Directive on Categorization of Collective Investment Schemes (Unit Trusts)

ffiffi*t \ tl\r- ( t:,"'#,fi115:i-3,:Xfil,xfl -/ rl- ;L -a I € gom OC[Q@od ao D6@cs gto:Ood aoD (Edrriroou rllomurdreoi op6ru uflofgpom qgood6(9 Olst October 2025 Ref: SEC/SUP I 2025 I LO I 367 TO: ALL MANAGING COMPANIES AND TRUSTEES OF COLLECTIVE INVESTMENT SCHEMES (crs) DIRECTIVE ISSUED UNDER SECTIONS 16(c) AND 16(d) OF THE SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA ACT, NO. 19 OF 2021 (SEC ACT) CATEGORTZATTON OF COLLECTIVE INVESTMENT SCHEMES (UNIT TRUSTS) The Securities and Exchange Commission of Sri Lanka (SEC) at its 522nd Meeting held on 16th September 2025 resolved to direct the Managing Companies and Trustees of Collective Investment Schemes to adopt the following categorization of Collective Investment Schemes (Unit Trusts). Accordingly, the SEC hereby directs the Managing Companies and Trustees of CIS to implement the following categorization of Collective Investment Schemes in terms of Sections 16(c) and 16(d) of the SEC Act No. 19 of 2027 stipulated below: Fund Category/Type Investment Objective Investment Strategy GROWTH To achieve capital appreciation in the medium to long term time horizon, The fund shall invest a minimum of B0o/o of its Net Asset Value (NAV) in equity and the balance in fixed income securities. Strategic asset allocationl to Equity, minimum of B0o/o of the NAV. Tactical asset allocation2 to Equity, minimirm of 600/o of the NAV (permitted for a period of 06 Months). Fund Category/Type Investment Objective Investment Strategy BALANCED To achieve both capital appreciation and periodic returns in the medium to long term time horizon. The fund shall invest to maintain a balanced portfolio between equities and fixed income investments in the ratio of 60:40. Strategic Asset Allocation to Equity, minimum of 600/o of the NAV. Tactical asset allocation to Equity, minimum of 40o/o of the NAV (permitted for a period of 06 Months). Fund Category/Type Investment Objective Investment Strategy INCOME To provide investors with a regular and steady income. The fund shall invest a minimum of 70o/o of the NAV in fixed income securities such as government securities, bonds, corporate debentures, money market instruments and cash and cash equivalents. 28 6ED 29 06@. 0.00060 @Oo o@jo coge 0Abd0)o6 00Od 0adQ6, 06A0 01. Cd€DOet I GorooGud | ,g+lr|zlqsgql Telephone ) 28 DEUrb 29 ggrb Dtrq, dp&g G6trqr6 LoE 0ft666 oDuri. fld6o6fi e5li6rb GEtr(UOq 01. Level 28 & 29, East Tower World Trade Centre Echelon Square, Colombo 01, Sri Lanka ordd Gpnoopeoi: Fax IOSCO ) *r0,, ,o.r,on 0OA qAEG 1 m.sec.gov.lk hte.nationatorganiation @omuLi I www. cmet.sec.gov.lk ofsecuitie5commi5sions Website J m.cmic.sec.qov.lk

5 t fr |::;ls;ir, :rritilrr . Continuation Sheet This Directive shall be effective from 01$ October 2025 and all Managing Companies and Trustees of Collective Investment Schemes are required to be in full compliance with this Directive by 02M April 2026. This Directive shall be called Directive on Categorization of Collective Investment Schemes. 1 Strategic asset allocation is an asset mix which maintains a long-term perspective. 2 Tactical asset allocation is a strategy that allows shot term deviations due to changes in short term capital market investment opportunities. ') Fund Category/Type Investment Objective Investment Strategy MONEY MARKET To provide investors with regular short-term returns and liquidity by investing in a portfolio of diversified short-term debt securities and money market instruments. The fund may invest a minimum of 90o/o of the NAV in money market instruments permissible as stated under Appendix 5 of the CIS Code. Fund CategorylType Investment Objective Investment Strategy GILT To invest in government securities and repurchase agreements in government securities. The fund shall invest a minimum of B0% of the NAV in government securities, treasury bills, treasury bonds and repurchase agreements on government securities. Fund Category/Type Investment Objective Investment Strategy INDEX To achieve medium to long term capital appreciation by seeking to replicate the performance of the selected Index. The fund shall invest a minimum of 90o/o of the NAV in securities of a particular index. Fund Category/Type Investment Objective Investment Strategy SECTOR SPECIFIC SCHEMES To provide capital appreciation and to reap the performance of a particular industry during a particular period of an economic cycle. The fund shall invest a minimum of 90o/o of the NAV in the specific sector/industry of the economy. Tushara Jayaratne