FAQ

Answers to some of our investors
most commonly asked questions

How does JB Vantage work?

It’s easy to sign up with us: complete the documents for an account with us, review information about the funds offered, and then decide how much you want to commit. An account with us is free. See How It Works

Why should I invest in a unit trust?

We encourage you to read our Unit Trust 101 section for a more comprehensive overview.

Why invest through JB Vantage?

If you invest directly with private bankers, you are required to meet their minimums. Generally speaking, private banking require investors to commit a minimum of Rs. 10 or 20 million making it extremely difficult for most investors to access them. It is also necessary to pay high fees to enter these levels of service.

JB Vantage is a centralized, fully automated platform that provides access to private banking levels of investments and quality standards in a cost-effective and streamlined manner. Through targeted sourcing and technology, we are able to offer investments at low minimums. Our current minimums are as low as Rs. 1 million per fund.

Why not just stick to well known and familiar investment strategies, such as fixed deposit investing?

While fixed deposits strategies may be suitable for some investors, they do not on their own provide the level of diversification and flexibility that unit trusts do. Fixed deposits are a very limited example of fixed income category investments, which include valuable retail examples such as debentures. While most investors are very comfortable investing in fixed deposits, investors need to have a more diversified portfolio in order to invest successfully. Fixed deposits may prove a suitable investment vehicle at time of high interest rates, due to their predictability, but a diversified portfolio will contain assets that perform well in every stage of the interest rate cycle.

Who can invest with JB Vantage?

In order to invest with us, you must invest a minimum Rs. 1 million per fund. Other than that, there are no restrictions.

I am a non-Sri Lankan investor, can I sign up for an account with JB Vantage?

Yes. If you are a non-Sri Lankan, or a non resident, you can still become part of the JB Vantage community. However, certain investor information may be requested of you for Central Bank or Securities and Exchange Commission tracking.

Do members of the JB Vantage team invest alongside investors into funds?

Yes. Members of the JB Vantage team as well as the broader JB Group will generally invest in the funds offered by us.

How do I redeem my investment?

You can choose to redeem your investment by sending us a signed redemption form. We will lock in your redemption price (buying price). Bear in mind to check whether your fund has a lock up period and early redemption fees may apply.

How do cash transfers work? Does JB Vantage take custody of my cash?

All cash transfers are done via cheque, SLIPS, RTGS or international wire transfer directly from your bank account. JB Vantage does not take custody of cash at any point – money is transferred directly from your account to our unit trusts’ bank accounts in the name of each Trust at Deutsche Bank AG, Colombo Branch.

What about tax documentation?

There is no tax reporting document required for most individual and corporate investors therefore none is issued.

What are the tax implications of investing in a Unit Trust?

We encourage you to speak to your tax advisor before investing, as each investor’s situation is different. Generally speaking for Sri Lankan clients, unit trusts are taxed at a preferential maximum tax rate of 10% on taxable income, which means that all gains accruing from them are tax free in the hands of the investor, both individual and corporate. In essence, this means that there is generally 10% tax at the fund level on interest bearing instruments and therefore each investor is not responsible for any taxes. However, exceptions may arise in the case of banks and foreign taxpayers.

How quickly is my money available if I decide to sell?

The JB Vantage Money Market Fund and Short Term Guilt Fund unit trusts provide you with easy access to your money. Normally, your money should reach your account within three working days after you have placed a valid redemption order. For the other JB Vantage Unit Trusts it is normally within 7 business days. You can sell all or part of your investment at any time. However, we recommend that investments in any fund except the money market fund should be viewed as medium to longer term (3 – 5 years), as the nature of the main investment assets within the funds follows a longer-term market cycle.

How can I monitor the returns of the investment in JB Vantage Unit Trust?

The JB Vantage Unit Trust prices are published in the national newspapers and also on the JB Vantage website. The market value of your investment depends on the current price of the unit at a particular period of time. The number of units you have needs to be multiplied with the current manager’s buying price which then gives you the market value of your investment.

For example, you might have purchased 80049.19 units at a price of Rs. 12.4853. If the price appreciates after 6 week to Rs. 12.6893, this means that the market value of your investment has increased from Rs. 1,000,000 to Rs. 1,016,330.03.