NDB WEALTH MONEY FUND

Financial Statements for the period Ended

30th June 2023
Fund Review 1st Half 2023 - NDB Wealth Money Fund
In the first half of 2023, Sri Lanka experienced a significant decrease in interest rates. The Central Bank of Sri Lanka
(CBSL) and the Monetary Board raised policy rates by 100 basis points in March 2023 to meet the requirements for
securing the IMF Extended Fund Facility (EFF) arrangement. Subsequently however, CBSL implemented aggressive
rate cuts from June 2023, reducing policy rates by 250 basis points to stimulate the economy following a historic
contraction in 2022. As a result, the Standing Lending Facility Rate (SLF) stood at 14.00% and the Standing Deposit
Facility Rate (SDF) at 13.00% by the end of the first half of 2023. In this backdrop, interest rates across the yield curve
dropped, with the benchmark 364-day Treasury bill rate falling from 29.16% in end December 2022 to 16.99% by the
end of June 2023 (Source: Central Bank of Sri Lanka).

In the 2H2023, a continued decline in inflation is anticipated, primarily attributed to the appreciation of the Sri Lankan
Rupee and the easing of global commodity prices as well as the base effect. These factors are expected to provide
room for a more relaxed monetary policy stance, aimed at stimulating economic activity during this period.

35% Interest Rate Movement Yield Curve

33%
30%
28%
25%
20% 23%
15% 18%
10% 13%
5% 8%
0% 3%
Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23
3 6 12 24 36 48 60
91-Day 182-Day 364-Day Jun-22 Jun-23
Source: Central Bank of Sri Lanka

On the fiscal front, overall budget deficit for 2023 is expected to hover in the range of approximately LKR 2.40 Tn (vs.
2.46 Tn in 2022), amidst better revenue collection and curtailment of capital expenditures. Thus, going forward
significant fiscal consolidation measures and structural reforms will have to be introduced as part of an IMF program
in order to achieve debt sustainability and overall macro-economic stability.

During the period under review the NDB Wealth Money Fund yielded the following returns commensurate with the
risk parameters and the objective of the Fund:
NDB Wealth Money Fund *Average Weighted Deposit Rate (AWDR)*6-month avg.
Performance - 1st Half 2023 13.15% (after fees) N/A
Annualized Performance - 1st Half 2023 26.29% (after fees) 14.98%
*Source: Central Bank of Sri Lanka

With inflation under control, Central Bank is expected to be able to implement further monetary easing to foster
economic recovery and further decreases in interest rates may be foreseen during the second half of the year.
 NDB WEALTH MONEY FUND
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023

30-Jun-23 30-Jun-22
Note LKR LKR

Interest income 1 8,241,298,725 1,238,507,597

Realised Gain/(Loss) on Sale of financial assets 19,573,030 868,500

Expenses 2 (226,557,300) (88,011,416)

Profit before tax 8,034,314,455 1,151,364,681

Income tax expense 3 - -

Profit for the year 8,034,314,456 1,151,364,681

Other comprehensive income - -

Total comprehensive income for the year 8,034,314,456 1,151,364,681

Increase in net assets attributable to unitholders 8,034,314,456 1,151,364,681

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 NDB WEALTH MONEY FUND
STATEMENT OF CHANGES IN UNITHOLDERS' FUND
FOR THE YEAR ENDED 30 JUNE 2023

Unit capital Retained earnings Total

LKR LKR LKR

Balance as at 1 January 2022 10,869,132,706 12,707,174,146 23,576,306,851

Net decrease due to creation and redemption of units 7,738,868,875 11,093,816,255 18,832,685,130

Increase in net assets attributable to unitholders - 5,131,997,587 5,131,997,587

Other comprehensive income - - -

Total comprehensive income for the year - 5,131,997,587 5,131,997,587

Balance as at 31 December 2022 18,608,001,581 28,932,987,989 47,540,989,569

Net decrease due to creation and redemption of units 9,676,471,480 16,511,205,596 26,187,677,076

Increase in net assets attributable to unitholders - 8,034,314,456 8,034,314,456

Other comprehensive income - - -

Total comprehensive income for the year - 8,034,314,456 8,034,314,456

Balance as at 30 June 2023 28,284,473,060 53,478,508,040 81,762,981,100

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 NDB WEALTH MONEY FUND
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023

30-Jun-23 30-Jun-22
LKR LKR

Cash flows from operating activities

Interest received 4,298,266,367 1,154,418,625

Tax paid - -
Management fees paid (166,557,642) (76,250,570)
Other expenses paid (39,518,800) (17,388,064)
Net movement in fixed deposits - 12,936,254,051
Net disposal of/ (investment in) TBills (27,189,574,302) 1,007,604,425
Net realised gain on security sales 19,573,030 868,500
Net cash generated from operating activities (23,077,811,346) 15,005,506,966

Cash flows from financing activities

Proceeds on creation of units 138,990,365,062 48,545,633,442
Payments on redemption of units (112,802,687,986) (63,017,330,522)
Net cash generated from /(used in) financing activities 26,187,677,076 (14,471,697,080)

Net increase / (decrease) in cash and cash equivalents 3,109,865,729 533,809,888

Cash and cash equivalents at the beginning of the year 3,371,416,959 2,898,707,350
Cash and cash equivalents at the end of the year 6,481,282,689 3,432,517,238

Cash and cash equivalents at the end of the year comprises of:
Cash at bank 25,001 25,000
Financial instruments - maturity within 3 months 6,481,257,688 3,432,492,238
6,481,282,689 3,432,517,238

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 NDB WEALTH MONEY FUND
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

30-Jun-23 30-Jun-22
LKR LKR

1. Interest income
Treasury bills under repurchase agreements (long term) 666,416,955 161,925,391
Treasury bills under repurchase agreements (short term) 76,219,747 32,479,544
Fixed deposits - 555,859,107
Interest on money market saving accounts 256,154,786 132,683,747
Interest Income from GOSL Tbills 7,242,507,237 355,559,808
8,241,298,725 1,238,507,597

2. Expenses
Management fee 183,246,054 71,692,578
Trustee fee 42,146,592 15,804,272
Custodian fee 70,188 64,662
Auditors Remuneration 57,500 55,000
Tax consultancy fee 12,000 12,000
Bank charges 1,024,967 382,903
226,557,300 88,011,416

3. Income tax
Tax expense for the year - -
- -

The fund has calculated the income tax liability up to 31 March 2018 in accordance with the previous Inland
Revenue Act No. 10 of 2006 and following the enactment of the new Inland Revenue Act No. 24 of 2017
effective from 1 April 2018, the fund is deemed as conducting an eligible investment business and is treated
as a tax pass through vehicle.

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 NDB WEALTH MONEY FUND
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

30-Jun-23 As a % of net 31-Dec-22 As a % of net

LKR assets value LKR assets value

4. Financial assets measured at amortised cost

Treasury bills under repurchase 5,545,767,309 6.78% 1,024,657,534 2.16%

agreements (short term) (Note 4.1)
Investment in money market saving
accounts (Note 4.2) 1,035,620,304 1.27% 2,428,507,336 5.11%

Investment in GOSL Tbills (Note 4.3) 74,130,299,033 90.66% 44,116,049,385 92.80%

80,711,686,645 99% 47,569,214,255 100%

4.1 Treasury bills under repurchase agreements (short term)

Company 30-Jun-23 As a % of net 31-Dec-22 As a % of net

LKR assets value LKR asset value

Capital Allaince Ltd 3,792,890,596 4.64% 1,024,657,534 2.16%

First Capital Treasuries 1,752,876,712 2.14% - 0.00%
5,545,767,309 6.78% 1,024,657,534 2.16%

4.2 Investment in money market saving accounts

Company 30-Jun-23 As a % of net 31-Dec-22 As a % of net

LKR asset value LKR asset value

Hatton National Bank 658,807,514 0.81% 323,713,375 0.68%

Cargills Bank Limited 163,691,805 0.20% 1,097,019,641 2.31%
MCB Bank Limited 213,108,037 0.26% 1,006,699,230 2.12%
DFCC Bank 12,947 0.00% 1,075,089 0.00%
1,035,620,304 1.27% 2,428,507,335 0.68%

4.3 Investment in GOSL Tbills

Company 30-Jun-23 As a % of net 31-Dec-22 As a % of net

LKR asset value LKR asset value

Wealthtrust Securities 21,960,092,756 26.86% 12,672,989,753 26.66%

Acuity Securities Ltd 7,939,883,891 9.71% - 0.00%
First Capital Treasuries 19,344,272,874 23.66% 12,947,431,640 27.23%
Capital Allaince Ltd 24,886,049,512 30.44% 14,482,770,967 30.46%
SAFE Holdings (Pvt) Ltd. - 0.00% 4,012,857,025 0.00%
74,130,299,033 90.66% 44,116,049,385 84.35%

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 NDB WEALTH MONEY FUND
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

30-Jun-23 31-Dec-22
LKR LKR

5. Tax recoverable
Balance as at 01 January - -
Notional tax credit recoverable 6,749,116 6,749,116
6,749,116 6,749,116
Less
Impairment allowance for Notional Tax (6,749,116) (6,749,116)
Balance as at 30 June - -

As of 31 December 2019, the net income tax recoverable comprises of WHT amounting to Rs.6,479,116. The Fund
Manager intends to claim the WHT recoverable by means of a refund.

However, subsequent to the enactment to the new Inland Revenue Act No. 24 of 2017, effective 01 April 2018, an
Eligible Unit Trust would not be liable for income tax on any income which is a pass through to its unitholders.
Therefore, the fund manager is unable to assess with a reasonable certainty that there will be future income tax liability
to offset this income tax receivable balance.

6. Accrued expenses
Management fee 39,520,659 22,832,247
Trustee fee 9,089,752 5,251,417
Audit fee 52,500 110,000
Custodian fee 11,633 12,021
Tax consultancy fee 56,000 44,000
48,730,544 28,249,685

7. Net assets attributable to unitholders

The movement in the number of units and net assets attributable to unitholders during the year is as follows:

30-Jun-23 31-Dec-22 30-Jun-23 31-Dec-22

Units Units LKR LKR

Opening capital balance 1,860,800,165 1,086,913,280 47,540,989,570 23,576,306,852

Units issued during the period 5,093,136,775 6,300,239,509 138,990,365,062 147,062,991,133
Units redeemed during the period (4,125,489,674) (5,526,352,623) (112,802,687,986) (128,230,306,003)
Increase in net assets attributable - - 8,034,314,456 5,131,997,587
to unit holders
Closing balance 2,828,447,267 1,860,800,165 81,762,981,100 47,540,989,570

The creation price was at LKR 28.9073 per unit (2022 - LKR. 22.7208) and the redemption price was at LKR 28.9073
per unit (2022 - LKR. 22.7208) as at 30 June 2023.

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 NDB WEALTH MONEY FUND
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

8. Events after the reporting date

There have been no material events occurring after the reporting date that require adjustments to or disclosures in the financial statement.

9. Capital commitments
There were no capital commitments at the end of the reporting date.

10. Related party transactions

The following have been identified as related parties to NDB Wealth Money Fund in accordance with LKAS 24 for the reason stated below.

The fund management company, NDB Wealth Management Ltd is a subsidiary of NDB Capital Holdings PLC. The company's ultimate parent entity and
controlling party is National Development Bank PLC, which is incorporated and domiciled in Sri Lanka.

Mr. D.S.P. Wickramanayake, Mr. Bernard Sinniah, Mr. Sanjaya Perera, Mr Senaka Kakiriwaragodage and Mr. Dimantha Seneviratne are directors of the
NDB Wealth Management Ltd.

Details of fund management fees and trustee fees paid/ payable to related parties are as follows:

Name of the related party Nature of interest Particulars of financial Transaction Outstanding
dealings value value
LKR LKR

NDB Wealth Management Limited Fund Management Company Management fee 183,246,054 39,520,659

Hatton National Bank (HNB) Trustee Trustee fees 42,146,592 9,089,752

Custodian fee 70,188 11,633

The fund maintains a current account with the Trustee, Hatton National Bank through which all settlements of transactions of the Fund were made.

30-Jun-23 31-Dec-22
LKR LKR

Bank balance of Hatton National Bank 25,000 25,000

Fixed Deposits- National Development Bank - 1,504,068,493
Money Market Saving Account at Hatton National Bank 658,807,514 200,679,376
658,832,514 1,704,772,869

11. Net Assets Value Reconciliation

NAV as per Value as at 30-06-2023 81,762,766,143

Add: Adjustments to the Financial Statements

Management Fee,Trustee Fee & Custodian Fee 104
Auidt Fee - Over provision adjustment 131,015
Tax Consultant Fee - Over provision adjustment 83,839

NAV as per Financial Statements 81,762,981,100

(Net Assets attributable to Unit holders)