FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ 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
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ 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
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» What will happen tomorrow?
by Mr. X Today at 4:09 pm

» "MFL" DEAL to 12 RS (multi finance plc)
by Wickyz Today at 3:00 pm

» FUTURE of BROWNS INVESTMENT PLC (BIL)
by ONTHEMONEY Yesterday at 6:53 pm

» Sri Lanka Investment Forum 2021
by samaritan Yesterday at 1:06 pm

» Related party transactions in Banks cause concerns
by ChooBoy Fri May 07, 2021 10:59 pm

» Daily Foreign Transactions
by Pradeep90 Fri May 07, 2021 10:24 pm

» Japanese money laundering via PABC Bank raise CB eye brows
by Lotus Eater Fri May 07, 2021 9:34 pm

» Principal governmental and regulatory policies that govern the banking sector in Sri Lanka
by Lotus Eater Fri May 07, 2021 9:18 pm

» Ban of chemical fertilizers is a great news
by ADVENTUS Fri May 07, 2021 6:29 pm

» DIPD/HAYC/HAYL
by ADVENTUS Fri May 07, 2021 1:11 pm

» Peoples leasing technically positive Target Price Rs 20
by Eranx Fri May 07, 2021 11:30 am

» PEOPLE'S LEASING & FINANCE PLC
by Eranx Fri May 07, 2021 11:29 am

» GLAS will be winner with Super Gain.
by Promoney Thu May 06, 2021 10:30 pm

» What happens in the market is absolutely 100% out of your control. Stock market for beginners
by Asoka Samarakone Thu May 06, 2021 9:45 pm

» Synergies of possible merger between Sampath Bank and PABC
by CHRONICLE™ Thu May 06, 2021 5:42 pm

» ACCESS ENGINEERING ( AEL.N )
by ADVENTUS Thu May 06, 2021 1:50 pm

» Prime Lands Residencies Limited (PLR)
by Nandun Thu May 06, 2021 10:42 am

» EXPOLANKA HOLDINGS PLC (EXPO.N0000)
by Captain Wed May 05, 2021 11:51 pm

» Growing Fear
by Wickyz Wed May 05, 2021 8:15 pm

» CONGRATULATIONS TO FINANCIAL CHRONICLE ON THIS 11TH YEAR
by CHRONICLE™ Wed May 05, 2021 3:31 pm

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Investing in today's volatile markets challenging

Investing in today's volatile markets challenging

Go down  Message [Page 1 of 1]

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics
Everyone knows that investing involves a degree of risk. Even investments which are considered least risky, can sometimes be found shaky in changing circumstances. In September 2008, the 'A' rated Lehman Brothers collapsed, and those who held deposits and shares in Lehman Brothers lost heavily, exploding the myth about 'A' ratings! In the UK, the Royal Bank of Scotland was saved by the Government with a massive intervention, but not before investors lost badly. In August 2011, the US Government struggled desperately to pass legislation through Congress to enable them to increase their borrowing limits from September 1, 2011. If by some unfortunate political quirk, the US Congress was unable to pass the law to increase its borrowing beyond the then existing level,there was a very real possibility that the US Government would have defaulted on its debt of over $ 10 trillion!

It is in this immensely volatile and tension-packed environment that international reserve managers of the world function.

They have to safeguard their funds and at the same time deliver reasonable returns. The delivery of reasonable returns has become even more challenging, because many Western governments, including the US, UK and Germany have reduced their policy interest rates to almost zero, while Japan also has a near zero interest rate.

Therefore, investors have to diversify at least a small proportion of their funds to other types of investments, including securities of countries that yield good returns, but with a higher risk rating. Sri Lanka, as an emerging nation, has benefited from this investment stance of many international investors.

In fact, although Sri Lanka has a relatively low 'B1'sovereign rating from Moodys', that rating has not discouraged hundreds of foreign investors from investing $ 3,000m (Rs.400 b) in its international sovereign bonds, and about $ 2,500m (Rs 335 b) in its Government bills and bonds.

A total of about Rs.735 billion! Obviously, the higher returns yielded by the Sri Lankan securities would be an attraction in the global low interest environment. But, at the same time, a large majority of investors, when they take decisions to invest, will also consciously select a few lesser rated securities to allocate a small proportion of their total funds, to earn higher returns.

While such a diversification enables the Funds to spread their risk, the strategy also allows them to generate reasonable returns on the reserves under management. This type of investment strategy is now common all over the world among those who manage large funds and should be understood in that context, since the performance of a fund is evaluated on the total returns it generates to its members, while enhancing the long-term value of the Fund.

So far, from all available reports, there is no dispute that both the EPF fund managers and the international reserve managers of the Central Bank have been able to generate returns that are well above average.

They have also ensured the consistent growth of their respective funds and enhanced its value. On a dispassionate evaluation sans political rhetoric, it may even be said that the Central Bank fund managers have provided outstanding value to its stakeholders. There is irrefutable evidence to this fact when the results of the two funds are considered.

The EPF has provided returns well above the inflation rates and other long term fund rates,and consistently enhanced the value of the Fund.

The International Reserve Fund Managers have delivered gains of $ 430 m or approximately 6.6 percent on its average reserves, in 2011, which is above the Fed Fund average rate of just 0.25 percent in that year, while enhancing the value of the total reserve.

In these circumstances, the Central Bank must be given the space to take their investment decisions in an independent manner,as enjoyed by fund managers globally.

They must not be subjected to intense harassment, as being practised by some members of the local opposition. At a recent seminar, it was pointed out that the Central Bank has more than 500 of the best and the brightest brains in this country, including economists, IT specialists, lawyers, fund managers and accountants, in its cadre. From all accounts, these professionals are also continuously trained in relevant areas of operations of the Central Bank, at the best institutions in the world.

On that basis, these professionals must be held accountable for the delivery of the outcomes they are responsible for and not subjected to vituperative abuse on a transaction by transaction basis, with unsubstantiated accusations of mismanagement, corruption and fraud, to satisfy the political agendas and egos of a few politicians. Such attacks blatantly disregard the primary principles of portfolio investment, risk analysis, risk parameters and diversification policies.

Therefore, suspicions could be legitimately raised that those attacks may be designed to push the public service to a stage of "policy paralysis", in a manner similar to what is taking place in India's public service today. In that regard, it may perhaps also be worthwhile to investigate whether such suspicions have validity.

In the meantime, a new breed of so-called "investment experts" have also emerged who are today busy, dissecting the Central Bank's investments on a piece meal basis.

It is clear that they do not wish to recognise or understand the principles of "portfolio investment" practices. They are quick to attribute ulterior motives whenever a particular investment has not performed adequately at a particular time. But they are quiet when profits are realised in other transactions lead to over all profits and gains being made by the relevant Central Bank Fund Managers.

These 'experts' also conveniently ignore large unrealised gains in a bull market, but are vociferous whenever the portfolio carries unrealised losses in a bear market! This type of selective stance therefore casts serious doubts about their bonafides, and hopefully, a discerning public will soon see through the machinations of these "experts" and understand the motives behind these sinister exercises.
http://www.sundayobserver.lk/2012/07/22/fin38.asp

sriranga

sriranga
Co-Admin
Points to be noted, interesting.

http://sharemarket-srilanka.blogspot.co.uk/

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics

"The EPF has provided returns well above the inflation rates and other long term fund rates,and consistently enhanced the value of the Fund."

Doesn;t seem to be bad as it was hyped then huh? Issue is what are our expectations with funds like EPF . Finance company FD rate returns or are we satisfied around TB returns?

Whitebull


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
I also think there are some sinister intentions in criticisms by some of this so called experts but it does not justify realy controversial buyings done by EPF when the market was at the peak or with very high premiums.If those buyings were done by novice retailors it was quite understandable but these fund managers are called to be professionals.

By the way if a moderator can add the word EPF to the title I think it would be better.

Sponsored content


Back to top  Message [Page 1 of 1]

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