Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post

Latest topics

» ලංකාවට වැස්ස කෘතිම වැස්ස..is it required for Sri Lanka?
by Uaecoindubai Today at 12:03 pm

» What Sri Lanka can do to improve the credibility of Rupee
by Sstar Today at 11:30 am

» UBC - What is going on
by Soilconomy Today at 6:47 am

» UBC TO HIT 24 ??
by Soilconomy Today at 6:47 am

» UBC - Stake up by big invester
by Soilconomy Today at 6:46 am

» Sad situation of expressway !!!!
by Yahapalanaya Today at 4:12 am

» GOLDEN ERA
by soileconomy Yesterday at 9:14 pm

» Daily Stock Market Update
by Insights Equity Yesterday at 7:20 pm

» INSURANCE companies finally falling!
by nosf766 Yesterday at 2:00 pm

» Cinnamon Grand now Topless without Rohan Karr
by ChooBoy Yesterday at 1:47 pm

» MARKET CRASH - GUARANTEED
by Maharaja Yesterday at 1:47 pm

» Dusit Thani Sri Lanka project halted?
by ChooBoy Yesterday at 11:44 am

» Profitable Forex Copy (over 100% profit monthly)
by princess111 Yesterday at 6:02 am

» SEC Chief welcomes PM’s remark on EPF’s return to stock market
by kalu351 Yesterday at 2:16 am

» පැලවත්ත කිරි සමාගම කොටස් වෙළද පොළට,DRINK pelawaththa milk & help sri lanka
by Miss-Sangeetha Thu Mar 21, 2019 5:39 pm

» CSE is promoting Life Insurance companies whilst Stock Market is crashing.
by ChooBoy Thu Mar 21, 2019 12:35 pm

» Singapore rejects Sri Lankan leader’s allegation on trading scam suspect
by Yahapalanaya Thu Mar 21, 2019 8:18 am

» BALA.N potential
by Yahapalanaya Thu Mar 21, 2019 6:39 am

» Sri lanka tourism income reached 4.4 billion USD 2019
by Yahapalanaya Wed Mar 20, 2019 10:03 pm

» presidential election very soon ?
by Yahapalanaya Wed Mar 20, 2019 10:01 pm

» AEL.N0000 is the Next AAIC.N0000 -
by Trader321 Wed Mar 20, 2019 12:37 pm

» World Bank approves USD70Mn to Sri Lanka
by Sstar Wed Mar 20, 2019 11:13 am

» Sri Lanka shares end little changed; rupee rises
by Miss-Sangeetha Tue Mar 19, 2019 6:30 pm

» Diversification of Sri Lankan economy, must to garner more economic benefits
by ChooBoy Tue Mar 19, 2019 2:04 pm

» ALHP Right issue......!!!!1
by Miss-Sangeetha Tue Mar 19, 2019 11:47 am

» UBC.N0000- Donnt miss this
by Trader321 Tue Mar 19, 2019 10:13 am

» BFN - DEAL OVER - TO BE DE LISTED SOON AFTER THE PRIVATE PLACEMENT ඩීල් එක ඉවරයි @ 19-59 - කොටස් වෙළදපලෙනුත් ඉවත් කරගන්නා බවට ආරන්චි
by sanjulanka Mon Mar 18, 2019 7:03 am

» While waiting for the market to rebound, look for bargains if you can afford the risk. Try to be active at the right time to gain something
by Asoka Samarakone Sun Mar 17, 2019 3:18 pm

» ඉතා ඉක්මනින් සේවක අර්තසාදක අරමුදල නැවත කොටස් වෙළදපල ට
by mahasona2 Sun Mar 17, 2019 3:43 am

» Central Bank targeting early return of EPF to stock market
by mahasona2 Sun Mar 17, 2019 3:24 am

» Lofc delisting??
by Bdcdman Sat Mar 16, 2019 11:16 pm

» Weekly Stock Market Roundup
by Insights Equity Sat Mar 16, 2019 5:37 am

» Today is UBC.N0000 day.
by Trader321 Fri Mar 15, 2019 11:32 am

» HVA WILL THEY RECTIFY THE REGULATORS QUARIES BEFORE DEAD LINE?
by Bdcdman Fri Mar 15, 2019 11:11 am

» ALHP WILL MOVE UP from next MONDAY
by Miss-Sangeetha Fri Mar 15, 2019 10:52 am

» ALHP WILL MOVE UP SOON
by mahasona2 Thu Mar 14, 2019 11:05 pm

» CASH RICH REXP
by Yahapalanaya Thu Mar 14, 2019 6:09 pm

» ලාංකීය හෙදියකට ලක්ශ 9 ක් ගෙවන ඇමෙරිකාව
by Uaecoindubai Thu Mar 14, 2019 3:48 pm

» EAST INTERESTING DAYS AHEAD 25+
by karuna2 Thu Mar 14, 2019 11:43 am

» රජයේ පඩි දෙගුණයක් වුන හැටි
by Uaecoindubai Thu Mar 14, 2019 9:31 am

» UBC.N0000 Vs AEL.N0000 - What will be the best
by Trader321 Thu Mar 14, 2019 9:15 am

» EFP TO start again invest in Stocks
by mahasona2 Thu Mar 14, 2019 1:10 am

» Second reading of budget passed by 119 Votes - Shows this Government is Confident
by Maharaja Wed Mar 13, 2019 11:27 pm

» Fall of stocks - Big Players are behindThis is the time to buy and collect stocks
by mahasona2 Wed Mar 13, 2019 9:49 pm

» Government salary hike almost double..
by Uaecoindubai Wed Mar 13, 2019 9:32 pm

» COLOMBO STOCKS 5 1/2 LOW
by soileconomy Wed Mar 13, 2019 7:19 pm

» UBC.N0000 ? Expert ideas please ?
by Trader321 Wed Mar 13, 2019 2:31 pm

» UBC.N000- keep eye, something is happening
by Trader321 Wed Mar 13, 2019 2:22 pm

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Top global fund manager upbeat on Sri Lanka’s future prospects

Top global fund manager upbeat on Sri Lanka’s future prospects

Go down  Message [Page 1 of 1]

Beta1

Beta1
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Oliver Bell, T. Rowe Price Vice President and Lead Portfolio Manager, Africa, Middle East and Frontier Markets – Pic by Lasantha Kumara
 
By Nisthar Cassim

T. Rowe Price, a global investment management organisation with $861.6 b in assets under management, is upbeat on Sri Lanka’s future prospects and it is walking the talk by doubling exposure in listed equities with appetite for more.

The investments in Sri Lanka are via its T. Rowe Price Frontier Markets Fund and Asian Equity Fund, and its Vice President Oliver Bell who was in Colombo last week said the Fund’s optimism was reflected by the fact that it was overweight on Sri Lanka.

The Frontier Markets Fund started investing in Sri Lanka about two years ago following the election of new Government. However, the increase in the Frontier Markets Fund’s exposure from 5% to 10% had been during the past six months and Bell hinted it would grow further. 

Overall via the two funds, T. Rowe Price has invested $ 80 million in listed equities. Rowe Price also owns approximately $ 350 million of Sri Lankan related debt in the Group’s emerging fixed income funds.

The T. Rowe Price Frontier Markets Fund seeks to identify long-term market leaders in countries on the cusp of rapid development. Currently the fund invests in 24 developing countries globally with $ 360 million assets under management as at 13 July. The Group has dedicated Emerging Markets equity assets of $ 21.7 billion as at end March.

The fresh optimism on Sri Lanka is spurred by what Bell described as emerging signs of better policy coordination and implementation, especially after the mini-Cabinet reshuffle. 

“What is happening now is ideally what should have happened two years ago,” noted Bell, who is also Rowe Price Group’s Lead Portfolio Manager and Chairman of the Investment Advisory Committee for the T. Rowe Price Middle East and Africa Equity Strategy and also the Frontier Markets Equity Strategy.

“When we originally came, just like the nation, we had a lot of hopes and expectations. The first Budget being populist was understandable with expectations of a follow-up business-friendly Budget. However Sri Lanka has had several challenges during the past two years and more recently drought followed by floods have posed additional difficulties,” he said.

“Nevertheless it appears the Government is committed to improve the economy’s prospects, which in turn will help corporate earnings. From that perspective we are bullish,” emphasised Bell, whose Frontier Markets Fund takes a 10-year long-term view. 

“We expect positive changes in the upcoming Budget and greater clarity. We also look forward to greater coordination in policy and implementation,” said Bell, adding his latest visit showed signs for more optimism. 

“With natural disasters likely to dent growth in 2016, next year looks more promising,” he said, adding that the IMF program was positive for Sri Lanka and comforting for investors.  

Along with CT CLSA Securities, Bell met Deputy Economic Affairs Minister Dr. Harsha de Silva and Central Bank Governor Dr. Indrajit Coomaraswamy, apart from a host of companies in which the Fund has invested as well as some of the prospective companies.

According to Bell, Frontier Markets Fund has exposure to listed equities in 24 countries and finds Sri Lanka the most positive as valuations are very cheap with a host of well-managed companies whose stocks are attractive with good growth potential. 

“The banking sector is relatively cheap and there are several other sector stocks which are reasonably priced,” revealed Bell, who finds construction, telecom and consumer goods among promising sectors.

“For us Sri Lanka has been the ‘longest overweight,’” said Bell, who notes many investors haven’t realised the full potential of Sri Lanka whilst the country on its part is yet to maximise from the post-war potential.

“If the Government starts delivering, investor confidence – both foreign and local – will rise significantly,” added Bell.

He also pointed out that Sri Lanka stands to gain if it can better harness its strategic geographic location with greater integration with giant India and China, which are big growth markets. “Sri Lanka should grab the opportunities arising from its locational advantage. With greater integration, Sri Lanka can be a conduit for China and India and a growth hub for South Asia as well,” he added.

Bell acknowledges that local investors have been subdued but understands their confidence is picking up.

“Politics is noise and too much of it unfortunately lets buying of good companies cheap. The market appears to have reacted to this noise. Ideally politics must align with economy more. If this happens Sri Lanka can be on a good growth path,” emphasised Bell.

Seemingly seeing signs of such alignment taking place and with hope of it gathering momentum in the near term, Bell said: “The Frontier Markets Fund is investing today so as to reap better returns as the economy takes off.”

According to Bell, T. Rowe Price believes many frontier market economies are experiencing a common long-term path to prosperity. “Despite what is often heard in the press, there is currently more peace across the world than at any other time in history – with only a handful of conflicts occurring. This has allowed democracy to take hold in an increasing number of frontier outposts, with politicians incentivised to make widespread economic improvements in order to stay in power,” said Bell, who has two decades of investment experience.

“These economic reforms often lead to an influx of foreign investment, which in turn leads to strong economic growth and provides a tailwind to the corporate sector where we can find many exciting investment ideas. We aim for long-term capital growth by investing in a diverse portfolio of high quality companies from across the entire frontier universe,” emphasised Bell.

Prior to joining the firm in 2011, he was Head of Emerging Markets Equities Research at Pictet Asset Management (the institutional asset management arm of Pictet & Cie, the largest private bank in Switzerland), where his responsibilities included managing several funds, as well as a team of analysts. 

During his time at Pictet, Bell was directly responsible for managing investments in the emerging Europe, Middle East and Africa region as part of the global emerging markets and the standalone Middle East and Africa portfolios. Bell also managed the Global Emerging Markets High Dividend Yield Equity Strategy. Bell holds the Investment Management Certificate (IMC) and has a Bachelor of Science Degree from Exeter University.

Founded in 1937, T. Rowe is a global investment management organization with $861.6 billion in assets under management as of 31 March. It is focused on delivering global investment management excellence that investors can rely on-now and over the long term. T. Rowe Price’s disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research. 

worthiness


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Does the statement above motivate more foreign investors??..

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum