Guide to Listed Funds and B0nds

Transcription

1 Guide to Listed Funds and B0nds Riga Stock Exchange 2004 EFFICIENT SECURITIES TRANSACTIONS

2 Contents Investment Funds 4 Baltic Index fonds 6 Internacionālo akciju fondu fonds 8 Parex Krievijas Akciju fonds 10 Valsts obligāciju fonds 12 Parex Austrumeiropas Obligāciju fonds 14 Parex Latu Obligāciju fonds 16 AIF Naudas Tirgus Fonds 18 Latu rezerves fonds 20 Nekustamā īpašuma fonds 22 Parex Baltijas Nekustamā Īpašuma fonds 24 Parex Baltijas Juras Sabalansētais fonds 26 Parex Austrumeiropas Sabalansētais fonds 28 Bonds 30 Government Treasury bills and bonds 32 Latvijas Hipotēku un zemes banka 34 Baltic Trust Bank 38 Akciju komercbanka Baltikums 42 Nordic Investment Bank 46 Parex banka 50

3 Guide to Listed Funds and B0nds Daiga Auziņa-Melalksne, Chairman of Management Board, Riga Stock Exchange 2 GUIDE TO LISTED FUNDS AND BONDS

4 Riga Stock Exchange 2004 Dear reader, How do people know they are starting a tradition? They don t. At least we did not know far back in 1997, when we published our first Guide to Listed Companies. Yet, the publication has survived through years, and in 2004 we published, together with our colleagues from Tallinn and Vilnius stock exchanges, Guide to Baltic Market, introducing the reader to the equities listed on the three Baltic Markets - Estonian, Latvian and Lithuanian. Traditions sometimes are tricky. You sort of feel an obligation to carry on, though you understand it has already become redundant and obsolete. On the other hand, if you happen to have a tradition that is in a continuous development and evolution, it is a genuine pleasure to proceed. I am happy to share this pleasure with you, offering our new and at the same time traditional publication Guide to Latvian Funds and Bonds, this time guiding you through the Riga Stock Exchange listed fixed instruments and fund units. Year 2004 has marked positive and long-lasting changes in the history of the Baltic states and the Baltic Stock Exchanges. Admission to the EU, creation of joint Baltic market, joining the SAXESS trading platform were just the key events. Past year was a productive one for the Riga Stock Exchange in terms of diversity of listed products. Apart from one new equity listing on our Main list, 9 new funds were listed on the Fund list. Starting with March, 2004, it became possible for asset management companies to list funds in currencies other than the national currency LAT. Also, trading of funds unites on the RSE trading system became possible. We are also proud that in 2004 ice was broken for debt securities issuers at the very end of the year Baltic Trust Bank issued mortgage bonds (2 issues) and listed on the RSE; one more commercial bank Akciju komercbanka Baltikums - issued and placed corporate notes at the end of 2004, and listed at the beginning of The year was busy also for the old issuers, like Hipotēku un zemes banka, who listed two new series of mortgage bonds. We hope for new debt securities issuers in 2005: Parex banka corporate notes listing early in the year is a good start. GUIDE TO LISTED FUNDS AND BONDS 3

5 Investment Funds GENERAL OVERVIEW Investment funds in Latvia showed another year of rapid asset growth, earning a high degree of confidence among investors. The assets of Latvia registered open-end funds surged by 76.5% to 29 million Ls. As of the end of 2004, 9 asset management companies and 16 investment funds have been established and registered in Latvia since the beginning of the registration process which began five years prior. The first fund of funds was launched this year Internacionālo akciju fondu fonds managed by Baltikums Asset Management, investing through investment funds into a diversified portfolio of international equities. Local insurance companies also got involved in investment fund distribution when Sampo Dzīvība become the first life insurance company in Latvia to offer unit-linked life insurance policies with performance linked to Sampo funds and domestic Parex funds. Investment funds' net assets EUR million * * - as of All investment funds in Latvia are subject to EU laws regulating investment companies and are fully compliant with EU UCITS directive Nr 85/611. Latvian investment fund activities are supervised by the Financial and Capital Market Commission of Latvia. In addition to Latvia-domiciled funds, several foreign investment fund families such as Aviva Funds, Franklin Templeton Investment Funds and World Investment Opportunities Funds are registered for public distribution in Latvia as well as several foreign investment companies SEB Lux Equity Fund Management Company, SEB Lux (F) Management Company of Luxembourg and Hansa Investeerimisfondid of Estonia. The wide range of foreign and local funds provides an attractive selection of savings instruments for local investors. The funds are distributed by largest banks in Latvia Parex banka with its subsidiary Parex Asset Management, Hansabanka and Unibanka. INVESTMENT FUND LISTING AND TRADING ON THE RSE Currently there are 11 open-end funds managed in Latvia. All are owned by local commercial banks and distributed through retail branch networks. Of the 11 funds, 10 are listed (4 traded) on the Riga Stock Exchange. 2 closed-end investment funds are listed on the RSE (1 traded) as well. Investment funds listed on the Riga Stock Exchange Open-end funds Asset management company 1 Baltikums Asset Management 2Baltikums Asset Management 3 Baltikums Asset Management 4 Hansa Fondi 5 SEB Unifondi 6 Parex ieguldījumu pārvaldes sabiedrība 7 Parex ieguldījumu pārvaldes sabiedrība 8 Parex ieguldījumu pārvaldes sabiedrība 9 Parex ieguldījumu pārvaldes sabiedrība 10 Parex ieguldījumu pārvaldes sabiedrība Closed-end funds Asset management company 1 SEB Unifondi 2Parex ieguldījumu pārvaldes sabiedrība Fund name BALTIC INDEX fonds Internacionālo akciju fondu fonds Valsts obligāciju fonds Naudas tirgus fonds Latu rezerves fonds Parex Latu Obligāciju fonds Parex Baltijas Juras Sabalansētais fonds Parex Austrumeiropas Sabalansētais fonds Parex Austrumeiropas Obligāciju fonds Parex Krievijas Akciju fonds Fund name Nekustamā īpašuma fonds Parex Baltijas Nekustamā Īpašuma fonds RSE code BINFR IAFFR GOBFR NATFR LARFR PLOFR PBSFR PASFR PAOFR PKAFR RSE code NIPFR BNIFR Type equity fund fund of funds fixed income fund money market fund money market fund fixed income fund balanced fund balanced fund fixed income fund equity fund Type real estate fund real estate fund 4 GUIDE TO LISTED FUNDS AND BONDS

6 Sector overview Trading or listing on the Riga Stock Exchange provides numerous benefits to participants: RSE membership in the Nordic-based OMX Exchange Group significantly increases a fund s visibility and reach to potential investors both locally and internationally. Professionally managed publicity and marketing of the funds; An increase in the fund s prestige and profile; An increase in liquidity potential; A secondary market for closed-end funds. Investment fund listing and trading requirements are compliant with OMX Exchange requirements and provide a high level of transparency for investors while remaining straightforward for local fund managers. MARKET SHARE OF OPEN-END INVESTMENT FUNDS The largest change in market share in 2004 was a significant increase in assets of Parex open-end funds (256%) which increased overall market share from 19% to 39%. Despite of market share decrease last year Hansa Fondi with 52% market share still is the largest asset manager of openend funds in Latvia. The market share of Optimus Fondi and Baltikums Asset Management are respectively 6% and 3%. Performance of open-end investment funds in 2004 BALTIC INDEX fonds Parex Baltijas Jūras Sabalansētais fonds Parex Austrumeiropas Sabalansētais fonds Parex Austrumeiropas Obligāciju fonds Hansa Austrumeiropas obligāciju fonds Valsts obligāciju fonds Parex Latu Obligāciju fonds Naudas tirgus fonds Latu rezerves fonds 25.69% 9.61% 8.07% 6.17% 5.30% 4.72% 3.66% 3.06% 2.98% INVESTMENT FUNDS PORTFOLIO BREAKDOWN BY ASSET CLASSES The most material change during the year was the increase in equity investment and investment fund units, which increased from 4.7% to 13.2% (as of ). The geographical allocation of these assets is clearly focused on Emerging Europe as more than half of the industry assets are invested in the Baltic States and more than a third in Russia and CIS countries. At the same time, Latvian exposure has decreased since the Corporate debt securities 42.5% Other debt securities 0.2% Government debt securities 44.1% Equities and investment fund units 13.2% beginning of 2004 from 68.7% to 47.2% illustrating higher diversification of investments and an ongoing search for investment opportunities outside of a fairly small local market. INVESTMENT FUNDS MARKET OUTLOOK Despite the recent high growth rates, the investment fund market is still in the very beginning of its expansion. The increasing confidence in the industry together with a rapid growth in wealth of local retail and mass affluent investors, provides the basis for heightened demand of investment products, other than bank deposits. A maturing industry should also attract the attention of foreign private and institutional customers in the years to come, which will prove to be an additional growth driver for the industry as a whole. Finally, pension reform and further development of the unit-linked products market will also contribute to the overall growth. GUIDE TO LISTED FUNDS AND BONDS 5

7 Baltic Index fonds (Baltic Index Fund) Asset management company: IJSC Baltikums Asset Management INVESTMENT STRATEGY Fund invests assets in the best and solid Baltic companies shares, which are included in BALTIX index list and are traded in the official list of the Baltic States stock exchanges (Riga Stock Exchange, Tallinn Stock Exchange, Vilnius Stock Exchange). Investment fund with high degree of risk. Investment objective is to achieve capital growth according to the fund s policy and diversification of investment risks. Fund type open-end Base currency: LVL Net asset value : Inception date: Listing: Riga Stock Exchange Ticker: BINFR ISIN: LV Management fee: 2 % Subscription fee: 3 % Redemption fee: 0 % Performance of Baltic Index Fund (NAV per unit, since inception) LVL Portfolio breakdown by country as of Republic of Estonia 29% Republic of Latvia 30% Republic of Lithuania 41% 6 GUIDE TO LISTED FUNDS AND BONDS

8 Equity fund Top 10 holdings as of Name % of Fund 1 Hansabank Snaige Lietuvos Telekomas SAF Tehnika Rokiškio Suris Merko ehitus Norma Vilniaus Vingis Pieno Žvaigždes Latvijas kuģniecība 4.44 Fund s performance in base currency Performance % % % 9.06 % - Fund s assets LVL LVL LVL LVL LVL Net asset value LVL LVL LVL LVL LVL Fund s annualized performance in base currency 1-year 2-year 3-year Since inception % % % % CONTACT INFORMATION Fund manager: Ralfs Drēska Mazā Pils iela 13, Rīga, LV-1050, Latvija Phone: Fax: baltikums@asset.baltikums.com Website: Distributor: Akciju komercbanka Baltikums Mazā Pils iela 13, Rīga, LV-1050, Latvija Phone: Fax: bank@baltikums.com Distributor: AS SEB Latvijas Unibanka Unicentrs, Ķekavas pag., Rīgas raj., LV-1076, Latvija Phone: Fax: sekretars@seb.lv GUIDE TO LISTED FUNDS AND BONDS 7

9 Internacionālo akciju fondu fonds (International Equity Fund of Funds) Asset management company: IJSC Baltikums Asset Management INVESTMENT STRATEGY An open-end investment fund Internacionālo akciju fondu fonds invests in the world s leading equity funds, which invest in the worlds leading companies shares, listed on the stocks exchanges of member countries of Europe Union and Organization for Economic Co-operation and Development. The investment fund with high degree of risk, the fund s assets are widely geographically diversified to minimize investment risk and optimize capital growth. Fund type open-end Base currency: EUR Net asset value : Inception date: Listing Riga Stock Exchange Ticker: IAFFR ISIN: LV Management fee: 1.50 % Subscription fee: 1 % Redemption fee: 0 % Performance of International Equity Fund of Funds (NAV per unit, since inception) EUR Portfolio breakdown by currency as of EUR 46% GBP 7% CHF 5% JPY 12% USD 30% 8 GUIDE TO LISTED FUNDS AND BONDS

10 Equity fund Top 10 holdings as of Name % of Fund 1 Aviva Equity Fund UBS (Lux)Equity Fund SEB Lux Equity Fund Franklin Templeton Investment Funds Julius Baer Multistock UBS (CH)Equity Fund - Japan UBS (CH)Equity Fund - USA UBS (CH)Equity Fund - France UBS (CH)Equity Fund - Germany UBS (CH)Equity Fund - Great Britain 4.31 Fund s performance in base currency 2004 Performance % Fund s assets EUR Net asset value EUR Fund s annualized performance in base currency 6 - month 1-year 2-year Since inception % % CONTACT INFORMATION Fund manager: Ralfs Drēska Mazā Pils iela 13, Rīga, LV-1050, Latvija Phone: Fax: baltikums@asset.baltikums.com Website: Distributor: Akciju komercbanka Baltikums Mazā Pils iela 13, Rīga, LV-1050, Latvija Phone: Fax: bank@baltikums.com Distributor: AS SEB Latvijas Unibanka Unicentrs, Ķekavas pag., Rīgas raj., LV-1076, Latvija Phone: Fax: sekretars@seb.lv GUIDE TO LISTED FUNDS AND BONDS 9

11 Parex Krievijas Akciju fonds (Parex Russian Equity fund) Asset management company: AS Parex ieguldījumu pārvaldes sabiedrība INVESTMENT STRATEGY The fund seeks a high level of capital growth by investing in a selected list of Russian companies equities exhibiting the highest growth potential, but currently undervalued. Fund is a diversified array of the most liquid equity holdings representing primarily oil, gas, energy and telecommunications sectors. Fund return is a combination of stock value growth and dividend payoffs. In line with overall Russian equity market growth, Fund it is allowed to invest in regional companies, as well as construction, metallurgy, and transportation sectors of Russian economy. Fund type open-end Base currency: USD Net asset value : 8.61 Inception date: Listing: Riga Stock Exchange Ticker: PKAFR ISIN: LV Management fee: 2.00% Subscription fee: up to 3.00% Redemption fee: 0% Performance of Parex Russian Equity fund (NAV per unit, since inception) USD Portfolio breakdown by country as of Energy 12.61% Others 18.90% Oil & gas 29.93% Telecoms 19.18% Metallurgy 19.38% 10 GUIDE TO LISTED FUNDS AND BONDS

12 Equity fund Top 10 holdings as of Name % of Fund 1 Transneft (preffered) LUKoil Norilsk Nickel Sberbank Surgutneftegaz MTS ADR Surgutneftegaz (preffered) Gazprom ADR RAO EES Vimpelcom ADR 2.55 Fund s performance in base currency 2004 Performance % Fund s assets 3,426,125 Net asset value 8.61 Fund s annualized performance in base currency 1-year 2-year 3-year Since inception % CONTACT INFORMATION Fund manager: Sergejs Medvedevs Basteja bulvāris 14, Rīga LV-1050, Latvija Phone: Fax: ieguldijumi@parex.lv Website: Distributor: Parex Asset Management Basteja bulvāris 14, Rīga LV-1050, Latvija Phone: Fax: pam@parex.lv Distributor: AS Parex banka Smilšu iela 3, Rīga LV-1522, Latvija Phone: Fax: info@parex.lv GUIDE TO LISTED FUNDS AND BONDS 11

13 Valsts obligāciju fonds (Government Bond Fund) Asset management company: IJSC Baltikums Asset Management INVESTMENT STRATEGY The fund mainly invests assets in government debt securities of the Baltic States and member countries of Organisation for Economic Cooperation and Development and banks deposits. Investment fund with stabile capital growth and low degree of risk, attained by investing in government debt securities with high credit rating. Fund type open-end Base currency: LVL Net asset value : Inception date: Listing: Riga Stock Exchange Ticker: GOBFR ISIN: LV Management fee: 1.5 % Subscription fee: 1 % Redemption fee: 0 % Performance of Government Bond Fund (NAV per unit, since inception) LVL Portfolio breakdown by maturity as of year 56% 3-year 4% 6-year 1% 10-year 39% 12 GUIDE TO LISTED FUNDS AND BONDS

14 Fixed income fund Top 10 holdings as of Name % of Fund 1 LR Government 10-year T-bond, 14/02/ LR Government 5-year T-bond, 08/05/ LR Government 5-year T-bond, 29/08/ LR Government 5-year T-bond, 24/03/ LR Government 5-year T-bond, 26/01/ LR Government 10-year T-bond, 02/04/ Latvijas Unibanka Bonds 3 -year, 28/01/ LHZB AH Mortgage Bonds 10-year, 15/08/ LHZB AI Mortgage Bonds 6-year, 15/08/ Fund s performance in base currency Performance 4.72 % 3.27 % 9.59 % - Fund s assets LVL LVL LVL LVL Net asset value LVL LVL LVL LVL Fund s annualized performance in base currency 1-year 2-year 3-year Since inception 4.72 % 4.09 % 7.09 % 5.79 % CONTACT INFORMATION Fund manager: Ralfs Drēska Mazā Pils iela 13, Rīga, LV-1050, Latvija Phone: Fax: baltikums@asset.baltikums.com Website: Distributor: Akciju komercbanka Baltikums Mazā Pils iela 13, Rīga, LV-1050, Latvija Phone: Fax: bank@baltikums.com Distributor: AS SEB Latvijas Unibanka Unicentrs, Ķekavas pag., Rīgas raj., LV-1076, Latvija Phone: Fax: sekretars@seb.lv GUIDE TO LISTED FUNDS AND BONDS 13

15 Parex Austrumeiropas Obligāciju fonds (Parex Eastern European Bond fund) Asset management company: AS Parex ieguldījumu pārvaldes sabiedrība INVESTMENT STRATEGY The fund seeks maximum total return by investing in fixed income securities of emerging markets issuers, locating primarily in the Baltic states, Central and Eastern Europe. Fund manager utilizes its extensive competence in the area. Fund is diversified by currencies; related options and futures contracts may also be used for currency hedging purposes. Fund is allowed to invest in fixed income securities having investment grade or higher credit ratings. Fund type open-end Base currency: USD Net asset value : Inception date: Listing: Riga Stock Exchange Ticker: PAOFR ISIN: LV Management fee: 1.50% Performance fee: 10% over 6 months USD LIBOR + 3% Subscription fee: up to 3.00% Redemption fee: 0% Performance of Parex Eastern European Bond fund (NAV per unit, since inception) Nov Sep Jul May Mar Jan Nov Sep Jul May Mar-03 Portfolio geographical breakdown as of Romania 4.80% Others 5.57% EU ex. Latvia 5.90% Latvia 14.32% Russia 39.48% Ukraine 15.49% Kazakhstan 14.44% 14 GUIDE TO LISTED FUNDS AND BONDS

16 Fixed income fund Top 10 holdings as of Name % of Fund 1 Turanalem 29/05/ % Kazkommerts 08/05/ % Gazprom 25/04/ % Sberbank 24/10/ % UralSib bank 06/07/ % CFR Marfa 10/12/ % VTB Capital 11/12/ % MTS 30/01/ % Kyivstar 17/08/ % City of Moscow 12/10/ % 2.54 Fund s performance in base currency Performance 6.17% 9.90% Fund s assets 8,688,621 3,206,492 Net asset value Fund s annualized performance in base currency 1-year 2-year 3-year Since inception 6.17% % CONTACT INFORMATION Fund manager: Sergejs Medvedevs Basteja bulvāris 14, Rīga LV-1050, Latvija Phone: Fax: ieguldijumi@parex.lv Website: Distributor: Parex Asset Management Basteja bulvāris 14, Rīga LV-1050, Latvija Phone: Fax: pam@parex.lv Distributor: AS Parex banka Smilšu iela 3, Rīga LV-1522, Latvija Phone: Fax: info@parex.lv GUIDE TO LISTED FUNDS AND BONDS 15

17 Parex Latu Obligāciju fonds (Parex Lats Bond fund) Asset management company: AS Parex ieguldījumu pārvaldes sabiedrība INVESTMENT STRATEGY The fund seeks maximum total return, consistent with a strong capital preservation. Fund primary holdings include Latvian government debt, corporate debt of larger Baltic based companies, and bank deposits. Fund holdings are denominated primarily in Latvian lats. Fund type open-end Base currency: LVL Net asset value : Inception date: Listing: Riga Stock Exchange Ticker: PLOFR ISIN: LV Management fee: 1.00% Subscription fee: up to 3.00% Redemption fee: 0% Performance of Parex Lats Bond fund (NAV per unit, since inception) LVL Oct Feb Jul Nov Mar Aug Dec-04 Portfolio geographical breakdown as of EU ex. Latvia 9.33% Others 13.14% Latvia 77.53% 16 GUIDE TO LISTED FUNDS AND BONDS

18 Fixed income fund Top 10 holdings as of Name % of Fund 1 Latvia 26/01/ % Latvia 22/04/05 0% Latvia 24/03/ % Latvia 04/02/05 0% Latvia 08/05/ % City of Moscow 28/04/ % LHZB Mortgage bonds 15/08/ % Parex banka deposit 10/03/ % Latvia 26/08/05 0% NORD/LB deposit 22/03/ % 4.08 Fund s performance in base currency Performance 3.66% 6.55% 0.00% Fund s assets 329, , ,540 Net asset value Fund s annualized performance in base currency 1-year 2-year 3-year Since inception 3.66% 5.04% % CONTACT INFORMATION Fund manager: Sergejs Medvedevs Basteja bulvāris 14, Rīga LV-1050, Latvija Phone: Fax: ieguldijumi@parex.lv Website: Distributor: Parex Asset Management Basteja bulvāris 14, Rīga LV-1050, Latvija Phone: Fax: pam@parex.lv Distributor: AS Parex banka Smilšu iela 3, Rīga LV-1522, Latvija Phone: Fax: info@parex.lv GUIDE TO LISTED FUNDS AND BONDS 17

19 AIF Naudas Tirgus Fonds (Money Market Fund) Asset management company: AS IPS Hansa Fondi INVESTMENT STRATEGY The objective of the open-end investment fund "Naudas Tirgus Fonds" is to achieve continuous growth of value of the capital over a short period of time in compliance with the investment policy and restrictions set by the Fund Prospectus. Investment into the Fund might be considered as an alternative to short-term deposits with banks. The property of the Fund is invested only in debt securities (promissory notes and bonds issued or guaranteed by the state, municipalities and central banks, as well as promissory notes and bonds issued by financial institutions and other companies) and in term deposits with banks. The property of the Fund is invested only in securities of issuers from the Baltic States and OECD countries Fund type open-end Base currency: LVL Net asset value : Inception date: Listing: Riga Stock Exchange Ticker: NATFR ISIN: LV Management fee: 0.80% (0.6%) Subscription fee: - Redemption fee: - Performance of Money Market Fund (NAV per unit, since inception) LVL Portfolio breakdown by maturity as of > 1 year 7.82% 6-12 months 25.92% < 3 months 50.49% 3-6 months 15.77% 18 GUIDE TO LISTED FUNDS AND BONDS

20 Money market fund Top 10 holdings as of Name % of Fund 1 Term deposit in Hansabanka LR 5-year bonds 24/03/ LR 1-year bills 22/04/ Unibanka bond 28/01/ LR 12-months bills 07/10/ Nord/LB Latvia bond 04/12/ LR 6-months bills 17/12/ LR 12-months bills 08/07/ LR 6-months bills 04/02/ LR 12-months bills 26/08/ Fund s performance in base currency Performance 3.06% 2.94% 4.17% 5.54% 3.40% Fund s assets Net asset value Fund s annualized performance in base currency 1-year 2-year 3-year Since inception 3.06% 2.97 % 3.26 % 3.82 % CONTACT INFORMATION Fund manager: Raimonds Vesers Balasta dambis 1a, Riga LV-1048, Latvija Phone: Fax: Raimonds.Vesers@hansabanka.lv Website: Distributor: AS Hansabanka Kaļķu iela 26, Rīga, LV-1050, Latvija Phone: Fax: Renars.Karass@hansabanka.lv GUIDE TO LISTED FUNDS AND BONDS 19

21 Latu rezerves fonds (The Lat Reserve Fund) Asset management company: Joint stock investment management company SEB Unifondi INVESTMENT STRATEGY Lat Reserve Fund is an open-end money market mutual fund, which combines the characteristics of the Current Account, the Short-term Account and the Open-ended Deposit Account, but has higher liquidity than the deposit accounts and may yield a higher return. Objective of the fund is to provide investors with a low risk investment vehicle. The fund invests in highly liquid and low risk government and corporate fixed income securities issued by governments and corporations, and short-term bank deposits. Fund type open-end Base currency: LVL Net asset value : Inception date: Listing: Riga Stock Exchange Ticker: LARFR ISIN: LV Management fee: 0.95% Subscription fee: 0.00% Redemption fee: 0.00% Performance of Lat Reserve Fund (NAV per unit, since inception) LVL Portfolio breakdown by maturity as of months 24.06% 6-12 months 12.79% 1-2 year 6.27% >2 year 3.03% < 3 months 53.85% Portfolio breakdown by investment instruments as of Government bonds and bills 42.91% Motgage bonds 9.59% Corporate bonds 3.76% Bank deposits 43.74% 20 GUIDE TO LISTED FUNDS AND BONDS

22 Money market fund Top 10 holdings as of Name % of Fund 1 Republic of Latvia T-bill 22/04/ Deposit 03/01/2005 (Unibanka of Latvia) Mortgage and Land Bank of Latvia Bond 15/02/ Republic of Latvia T-bill 26/08/ Republic of Latvia Bond 26/01/ Deposit 07/01/2005 (Unibanka of Latvia) Republic of Latvia T-bill 03/06/ Deposit 22/02/2005 (Sampo Bank) Deposit 16/03/2005 (Mortgage and Land Bank of Latvia) Republic of Latvia T-bill 07/10/ Fund s performance in base currency (LVL) Performance 2.98% 2.86% - Fund s assets Net asset value Fund s annualized performance in base currency (LVL) 1-year 2-year 3-year Since inception 2.98% 2.92% % CONTACT INFORMATION Fund manager: Normunds Igolnieks Unicentrs, Ķekavas pag., Rīgas raj., LV-1076, Latvija Phone: , Fax: normunds.igolnieks@seb.lv Website: Distributor: AS SEB Latvijas Unibanka Unicentrs, Ķekavas pag., Rīgas raj., LV-1076, Latvija Phone: Fax: andis.artmanis@seb.lv GUIDE TO LISTED FUNDS AND BONDS 21

23 Nekustamā īpašuma fonds (The Real Estate Fund) Asset management company: Joint stock investment management company SEB Unifondi INVESTMENT STRATEGY The objective of the closed-end investment fund is to ensure long-term capital gains by investing in real estate in Latvia and other Baltic countries, taking advantage of real estate market development potential. Fund assets will be invested mainly in the real estate, but temporarily available cash will be invested in fixed income securities in order to gain additional income. The Real Estate Fund will invest in properties with positive cash flow, in new developments, as well as in properties with a predictable increase of value. Fund type closed-end Base currency: USD Net asset value : Inception date*: Listing: Riga Stock Exchange Ticker: NIPFR ISIN: LV Management fee: 1.77% Subscription fee: up to 4.50% Redemption fee: 0.00% * Restructuring: on distribution of a second issue of fund shares began. The fund prospectus was amended at the same time. Until the size of the fund was relatively small and no investments were made. Performance of the Real Estate Fund (NAV per unit, since inception) USD Portfolio breakdown by investment instruments as of Government bonds 24.69% Real estate 23.40% Mortgage bonds 23.96% Cash 27.95% 22 GUIDE TO LISTED FUNDS AND BONDS

24 Real estate fund Top holdings as of Name % of Fund 1 Cash Republic of Latvia Bond 24/03/ Mortgage and Land Bank of Latvia Bond 15/08/ Real Estate, Land Strēļi Fund s performance in base currency (USD) Performance Fund s assets Net asset value Fund s annualized performance in base currency (USD) 1-year 2-year 3-year Since Restructuring % CONTACT INFORMATION Fund manager: Normunds Igolnieks Unicentrs, Ķekavas pag., Rīgas raj., LV-1076, Latvija Phone: , Fax: normunds.igolnieks@seb.lv Website: Distributor: AS SEB Latvijas Unibanka Unicentrs, Ķekavas pag., Rīgas raj., LV-1076, Latvija Phone: Fax: andis.artmanis@seb.lv GUIDE TO LISTED FUNDS AND BONDS 23

25 Parex Baltijas Nekustamā Īpašuma fonds (Parex Baltic Real Estate fund) Asset management company: AS Parex ieguldījumu pārvaldes sabiedrība INVESTMENT STRATEGY The investment objective of the Fund is to maximise total return, through of a combination of rental income and capital appreciation by investing in residential, commercial, retail property and other real estate objects in the Baltic countries. Changes in real estate values or economic conditions can have a positive or negative effect on return. Fund type closed-end Base currency: USD Net asset value : Inception date: Listing: Riga Stock Exchange Ticker: BNIFR ISIN: LV Management fee: 1.50% Performance fee: 10% over 6 months USD LIBOR + 3% Subscription fee: up to 5.00% Redemption fee: 0% Performance of Parex Baltic Real Estate fund (NAV per unit, since inception) USD Jun Sep Dec Mar Jun Sep Dec-04 Real estate breakdown as of Land plot 63.86% Commercial property 5.69% Residential property 30.45% 24 GUIDE TO LISTED FUNDS AND BONDS

26 Real estate fund Fund s holdings as aof Real Estate location % of Fund 1 Land plot, Riga, Raņķa dambis Ground area, district Riga, Garkalne (near Lake Baltezers) Residential property and Land plot, Riga, Mežaparks, Lībekas street Land plot, district Riga, Mārupe Residential property and Land plot, Riga, Mežaparks, Līgatnes street Land plot, Riga, Krustpils street Commercial property, Riga, Tallinas street Residential property, Riga, Kalnciema street 1.23 Fund s performance in base currency Performance 12.09% - Fund s assets 9,822,179 8,467,585 Net asset value Fund s annualized performance in base currency 1-year 2-year 3-year Since inception 12.51% % CONTACT INFORMATION Fund manager: Sergejs Medvedevs Basteja bulvāris 14, Rīga LV-1050, Latvija Phone: Fax: ieguldijumi@parex.lv Website: Distributor: Parex Asset Management Basteja bulvāris 14, Rīga LV-1050, Latvija Phone: Fax: pam@parex.lv Distributor: AS Parex banka Smilšu iela 3, Rīga LV-1522, Latvija Phone: Fax: info@parex.lv GUIDE TO LISTED FUNDS AND BONDS 25

27 Parex Baltijas Jūras Sabalansētais fonds (Parex Baltic Sea Balanced fund) Asset management company: AS Parex ieguldījumu pārvaldes sabiedrība INVESTMENT STRATEGY The fund maintains a moderate to conservative risk approach. Up to 30% of the fund s holdings may be invested in equities, and the rest in fixed income instruments. Geographical focus of the fund is around Baltic Sea region countries, such as Sweden, Finland, Latvia, Estonia, Russia, etc. fund manager utilizes its extensive competence in the area. Fund type open-end Base currency: LVL Net asset value : Inception date: Listing: Riga Stock Exchange Ticker: PBSFR ISIN: LV Management fee: 1.50% Subscription fee: up to 3.00% Redemption fee: 0% Performance of Parex Baltic Sea Balanced fund (NAV per unit, since inception) LVL Oct 17-Dec 17-Feb 17-Apr 17-Jun 17-Aug 17-Oct 17-Dec 17-Feb 17-Apr 17-Jun 17-Aug 17-Oct 17-Dec Portfolio geographical breakdown as of EU ex. Latvia 24.99% Others 3.78% Russia 28.44% Latvia 42.79% 26 GUIDE TO LISTED FUNDS AND BONDS

28 Balanced fund Top 10 holdings as of Name % of Fund 1 Latvia 14/02/ % Gazprom 27/09/ % City of Moscow 12/10/ % LHZB Mortgage bonds 15/08/ % PGNIG Finance 30/10/ % WEST LB 09/06/ % Parex banka deposit 25/11/ % Latvia 08/05/ % Latvia 26/01/ % Parex Baltijas Juras Akciju fonds 2.30 Fund s performance in base currency Performance 9.61% 10.18% 0.40% Fund s assets 1,782, , ,760 Net asset value Fund s annualized performance in base currency 1-year 2-year 3-year Since inception 9.61% 9.80% % CONTACT INFORMATION Fund manager: Sergejs Medvedevs Basteja bulvāris 14, Rīga LV-1050, Latvija Phone: Fax: ieguldijumi@parex.lv Website: Distributor: Parex Asset Management Basteja bulvāris 14, Rīga LV-1050, Latvija Phone: Fax: pam@parex.lv Distributor: AS Parex banka Smilšu iela 3, Rīga LV-1522, Latvija Phone: Fax: info@parex.lv GUIDE TO LISTED FUNDS AND BONDS 27

29 Parex Austrumeiropas Sabalansētais fonds (Parex Eastern European Balanced fund) Asset management company: AS Parex ieguldījumu pārvaldes sabiedrība INVESTMENT STRATEGY The investment objective of the fund is to achieve long-term capital growth by investing mainly in debt and equity securities issued or guaranteed by the governments, municipalities, central banks and credit institutions, as well as in debt and equity securities issued by corporates in the Eastern European countries. Fund type open-end Base currency: EUR Net asset value : Inception date: Listing: Riga Stock Exchange Ticker: PASFR ISIN: LV Management fee: 1.50% Performance fee: 10% over 6 months EUR LIBOR + 3% Subscription fee: up to 3.00% Redemption fee: 0% Performance of Parex Eastern European Balanced fund (NAV per unit, since inception) EUR Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Portfolio geographical breakdown as of Kazakhstan 5.43% Ukraine 5.92% Others 8.94% Romania 10.64% Russia 28.82% Latvia 21.38% EU ex. Latvia 18.87% 28 GUIDE TO LISTED FUNDS AND BONDS

30 Balanced fund Top 10 holdings as of Name % of Fund 1 CFR Marfa 10/12/ % City of Moscow 12/10/ % City of Moscow 28/04/ % PGNIG Finance 30/10/ % SNP Petrom 02/10/ % Gazprom 27/09/ % Croatian Bank Rec.&Dev. 11/02/ % Romania 02/07/ % MTS 19/11/ % Ukraine 15/03/ % 2.44 Fund s performance in base currency Performance 8.07% -0.10% Fund s assets 4,070, ,871 Net asset value Fund s annualized performance in base currency 1-year 2-year 3-year Since inception 8.07% % CONTACT INFORMATION Fund manager: Sergejs Medvedevs Basteja bulvāris 14, Rīga LV-1050, Latvija Phone: Fax: ieguldijumi@parex.lv Website: Distributor: Parex Asset Management Basteja bulvāris 14, Rīga LV-1050, Latvija Phone: Fax: pam@parex.lv Distributor: AS Parex banka Smilšu iela 3, Rīga LV-1522, Latvija Phone: Fax: info@parex.lv GUIDE TO LISTED FUNDS AND BONDS 29

31 Bonds Alongside with equities trading, fixed income instrument market has a significant role in the Latvian capital market. The total value of listed fixed income instruments at the end of 2004 was EUR 660 million, and the total trading volume in secondary market was EUR 157 million. Latvian Government continued to build the most active issuer in the Latvian Bond market: the value of the Government Treasury bills and bonds listed on the Riga Stock Exchange was EUR 580 million. Latvijas Hipotēku un zemes banka is the leading issuer of mortgage bonds. At the end of the year mortgage bonds of 11 series, offering a variety of maturities, the longest being 10 years, with aggregate face value over EUR 70 million were available in the market. Latvijas Hipotēku un zemes banka is using the Riga Stock Exchange infrastructure for primary placement for the new mortgage bond issues. Latvijas Unibanka and Nordic Investment Bank (NIB) are two other corporate bond issuers. As to the latter, this is already the second issue of Nordic Investment Bank lat-denominated bonds in Latvia (the previous matured in September of 2002). Year 2004 was remarkable for bringing in two new actors in the Latvian mortgage bond market. Baltic Trust Bank issued two series of mortgage bonds in LVL and in USD; both were listed on the Baltic bond list at the end of the year. At the very end of the year one more bond issuer joined the market Akciju komercbanka Baltikums issued corporate notes, listed early in The past year also brought a novelty in the Latvian capital market: since March, the listing an trading in other currencies, namely, USD and EUR, has been made possible. Value of debt securities registered at the LCD (LVL million) Government debt securities Corporate debt securities and mortgage bonds Corporate debt securities Mortgage bonds 30 GUIDE TO LISTED FUNDS AND BONDS

32 Sector overview Specifications of the debt instruments traded on the Riga Stock Exchange as of Type of security ISIN code Trading Currency Maturity Coupon close best close best Nominal value code (%) bid bid (dirty) (yield, %) Latvian Government bills and bonds LV LVGT000005E LVL ,420, year T-bond LV LVGB LVL ,060, M T-bill LV LVGT000005A LVL ,300, M T-bills LV LVGT000005G LVL ,000, M T-bill LV LVGT000005B LVL ,000, M T-bills LV LVGT000005H LVL ,120, M T-bill LV LVGT000005C LVL ,000, M T-bill LV LVGT000005D LVL ,000, M T-bill LV LVGT000005F LVL ,650, year T-bond LV LVGB LVL ,000, year T-bond LV LVGB LVL ,955, year T-bond LV LVGB LVL ,296, year T-bond LV LVGB LVL ,150, year T-bond LV LVGB LVL ,925, Latvijas Hipotēku un zemes banka mortgage bonds AF LV LMBB LVL ,000, AD LV LMBB LVL ,000, AG LV LMBB LVL ,000, AI LV LMBB LVL ,000, AJ LV LMBBFLOT08 LVL ,000, AK LV LMBBFLOT09 LVL ,000, AH LV LMBB LVL ,150, BA LV LMBBFLOT11 USD ,000, AL LV LMBB060012LVL ,000, AM LV LMBB LVL ,862, BB LV LMBBFLOT14 USD ,000, Baltic Trust Bank mortgage bonds 3-year LVL LV BTBBFLOT07 LVL ,745, year USD LV BTBBFLOT09 USD , Corporate bonds Latvijas Unibanka LV UNOB LVL ,946, Nordic Investment Bank LV NIBB LVL ,000, GUIDE TO LISTED FUNDS AND BONDS 31

33 Government Treasury bills and bonds Government Treasury bills and bonds serve as domestic borrowing instrument. Public debt market in Latvia started back in 1993 when the first government debt securities were issued. The issuing volumes depend on the current Government borrowing policies, the status of the budget, the refinancing needs of public debt, and the liquidity of public finances. The issuer, on behalf of the Government, is State Treasury. Latvian Government debt securities are classified according to their maturity: T- bills (maturing in 12 months or sooner; sold at a discount); medium-term T-bonds (maturing in 3-5 years); long-term T-bonds (maturing after 5 years). The latter are coupon bonds, the coupon payment scheduled, typically, on semiannual basis for medium-term bonds and on annual basis for long-term bonds. In primary market the bidders for government debt paper may participate in two types of auctions: Competitive multi-price auctions (run jointly by Bank of Latvia and State Treasury): the bidders specify the amount they are bidding for as well as the discount/yield rate. Only banks are admitted to bidding. The bids are filled in starting with the lowest rates bid. Non-competitive fixed rate auctions (run jointly by the Latvian Central Depository and State Treasury): this is a novelty since Banks as well as brokerage companies that are the LCD participants may bid either on own or clients behalf - owing to facilitated accessibility, this expands the investor base for government fixed rate instruments. The bids should specify only the number of securities. As a result of the auction, the securities are allocated in proportion to the number bid. A typical breakdown between the number of securities allotted for the competitive multipleprice auction and non-competitive fixed price auction is 80% : 20%. A project has been started to replace the primary auctions for Latvian Government domestic securities from the Bank of Latvia and Latvian Central Depository to Riga Stock Exchange(trading via SAXESS system In 2004 Treasury continued to run new longterm domestic instrument programs by offering new 10 year T-bond. Also 6 and 12 month T-bills were offered to the domestic market. In order to cover government's funding requirement in 2005 Treasury is planning to run a new 5 year T-bond program as well as aiming on short term securities auctions. As lat is re-pegged to the euro currency Treasury is considering to change the funding strategy by concentrating on borrowings in euro market and shortening domestic issues. The Treasury is in process of changing the regulations on issuing Latvian Government domestic securities. Tap issues, buy-backs, switches (T-bond exchange programs) are under consideration. Latvian Central Depository is primary depository for all Government debt securities; secondary market is run on the infrastructure provided by the Riga Stock Exchange. Government debt securities may be used for monetary operations in Bank of Latvia. 32 GUIDE TO LISTED FUNDS AND BONDS

34 Central Government domestic/external debt, total, % of GDP, Domestic Debt External Debt Total debt Total Debt in % of GDP 12.2% 13.8% 13.3% 13.4% 13.4% LVL millions in annual terms, % of GDP 14.0% 13.5% 13.0% 12.5% 12.0% 11.5% 11.0% Domestic debt External debt Total debt in % of GDP Note: preliminary Latvian Government domestic securities outstanding as of Type of Nominal security value, LVL 6 month T-bill 20,225, month T-bill 55,114,000 3 year T-bonds 15, 993,900 5 year T-bonds 208, 296, year T-bonds 126, 075,900 Total outstanding 425, 705,400 6 month T-bils 5% 12 month T-bils 13% 3 year T-bonds 4% 5 year T-bonds 48% 10 year T-bonds 30% Latvian Government treasury bills and bonds yield (average, by time to maturity) Yield, % Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0-12 months to maturity 1-2 years maturity less then 3 years to maturity 3 over 3 year maturity GUIDE TO LISTED FUNDS AND BONDS 33

35 Latvijas Hipotēku un zemes banka COMPANY IN BRIEF The Mortgage and Land Bank of Latvia (Mortgage Bank) was established in 1993 and is fully stateowned. In line with the development concept of Mortgage Bank till the year 2005 approved by the government the Bank plans to continue with the activities promoting development of the national economy - lending to the small and medium-sized enterprises, granting of mortgage loans and issuing of mortgage bonds. Parallel to the function of a development bank, Mortgage Bank offers financial services all over Latvia, such as loans, settlement services, cash deposits, transactions with currency and securities and also services related to the privatisation process. SUBSTANTIAL SHAREHOLDERS Government of the Republic of Latvia (100%) The Mortgage Bank was the first bank in Latvia to start mortgage lending in the traditional sense of the word i.e. granting of long-term loans against the collateral of real estate. As at the end of the year 2004 the Mortgage Bank had issued mortgage bonds for 37,912 thousand lats. There are 11 series of mortgage bonds denominated in Latvian lats and US dollars in circulation. The mortgage bonds issued by Mortgage Bank have acquired their place in the financial market. The investors trust the Mortgage Bank as the issuer and the issued mortgage bonds as a safe and profitable financial instrument. The mortgage bonds issued by Mortgage Bank are listed on the Riga Stock Exchange Bond list. MORTGAGE BONDS name LMBB LMBB LMBB LMBB ISIN LV LV LV LV listing date number of bonds outstanding 38,624 50,000 30,000 10,000 currency LVL LVL LVL LVL nominal value issue value 3,862,400 5,000,000 3,000,000 1,000,000 maturity date coupon rate % GUIDE TO LISTED FUNDS AND BONDS

36 Core business: banking name LMBB LMBB LMBBFLOT08 LMBBFLOT09 ISIN LV LV LV LV listing date number of bonds outstanding ,000 30,000 30,000 currency LVL LVL LVL LVL nominal value issue value 3,000,000 2,000,000 3,000,000 3,000,000 maturity date coupon rate % (6-month (6-month RIGIBOR+0.5%) RIGIBOR+0.5%) name LMBB LMBBFLOT11 LMBBFLOT14 ISIN LV LV LV listing date number of bonds outstanding 11, , ,000 currency LVL USD USD nominal value issue value 1,150,000 10,000,000 10,000,000 maturity date coupon rate % (6-month (6-month LIBOR+0.8%) LIBOR+0.7%) CONTACT INFORMATION Investor relations contact: Gints Henkels Jānis Strubergs Doma laukums 4, Rīga, Doma laukums 4, Rīga, LV-1977, Latvija LV-1978, Latvija Telephone: Fax: gints.henkels@hipo.lv janis.strubergs@hipo.lv Internet home page: GUIDE TO LISTED FUNDS AND BONDS 35

37 Latvijas Hipotēku un zemes banka FINANCIAL INFORMATION (bank only) Balance sheet (LVL thousand) Assets Cash and balances with Central Bank 7,293 12,579 Fixed income securities 10,543 11,166 Due from credit institutions 15,274 5,325 Loans to customers 188, ,807 Equity securities available for sale Investments in subsidiaries and associated entities Intangible assets 909 1,283 Fixed assets 6,827 7,386 Other assets Prepayments and accrued income 1,562 1,910 Total assets 232, ,634 Liabilities Due to Central Bank - 3,293 Due to credit institutions 40,218 65,074 Customer deposits 128, ,778 Transit funds 4,158 3,489 Mortgage bonds 22,846 29,895 Other liabilities 1, Provisions and accrued expense 2,479 3,756 Deferred tax liabilities Subordinated liabilities 8,300 13,300 Total liabilities 208, ,679 Shareholder s equity Share capital 20,058 22,820 Reserve capital 3, Retained earnings 425 1,321 Total shareholder s equity 24,059 24,955 Total liabilities and shareholder s equity 232, ,634 Off balance sheet items Contingent liabilities 1,180 2,022 Financial commitments 10,903 13, GUIDE TO LISTED FUNDS AND BONDS

38 Core business: banking Profit/loss statement (LVL thousand) Interest income 15,434 13,175 Interest expense (6,993) (6,256) Net interest income 8,441 6,919 Fee and commission income 2,705 2,548 Fee and commission expense (312) (281) Net commission and fee income 2,393 2,267 Result from dealing with securities and foreign exchange Other operating income 1,759 1,515 Operating income 13,289 11,267 Staff costs (4,641) (3,862) Administrative expenses (4,097) (3,567) Depreciation and amortisation (1,258) (1,192) Profit/(loss) from revaluation of long-term investments Operating expenses (10,054) (8,533) Provision for impairment losses (1,424) (1,121) Profit before income tax 1,811 1,613 Income tax expense (237) (292) Net profit for the period 1,574 1,321 ROE 7.02% 7.49% ROA 0.78% 0.67% Auditors: PricewaterhouseCoopers SIA GUIDE TO LISTED FUNDS AND BONDS 37

39 Baltic Trust Bank COMPANY IN BRIEF JSC "BALTIC TRUST BANK" ("BTB") is a universal bank operating in Latvia and offering a wide range of retail and corporate products through a wide on-line network of branches, retail agencies, ATMs and Internet-banking system. BTB is an active trading member of the Riga Stock Exchange. BTB is the first private-owned bank in Latvia that has issued mortgage-covered bonds. BTB is a principal member of VISA, Europay and SWIFT. SUBSTANTIAL SHAREHOLDERS SIA "Finstar Baltic Investments" 49.76% JSC "Corowo Invest AG" 22.60% Andrejs Nilovs 7.52% Davids Taurinsh 7.41% Edgars Dubra 7.40% In 2005 the Bank is planning to proceed with more issues of medium term LVL/EUR denominated bonds. The bonds cover consists of private mortgages and obligations, guaranteed by Latvian municipalities. 38 GUIDE TO LISTED FUNDS AND BONDS

40 Core business: banking MORTGAGE BONDS Baltic Trust Bank Baltic Trust Bank 3YR LVL mortgage bonds 5 USD mortgage bonds name/trading code BTBBFLOT07 BTBBFLOT09 ISIN LV LV listing date number of bonds outstanding currency LVL USD nominal value issue value maturity date coupon rate RIGIBOR 6M % USD LIBOR 6M % CONTACT INFORMATION Investor relations contact: Uldis Zandars 13. janvāra iela 3, Rīga LV-1050, Latvija Telephone: Fax: U.Zandars@btb.lv Internet home page: GUIDE TO LISTED FUNDS AND BONDS 39

41 Baltic Trust Bank FINANCIAL INFORMATION Balance sheet (LVL) non-audited Assets Cash and placements with Bank of Latvia 9,665,897 21,934,000 Placements with banks 69,124,118 76,018,180 Loans 64,132,740 71,174,951 Fixed income securities 9,167,096 12,889,313 Non-fixed income securities 1,019, ,328 Investment in associated companies 0 0 Investment in related companies 147,534 21,150,795 Derivatives 72,605 20,556 Intangible assets 934, ,630 Fixed assets 5,562,974 6,207,756 Other assets 398,361 1,071,056 Accrued income and future expenses 560,017 - Total assets 160,785, ,011,565 Liabilities and equity capacity Liabilities to other banks 37,010,015 15,373,806 Deposits 106,834, ,769,108 Debt securities issued0 1,951,400 Derivatives 116,356 26,589 Other liabilities 4,790,301 5,154,960 Accrued expenses and future income 772,366 Provisions 319,264 Subordinated debt 0 5,000,000 Capital and reserves 10,942,714 13,735,702 Total capital and liabilities 160,785, ,011,565 Trust assets 0 1,406,000 Commitments 653,104 3,529,583 Future liabilities to clients 4,439,175 3,257, GUIDE TO LISTED FUNDS AND BONDS

42 Core business: banking Profit/loss statement (LVL) non-audited Interest income 5,839,554 6,714,206 Interest expenses -2,293,034-2,823,878 Net interest income 3,546,520 3,890,328 Fee income 3,512,459 4,168,899 Fee expenses -596, ,258 Financial instruments trade income 1,849,345 3,071,427 Financial instruments revaluation income 1,152 37,986 Total financial activities income 8,312,585 10,355,383 Other Income 731, ,779 Administrative expenses -5,820,863-6,360,390 Intangible and fixed assets depreciation -1,014,722-1,148,226 Other expenses -165,542-54,943 Expenses on provisions -273, ,307 Provisions reversal income 243, ,917 Profit 2,012,710 3,278,213 Extraordinary income 16,610 4,194 Extraordinary expenses - -40,626 Pre-tax net profit 2,029,320 3,241,781 Taxes -199, ,830 Net profit 1,830,058 2,839,951 ROE 20% 26% ROA 1.40% 1.70% Auditors: Deloitte & Touche GUIDE TO LISTED FUNDS AND BONDS 41

43 Akciju komercbanka Baltikums COMPANY IN BRIEF Akciju komercbanka Baltikums is one of the youngest private commercial banks in Latvia. Akciju komercbanka Baltikums, operating since June 2001, is 100% owned by JSC Baltikums bankas grupa. Akciju komercbanka Baltikums offers a wide range of banking services. The Bank has specialized in servicing export and import operations, trade finance and provide investment management services. Geographically the main Akciju komercbanka Baltikums markets are the Baltic states as well as Central and Eastern European countries. The priority in client financing for Akciju komercbanka Baltikums is trade finance as well as lending to transit and shipping companies. In the future, the Bank will continue to fortify its positions in these market segments using the broad experience of the Bank s management in executing trade finance projects and collaboration with JSC Kompass Grupa, which has its main activities in cargo forwarding, cargo expedition and ship agency. In the area of trade finance the Bank mostly finances trade transactions with cotton, grain, metal and sugar. In partnership with other specialized companies, Akciju komercbanka Baltikums offers export and pre-export financing services. Akciju komercbanka Baltikums has two subsidiaries: IPAS Baltikums Asset Management (main activity is management of investment funds, pension funds, state funded pension plans and portfolios of individual investors) and SIA Baltikums Līzings (leasing operations), as well as an equity investment in AS Atklātais Pensiju Fonds Baltikums (services for pension capital savings and establishment of pension plans for private pension funds). SUBSTANTIAL SHAREHOLDERS JSC "Baltikums bankas Grupa " % Akciju komercbanka Baltikums is seriously planning to develop its long-term financing program necessary for extending the successfully started trade finance and shipping finance. The public offering of notes is the first step in this direction. As a result, Akciju komercbanka Baltikums will improve the term structure of its balance sheet and will decrease its dependence on non-resident deposits. In the coming 3 years, Akciju komercbanka Baltikums expects to use equity, publicly issued debt securities and inter-bank loans as the major sources of financing. 42 GUIDE TO LISTED FUNDS AND BONDS

44 Core business: banking CORPORATE NOTES name BABBFLOT06 ISIN LV listing date number of notes outstanding 38,555 currency EUR nominal value 100 issue value 3,855, maturity date coupon rate 6-month EURIBOR + 3.5% CONTACT INFORMATION Investor relations contact: Tatjana Gaivoronska Mazā Pils iela 13, Rīga, LV-1050, Latvija Telephone: Fax: bank@baltikums.com Internet home page: GUIDE TO LISTED FUNDS AND BONDS 43

45 Akciju komercbanka Baltikums FINANCIAL INFORMATION (bank only) Balance sheet (LVL thousand) months non-audited Assets Cash and balances with the Bank of Latvia Due from credit institutions Loans Fixed income securities Shares and other non-fixed income securities available for sale Investments in associated entities 9 9 Investments in subsidiaries Derivatives - 3 Intangible assets Fixed assets Other assets Prepayments and accrued income Total assets Assets under management Liabilities and equity Due to credit institutions and the Bank of Latvia Customers deposits Other liabilities Deferred income and accrued expenses Provisions Total liabilities Shareholders equity and reserves Share capital Reserve capital and other reserves Retained earnings Profit for the year Total shareholders equity and reserves Total liabilities and equity Liabilities under management Off-balance items Contingent liabilities Other off-balance commitments Total off-balance items GUIDE TO LISTED FUNDS AND BONDS

46 Core business: banking Profit/loss statement (LVL thousand) months non-audited Interest income Interest expense Net interest income Fees and commission income Fees and commission expense Net fee and commission income Result from operations with securities and foreign exchange Other operating income Operating income Administrative expenses Depreciation and amortization Provisions for doubtful debts and off-balance sheet items Other operating expenses Total operating expenses Profit before tax Corporate income tax -9 - Profit after tax ROAA, return on average assets 1.26% 1.15% ROAE, return on average equity 6.10% 7.10% Auditors: KPMG Latvia SIA GUIDE TO LISTED FUNDS AND BONDS 45

47 Nordic Investment Bank COMPANY IN BRIEF The Nordic Investment Bank (NIB) was established in Signatories of the establishing agreement were the governments of Denmark, Finland, Iceland, Norway, and Sweden. Estonia, Latvia and Lithuania joined NIB in the beginning of NIB is a multilateral financial institution providing medium and longterm loans and guarantees. NIB finances public and private projects, both in and outside the member countries. High priority is given to investments furthering economic cooperation between the member countries. NIB's provision of credits is highly suited to investments that secure energy supplies, improve infrastructure or support research and development. Loans and guarantees are granted on market terms. NIB acquires the funds to finance its lending by borrowing on the international capital market. SUBSTANTIAL SHAREHOLDERS Sweden 37% Denmark 21% Finland 19% Norway 20% Iceland 1% Latvia 1% Estonia 1% Lithuania 2% NIB's supra national status and AAA/Aaa rating makes the Bank a strong credit in any currency. This has resulted in NIB having outstanding debt in 34 different currencies. NIB has been active in all the established currencies including Nordic currencies, EEK, LAT, USD, EUR, GBP, JPY and HKD. To broaden its funding base, NIB also actively studies possibilities and issues in emerging and developing markets, for example in Eastern Europe and Asia. To maintain a dialogue with investors and to find out the investors requirements and preferences, NIB actively carries out investor presentations and one-to-one meetings. NIB's asset and liability methods and risk management tools enable the Bank to issue in different currencies, structures, maturities and amounts. Issues are mainly documented under existing debt programmes but, when required, this can also be done with stand-alone documentation. NIB has a small, efficient and dedicated team that enables NIB to respond very quickly to funding proposals from both investors and arrangers. This also secures timely and smooth execution of all deals. NIB strives to maintain the highest possible credit rating. For this purpose, which is central to the Bank's operational concept, the Bank aims to be at the cutting edge in terms of financial risk management and cost effectiveness. 46 GUIDE TO LISTED FUNDS AND BONDS

48 Core business: banking CORPORATE BONDS NIB bonds name/trading code NIBB ISIN LV listing date 25-Jul-03 number of bonds outstanding 5,000 currency LVL nominal value 1,000 issue value 5,000,000 maturity date 25-Jul-07 coupon rate 4.25% CONTACT INFORMATION Investor relations contact: Kari Kukka, Head of Funding, Vice president PO Box 249, Helsinki, Finland Telephone: Fax: kari.kukka@nib.int Internet home page: GUIDE TO LISTED FUNDS AND BONDS 47

49 Nordic Investment Bank FINANCIAL INFORMATION Balance sheet (EUR thousand) Assets Cash and cash equivalents 2,996,669 3,480,964 Financial placements Placements with credit institutions 124, ,987 Debt securities 1,254,377 1,181,193 Other 8,152 8,683 1,386,893 1,315,863 Loans outstanding, net after provisions 10,522,411 10,472,177 Intangible assets 2,570 4,670 Tangible assets 34,631 35,663 Other assets Derivatives 1,387,480 1,263,773 Other assets 5,083 4,591 1,392,563 1,268,363 Accrued interest and fees receivable 330, ,041 Total assets 16,666,256 16,907,743 Liabilities Amounts owed to credit institutions Short-term amounts owed to credit institutions 252, ,642 Long-term amounts owed to credit institutions 114, , , ,554 Debts evidenced by certificates Debt securities issued12,822,379 13,176,296 Other debt 264, ,542 13,086,679 13,414,838 Other liabilities Derivatives 1,266,571 1,061,421 Other liabilities 15,066 6,029 1,281,638 1,067,450 Accrued interest and fees payable 281, ,773 Total liabilities 15,016,646 15,188,614 Equity Authorised and subscribed capital 4,000,000 4,000,000 of which callable capital -3,595,740-3,595,740 Paid-in capital 404, ,260 Statutory reserve 644, ,983 Reserve funds 439, ,500 Other value adjustments 9,532 9,154 Profit for the period151, ,232 Total equity 1,649,6101,719,129 Total liabilities and equity 16,666,256 16,907,743 Guarantee commitments 28,572 28,443 The Nordic Investment Bank's accounts are kept in euro. On 31 August 2004, EUR 1.00 = DKK 7.44 / ISK / NOK 8.40 / SEK 9.13 / USD GUIDE TO LISTED FUNDS AND BONDS

50 Core business: banking Profit/loss statement (EUR thousand) Interest income 469, ,709 Interest expense -313, ,793 Net interest income 155, ,916 Commission income and fees received 4,876 6,454 Commission expense and fees paid -1, Net profit on financial operations 14,569 9,464 Foreign exchange losses Operating income 173, ,979 Expenses General administrative expenses 19,753 14,158 Depreciation and write-down in value of tangible and intangible assets 2,600 1,936 Provision for possible loan losses, reversals (-) ,348 Total expenses 22,047 12,747 Profit for the period 151, ,232 ROE 9.5% ROA 0.9% Auditors: Ernst & Young GUIDE TO LISTED FUNDS AND BONDS 49

51 Parex banka COMPANY IN BRIEF Parex banka was founded in 1992 as first Latvian bank with private capital. The Bank's primary business consists of providing corporate and retail banking through its network across the Baltic countries. The Bank's main areas of operation include accepting deposits from customers, granting short-term and long-term loans to local municipalities, corporate customers, private individuals and other credit institutions, issuing and servicing payment cards and credit cards, proprietary trading, dealing with lease finance and foreign exchange transactions. The Bank also offers trust management and investment banking services and performs local and international payments, as well as provides a wide range of other financial services. Parex is well known for its client loyalty and high customer service level. Parex considers the Baltic States of Latvia, Estonia, and Lithuania to be its home market and works to offer universal banking services in these markets. Also, Parex uses its geographical position to be involved in east-west capital and trade flows. As at 31 December 2004 Parex banka was the largest commercial bank in Latvia in terms of assets and capital and reserves. It was the largest bank by deposits and the third largest in terms of lending. Since its foundation, Parex banka has operated with the profit. As at 31 December 2003 the Bank had 103 branches and client service centers in Latvia. The Bank has a subsidiary in Lithuania and a branch in Estonia. The Bank also has 5 representative offices in Frankfurt (Germany), Stockholm (Sweden), Tokyo (Japan), Kiev (Ukraine) and Baku (Azerbaijan) as well as a subsidiary, Parex Group Representation Limited, in London (UK), which operates the Bank s representative office. In February 2004 Parex banka completed the purchase of the Swiss AP Anlage und Privatbank AG thus becoming the first bank among the new EU member states that has started banking operation in Switzerland. SUBSTANTIAL SHAREHOLDERS Valery Kargin 42.89% Viktor Krasovitsky 42.89% The issue of the notes was undertaken by Parex banka as part of the funding diversification program. In addition, it has served as a tool to attract attention of the market participants to such kind of funding of the companies. In future the Bank plans to act as an arranger of similar kind of deals for Baltic-based companies for listing on Riga Stock Exchange. The Bank also plans an issue of eurobonds in the nearest future. 50 GUIDE TO LISTED FUNDS AND BONDS

52 Core business: banking CORPORATE NOTES name PRXB ISIN LV listing date number of notes outstanding 50,000 currency LVL nominal value 100 issue value 5,000,000 maturity date coupon rate 4.25% CONTACT INFORMATION Investor relations contact: Irina Harlampjeva Smilšu iela 3, Rīga LV-1050, Latvija Telephone: Fax: Internet home page: GUIDE TO LISTED FUNDS AND BONDS 51

53 Parex banka FINANCIAL INFORMATION (bank only) Balance sheet (LVL thousand) Assets Cash and balances with the Bank of Latvia 59,017 63,748 Balances due from credit institutions 144, ,259 Loans and advances to customers 445, ,349 Fixed income securities 325, ,122 Shares and other non-fixed income securities 9,793 11,429 Investments in subsidiaries 7,841 18,369 Derivative financial instruments 1,505 1,414 Intangible assets 2,505 3,318 Fixed assets 19,229 19,452 Prepayments and accrued income 5,613 8,006 Other assets 1,667 2,190 Total assets 1,023,415 1,362,656 Liabilities and equity Balances due to credit institutions and central banks 104, ,663 Deposits from customers 800,978 1,058,256 Derrivative financial instruments 3,482 3,322 Accrued expense and deferred income 2,859 3,510 Provision for liabilities and charges Other liabilities 2,972 7,574 Total liabilities 915,258 1,236,282 Minority interest - Shareholders equity Piad-in share capital 63,327 65,027 Share premium 9,226 12,694 Fair value revaluation reserve 4,270 3,867 Retained earnings 31,334 44,786 Total shareholders equity 108, ,374 Total liabilities and equity 1,023,415 1,362,656 Memorandum items Contingent liabilities 12,490 25,888 Financial commitments 99, ,825 Foreign exchange contracts 714, ,745 Other financial instruments 23,549 25,592 Funds under trust management 2, , GUIDE TO LISTED FUNDS AND BONDS

54 Core business: banking Profit/loss statement (LVL thousand) Interest income 43,617 54,096 Interest expense (17,618) (19,153) Net interest income 25,999 34,943 Fees and commission income 20,418 21,612 Fees and commission expense (4,240) (5,098) Net fee and commission income 16,178 16,514 Result from operations with securities and foreign exchange 17,943 12,190 Other operating income 807 1,287 Operating income 60,927 64,934 Administrative expenses (28,870) (33,933) Depreciation and amortization (5,335) (5,841) Other operating expenses (390) (340) Provisions for doubtful debts and off-balance sheet items (11,905) (8,672) Release of previously established provisions Profit from investments in subsidiaries 1,221 1,609 Total operating expenses (62) 375 Profit before tax and minority interest 15,976 18,472 Corporate income tax (2,553) (2,020) Profit before minority interest 13,423 16,452 Minority interest - - Net profit for the year 13,423 16,452 ROAA, return on average assets 1.38% 1.38% ROAE, return on average equity 14.93% 14.03% Auditors: Ernst & Young Baltics GUIDE TO LISTED FUNDS AND BONDS 53

55 Reach for global capital RIGA STOCK EXCHANGE