CTX 10 to take CSE to world and masses

by Channa Kasturisinghe

While striving to reach investors globally, the Colombo Stock Exchange is also facing the challenge of bringing the investment market to the masses, Michael Priess, a leading economist specialising in the Asian Region said.

Priess is also a Director of Ceylon Asset Management (CAM)Company Ltd. which will launch Ceylon Index Fund on October 21.

He said that in Sri Lanka there is a misconception that the stock market is only for rich people which has restricted the involvement of a lot of potential investors at the regional level in the market.

"In the meantime, there is the need to raise awareness about the local investment market globally. Most foreign investors in countries like the United States, Europe, Japan and the Middle East are still not really aware of the investment opportunities in Sri Lanka," Priess said.

He said the Ceylon Index Fund which tracks the Colombo Top 10 (CTX)index will take the country's top ten companies to the rest of the world and to a wide range of local investors.

"The CSE is the top performing stock markets in Asia this year and one of the best performing markets in the world. However, most foreign investors have not participated in the market due to the perception of it being a high risk emerging market. Our Company plans to extend its reach to the rest of the world," Priess said.

Priess is a Director and Research fellow of the Asian Bond Market Forum and a guest lecturer for the Central Bank of China.

Romesh Jayawickrama, a top Asian equity specialist and a Director of CAM said the index fund is meant for term investment and because one invests in the top 10 largest firms in the country there will be less speculation.

"For a mere investment of Rs. 10,000 anyone can access the Fund and gain exposure to the growth of the largest and most heavily traded companies on the CSE including Dialog, John Keells, SLT, LIOC, Commercial Bank, Distilleries Company of Sri Lanka and Asian Hotels.

The Fund will track the CTX 10 by investing proportionally in each of the top ten companies selected into the index each quarter, while 10 percent of the fun may also participate in selected IPOs.

For investors seeking alternative exposure we have introduced the Ceylon Income Fund," he said.

The Chairman of the CAM is Eraj Wijesinghe while Mohan Tissanayagam, and D. Fernando are Directors.