I Capital Partners launches Sri Lanka’s Equity White List

Monday, 14 September 2020 00:41 -     - {{hitsCtrl.values.hits}}

Fulfilling a long-standing need in the market, I Capital Partners Ltd. (ICP), has launched a “white list” of Sri Lankan Listed equities. 

The concept of screening listed stock based on the core business of enterprises, their investment activities, etc., are popular in capital markets around the world including prominent global indexes such as the Dow Jones (DJI), Standard and Poors (S&P), Financial Times Stock Exchange (FTSE) and Bursa Malaysia Islamic Index who have their own stock screening methodology. Speaking about the launch of the white list, research unit of ICP said, “The purpose of the “Sri Lanka Equity Whitelist” is to attract foreign direct investments from the Middle East and other investors who seek investments in “ethical equity”. We expect this to be sought by leading asset managers as well. ICP put its propriety research into effect to re-publish the “Sri Lanka Equity Whitelist” that contains identified listed stocks in the Colombo stock exchange in the belief that time is right to attract discerning investors to Sri Lankan shores.” 

The ICP Sri Lanka White List is currently prepared in accordance with three accepted stock screening methodologies put forth by world renowned bodies and carefully vetted by ICP’s in house Shari’ah advisor and committee. 

These include: Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI); Dow Jones’s Islamic Market index Screening and ICP’s Whitelist Screening Criteria.

In order to be part of the White List, companies must exclude certain non-acceptable products, business activities, certain types of income and expenses and meet certain levels of ratios from the assets and liabilities. This exclusions and limitations are considered healthy for the organisations and thereby to the investors as well. The white list is prepared on a quarterly basis and made available for subscribers digitally. 

Ethics, good governance, and environment are fast becoming significant criteria for sustainable investment decisions. With shorter business, economic cycles more emphasis is being placed on profits with a purpose and profit without guilt. The white list not only allows for capital markets to be noticed by investor markets but is also gives recognition and direction to companies who have the intention to create an impact through their enterprise. I Capital partner published the very first whitelist for Namal Amana Equity fund in 2007 which is a five-year close ended unit trust fund.

More information on the Sri Lanka Equity White List can be accessed at www.icp.lk where there is an option to direct any queries as well.