Asia Securities Money Market Fund returned 5.02%, Senfin Money Market Fund 5.07%, Ceylon Money Market Fund 5.22%, and Softlogic Money Market Fund 5.55%.
The largest money-market funds also continued to command substantial assets. NDB Wealth Money Fund reported NAV of approximately Rs.58.54 billion, while NDB Wealth Money Plus Fund had approximately Rs.19.31 billion. First Capital Money Market Fund stood at approximately Rs.30.12 billion.
NAMAL’s fund performance was mixed
As of July 2026, National Asset Management Limited (NAMAL) fund performance was mixed. The NAMAL Income Fund delivered a modest 1.65% YTD return, well below the income-fund peers and its previous-year return of 10.01%. Meanwhile, the NAMAL Growth Fund performed better, recording a 3.15% YTD return, although this was significantly below its strong 50.11% return in 2025. The NAMAL High Yield Fund generated a more competitive 4.91% YTD return, broadly in line with other money-market funds. Overall, NAMAL’s equity and high-yield funds showed reasonable resilience, but the income fund remained relatively weak during the first seven months of 2026
Industry assets exceed Rs.576 billion
The report’s aggregate figures show NAV of approximately Rs.576.75 billion across the funds covered. The reported total number of unit holders was approximately 162,957, while aggregate inflows were reported at around Rs.97.41 billion and outflows at approximately Rs.104.00 billion for the period.
The largest individual fund by NAV in the report was CAL Fixed Income Opportunities Fund, with NAV of approximately Rs.84.18 billion and 16,300 unit holders. It also recorded net reported inflows of approximately Rs.7.18 billion during the first seven months.
Five-year performance remains strong for several funds
Despite the weaker 2026 equity-market performance, several funds have generated strong longer-term returns. CT Smith Equity Fund recorded a five-year CAGR of 30.14%, while JB Vantage Value Equity Fund recorded 27.28% and First Capital Equity Fund 26.34%. CAL Quant Equity Fund recorded a five-year CAGR of 24.77%.
The figures highlight the increasingly important role of diversification across income, money-market, gilt, equity and balanced funds as investors navigate differing market conditions.
Source: Unit Trust Association of Sri Lanka (UTASL), Performance Summary of Unit Trusts as of July 2026. The report covers YTD performance from 1 January to 31 July 2026 and historical performance for 2021–2025 where available.
