In this issue

During economic crises, investors switch to real assets like real estate and commodities for two reasons. First, their low correlation with financial assets, like stocks and bonds, and second their being a hedge against inflation’s corroding power. Economic crisis after crisis has vindicated this strategy. In Sri Lanka, real estate is a popular investment asset class, and accessible commodities like gold also serve the same purpose. As evidence, look at the large size of the market for gold-backed loans.

In this climate, who could have predicted that the best investment asset class during 2017 and 2018 would turn out to be a financial asset: fixed income securities. Fixed income’s inflation-adjusted returns (real returns) have been in high single digits for over two years, despite poor economic growth and a murky outlook.

For Sri Lanka’s vast owners of simple financial assets (a bank-fixed deposit), this unwitting outcome has been a cushion from the worst of the crisis, as every economic crisis before has ruined the small gains ordinary Sri Lankans have accumulated during periods of low inflation. Fixed income securities (including fixed deposits) being the best investment asset class has leveled the playing field between sophisticated investors and ordinary households during this crisis.

Analysts still think this strategy, which is working for the unsophisticated as much as for portfolio managers, will continue into 2019. In this 2019 edition of the Investor’s Guide, we attempt to explore options beyond this obvious fixed income strategy. However, we must confess that other investment strategies are tough to justify.

Echelon Magazine Description:

Intelligent Storytelling

The one thing that will define the Echelon magazine will be the quality of the storytelling. Echelon,published monthly, will cover in depth Sri Lanka’s most successful businesses, examine their winning strategiesand profile their leaders in immersive stories. Great stories are also never limited to words, and our approach includes rich photography, bold graphics and leading edge design which together will make for a compelling read.

But business doesn’t start and end in a boardroom;it extends to the golf club greens, to international travel and to pursuits that blurthe lines between commercial venture and sheer passion. The Echelon team will present the best in business and lifestyle coverage that will appeal to an exclusive and affluent readership: an otherwise hard to reach demographic.

Content will be developed by one of the most experienced and proven teams of editors, financial journalists, photographers and designers in the country.This team has already raised the bar for powerful and expertly crafted business news. Shamindra Kulamannage, will lead the editorial team.

The reputation of Echelon is being built on the separation between editorial and advertising. However we are also looking for the most creative and impactful new formats that can be applied in our magazines, iPad app as well as website to help our clients reach our audience. We are flexible and creative and we will have a solution for every single advertiser who wants to reach our audience.

We are passionate about creative results and about working with our advertisers to help them create bespoke multi platform creative solutions with our in house creative team and of course our sales team.

Echelon will be a great place to show off the products and capabilities of our clients because they will be surrounded by an editorial product that is expertly crafted, full of integrity and intelligence.