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05Oct2007
One year since the start of Advance Eastern Europe
Today, October 4, 2007, is one year since the start of the public offering of Advance Eastern Europe Fund. The Fund, managed by Karoll Capital Management, is the first in Bulgaria, which invests on the emerging markets of Eastern Europe – Russia, Romania, Ukraine, Croatia, Serbia and Bulgaria.
The growth potential and the long experience of Karoll in the management of individual portfolios in these markets were highly estimated by investors and currently the net asset value of Advance Eastern Europe is close to 15 million euro.
The expectations of the asset management company for the one year return of 20-25% were fulfilled as the fund returned +34% in its first year of existence. The fund considerably outperformed its benchmark – the Morgan Stanley MSCI Eastern Europe index – which for the same period returned a little over 16%.
Advance Eastern Europe Fund successfully weathered two serious shocks on the world financial markets caused by problems in the US mortgage market and credit concerns. In these critical for the investors months, the net asset value of the fund registered only a minimal correction compared to similar investment funds operating in Eastern Europe.
“When we prepared the investment strategy of Advance Eastern Europe, we paid special attention on the strong volatility of East European markets. The selected approach generated a more balanced performance and also smaller corrections in the moments of market turmoil. In the future the fund portfolio will maintain a structure, allowing for a high return for investors in the long term (for periods of 5 or more years) while keeping lower volatility compared to individual market indexes. The expected return for the next 12 months is about 24% with a risk of 14.3%”, said Alexander Nikolov, portfolio manager of Advance Eastern Europe.
The plans of the asset management company Karoll Capital Management for the development of the fund include a possible entrance into new markets in Eastern Europe – mainly neighboring countries and some of the former Soviet republics.
More information for the investment strategy, the portfolio and the current condition of Advance Eastern Europe, please see the Investment overview for Q3 of 2007.
