'CLSA's investment in CT Smith marks new beginning'
The CLSA Group of Hong Kong bought a 25 percent stake in CT Smith
Holdings Ltd, with an investment of around US $ 2 million, to better
sell Sri Lanka to frontier market investors, officials of the two
companies said last week.
CLSA, Global Chief Operating Officer Donald Skinner said that after a
20-year partnership between the two companies, this investment marks the
beginning of a new chapter in the development of CT Smith Holding as a
client-centric brokerage, investment banking and asset management group
with a strong reputation for integrity and independence in the Sri
Lankan capital market.Chairman of CT Smith Holdings Cecilia Muttukumaru
said, “Both groups are renowned for the quality and independence of
their products and the partnership will assist CT Smith to expand its
already strong relationship with foreign institutional investors and
deliver an enhanced service offering to clients.”
Skinner said that the joint venture will focus on investors from the
US, UK and Hong Kong who want to get into frontier markets.“Our clients
are already investing in frontier markets in the Asia region such as
Pakistan, Bangladesh and Vietnam. Sri Lanka is an easier market to
enter,” he said.
Consultant to CT Smith, Marianne Page said that in 2010 and 2011
there was a net foreign investment outflow but a net foreign inflow in
2013. During the early period of this year there has been a net foreign
Normally the stocks of blue chip companies and banking and insurance
companies have high foreign demand and investors are increasingly
interested in the consumer goods sector in Sri Lanka. CT Smith brought
about 40 percent of the foreign investment in the stock market in 2013,
CT Smith has a reputation for research of high standard and with the
new partnership, CSLA will distribute CT Smith's economic and equity
research. Skinner said that research is a key component of this deal.
With the new investment CT Smith Holdings will change its name to CT
CLSA Holdings Ltd. CT Smith Stockbrokers will be renamed CT CLSA
Securities. CT Capital will go as CT CSLA Capital (Pvt) Ltd and Comtrust
Asset Management (Pvt) Ltd, a unit trust management company, will
operate under the same name.