New Europe TOP20 Subfund 1. Russia TOP20 Subfund 2. Global Flexible Subfund 3. Emerging Europe Bond Subfund 4. World Equity Subfund of Funds 5

Transcription

1 Content New Europe TOP20 Subfund 1 Russia TOP20 Subfund 2 Global Flexible Subfund 3 Emerging Europe Bond Subfund 4 World Equity Subfund of Funds 5 Baltic Fund 6

2 New Europe TOP20 Subfund Finasta New Europe TOP20 subfund has a concentrated portfolio of 15 - region s best investment ideas (close to minimum allowed by UCITs). Every pick comes from a thorough fundamental bottom-up analysis. Concentrated portfolio means maximum focus on each investment idea, high leverage on best picks. Higher concentration comes with the risk of higher deviation in subfund s net asset values. Aim of the subfund - to achieve maximum equity return while investing in Eastern Europe ex Russia region. Recommended term of investment - more than 5 years.,0,0,0 24,5 24,0 23,5 23, Monthly 3,74% YTD 2,56% Since inception -9,47% Summer period was volatile in Central Eastern Europe markets in June sellers were more active but during the remaining two months of summer losses were almost recovered as benchmark CECEX decreased by 2.3% in summer. Finasta New Europe TOP20 subfund performed much better with a profit of 0.5%. Structure of the subfund remained similar during the period: assets were invested in fundamentally attractive companies with strong balance sheet. Polish market that accounts for two thirds weight in the benchmark CECEX, was worrying about the rumours of changes in pension reforms. Guidelines were announced in the early September and caused a slump in the market. It didn t have a major impact for the subfund as assets are widely diversified. It could be expected that autumn for the markets would be more positive and active after a nervous period in Poland. Subfond data 42,962 mln. LTL 12,443 mln.,22 30 Management fee 1,5 % Success fee 15 % Fondul Proprietatea Bank Pekao SA KGHM Polska Miedz SA Raiffeisen Bank International AG Powszechna Kasa Oszczednosci Bank Polski S.A. 7,7% 7,5% 5,1% 5,0% Investments by industries Investments by countries Commercial Banks,1% Poland,3% Oil, Gas & Consumable Pharmaceuticals Diversified Financial Metals & Mining 11,2% 8,5% 7,7% Austria Romania Slovenia 13,7% 11,7% 9,1% Diversified Electric Utilities Specialty Retail Insurance Food Products 5,0% 4,6% 4,3% 4,3% Hungary Czech Republic Estonia Ukraine 4,6% 4,3% 8,2% Cash and money market 8,6% Serbia 4,0%

3 Russia TOP20 subfund Finasta Russia TOP20 subfund has a concentrated portfolio of 15 - region s best investment ideas (close to minimum allowed by UCITs). Every pick comes from a thorough fundamental bottom-up analysis. Concentrated portfolio means maximum focus on each investment idea, high leverage on best picks. Higher concentration comes with the risk of higher deviation in subfund s net asset values. Aim of the subfund - to achieve maximum equity return while investing in Russia and CIS region. Recommended term of investment - more than 5 years Monthly 0,63% YTD -8,64% Since inception -20,14% There was no recovery in Russian market this summer. The fund has lost 3.5% in three months while benchmark RTS is down by 4.8%. Inflows are still scarce in BRIC markets, but some stabilization signs are appearing at the end of summer. The Fund is down 8.6% YTD while RTS has lost 15.9% YTD. In recent weeks the geopolitical risks are on the rise due to war in Syria. As a result the oil price is heading north, which is good for Russian economy. This should help the undervalued Russian stocks to gain the attention of investors. The other positive factor is Russian government plan to set fixed % dividend payout for the state companies. If the plan is imposed, the companies like Gazprom will have 4-6% dividend yield. Subfond Data 10,936 mln. LTL 3,167 mln. 23,13 30 Management fee 1,5 % Success fee 15 % Gazprom GDR Sberbank M Video Protek Bank St Petersburg OJSC 7,4% 6,7% 6,1% 9,8% Investments by industries Oil, Gas & Consumable Fuels 43,5% Commercial Banks 13,5% Specialty Retail Metals & Mining Trading Companies & Distributors Food Products Real Estate Management & Development Cash and money market 6,7% 6,5% 5,7%

4 Global Flexible Subfund Finasta Global Flexible Subfund is considered as actively managed subfund. Subfund investments are diversified and allocated among different regions and assets classes: equity, bonds and other fixed income securities, hedge funds, commodities and currencies. Aim of the subfund - to seek maximum return with risk lower than equity investments. Recommended term of investment years. 28, Monthly -2,39% YTD -1,72% Since inception -10,70% Subfund data Finasta Global Flexible Subfund fell 4.7% during summer. In June risky assets were hit by fears that Federal Reserve Bank may taper its monetary stimulus as US economy is showing some signs of recovery. In July markets rebounded on better than expected macro data and Q2 earnings reports, as well as calming talks from US and Europe central bankers to not to hike rates any time soon. However, August again brought markets under pressure as tensions of war conflict in Syria increased. In the beginning of summer one of the largest Fund s positions equities of Romanian holding Fondul were sold in a favor of perspective Bank of Saint Petersburg stocks. Also investments in strong performing Japan equities were made and underperforming gold ETF was dropped. In June, as market volatility increased, the weight of risky assets was reduced in the Fund, although it soon was recovered back in start of July as risks of market correction started evaporating. At the same time the exposure of developed market equities was increased in the portfolio, while hedge fund investments were reduced by half. 2,374 mln. LTL 0,687 mln.,86 30 Management fee 2 % Success fee 15 % MSCI World ETF (DB X-Trackers) Comstage ETF DAX TR MSCI World ETF (ComStage) Bank St Petersburg OJSC PowerShares FTSE RAFI US 1000 Fund 8,6% 8,6% 9,0% 9,7% Investments by asset class Investments by regions Equity 62,9% Global developed markets,8% Cash and money market 16,1% CEE North America 14,3% 17,4% Bonds 7,6% Alternative investments 12,4% Hedge funds and other 7,4% Europe Commodities 5,9% Asia 4,7%

5 Emerging Europe Bond Subfund Finasta Emerging Europe Bond Subfund invests to the strong credit profile emerging Europe governments and companies debt securities. Subfund Managers combine riskier (corporate) and safer (government) bonds in order to achieve higher total return. Aim of the subfund - to secure the balanced capital growth of the subfund. Recommended term of investment years. 34, , , , Monthly 0,16% YTD 1,92% Since inception 17,76% Subfund data Bond markets struggled the whole summer. Tensions over the expected tapering of Federal Reserve Bank monetary stimulus increased in June and put bond prices under pressure. July was rather favourable again with calming comments from US and Euro zone central bankers on further accommodative monetary policy being among main triggers for this. In August market moods became negative again on Syria tensions. Nevertheless, the Fund, which risk level was kept low, managed to achieve a positive +0.1% return during the three-month period and outperformed its benchmark, which dropped respectively by - 2.9%. The Fund returned almost +2% from the start of this year. During summer period no major portfolio changes were made. As spreads stay historically low and risky-free yields are under pressure recently, the Fund s investment duration and risk are going to be kept low for a foreseeable future. The Fund carries on with the attractive risk-return trade-off as its average yield till maturity stays at 4% and modified duration only 2.3 at the end of August. Investments by countries 38,017 mln. LTL 11,011 mln. 34,10 30 Management fee 1,0 % Russia Slovenia Hungary Lithuania Croatia Romania Kazakhstan Cash and money market 13,9% 12,7% 11,8% 9,6% 7,9% 14,4% 19,7% VTB Bank 5,01% 2015/09/29 6,8% MOL 3,875% 2015/10/05 6,5% Zhaikmunai 10,5% 2015/10/19 OTP Bank 5,% 2016/09/19 6,2% Croatia 6,5% 2015/01/05 5,2%

6 World Equity Subfund of Funds Finasta World Equity Subfund of Funds invest to other funds that invest in global equities. To ensure greater subfund security and diversification, subfund investment strategy is not limited by investment regions or sectors. Aim of the Subfund - seeks higher than average global equity investment return. Recommended term of investment years ,5 28, Monthly -2,72% YTD -1,53% Since inception -10,37% Subfund data Finasta World Equity Subfund of Funds fell 5.5% during summer but managed to outperform its benchmark, which dropped by 5.6%. In June risky assets were hit by fears that Federal Reserve Bank may taper its monetary stimulus as US economy is showing some signs of recovery. In July markets rebounded on better than expected macro data and Q2 earnings reports, as well as calming talks from US and Europe central bankers. However, August again brought markets under pressure as tensions of war conflict in Syria increased. As market tensions increased in June, the weight of risky assets in the Fund was reduced. However, as it failed to grow into a larger correction, the risk exposure was recovered back at the start of July. At the same time the exposure of strongest performing developed markets was increased in the portfolio and also investments in perspective Russian and Turkish equities were made. Nevertheless, the last ones were sold at the end of August as emerging markets failed to gain momentum and market tensions strengthened again. Investments by regions 1,385 mln. LTL 0,401 mln.,96 30 Management fee 1% Global developed markets North America CEE Europe Global emerging markets 10,5% 4,9% 18,7% 53,9% Cash and money market 2,7% PowerShares FTSE RAFI US 1000 Fund 9,6% Amundi ETF MSCI World 9,5% MSCI World ETF (Lyxor) 9,5% MSCI World ETF (DB X-Trackers) 9,4% The Lyxor ETF DAX

7 Baltic Fund Baltic Fund is investing into shares of companies listed on Baltic Stock Exchange or enterprises actively operating in the Baltic states. The fund is striving for maximum return by assuming high risk level. The fund focuses on long-term investments by identifying attractive economy sectors and picking particular companies. Aim of the fund - to achieve maximum equity return while investing in Baltics region. Recommended term of investment - more than 5 years. 24, , , Monthly -1,00% YTD 12,87% Since inception -9,16% Baltic markets maintained its growth during the summer period Finasta Baltic fund rose 3.2% in 3 summer months, performance YTD was almost 13%. Assets of the fund kept on growing from 5.6 million LTL in spring to the current 8.5 million LTL as the fund demonstrated strong results and Baltic markets remained attractive. Fresh capital was invested in the same companies to maintain the similar structure of the fund. Multi-utilities company City Service, underwear producer Silvano fashion group and pharmaceuticals company Olainfarm, the biggest investments of the fund, showed strong 2nd quarter results. 3 dairy companies are expected to continue their growth trend so accounts for 1/6 assets of the fund. Despite the rapid stock market growth most of the stocks are still undervalued. It could be expected that the market will demonstrate a new high after a small correction. Subfond data Date of subfund inception ,459 mln. LTL 2,450 mln.,31 30 Management fee 2 % City Service Silvano Fashion Group Olainfarm Rokiškio sūris AB Grindeks 4,9% 8,0% 9,1% 8,9% Investments by industries Investments by countries Specialty Retail Food Products 14,2% 17,3% Lithuania 37,3% Pharmaceuticals Multi - Utilities 9,1% 12,8% Estonia 33,1% Construction & 6,8% Commercial Banks Hotels, Restaurants & 5,7% 4,6% Latvia 16,8% Food & Staples Retailing Marine 4,4% 4,2% Baltics 2,7% Electric Utilities Cash and money market 4,2% 10,1% Cash and money market 10,1%