Banks, EU – Baltic States, Financial Services, Funds, Investments

Citadele Asset Senior Manager Andris Kotāns: „The Fund invests in debt and equity securities of Eastern European issuers. In the period from July 1, 2009 to June 30, 2010, the Fund has performed very well, and we congratulate the Fund’s faithful investors with it! This growth was primarily driven by the strong performance of the hard currency debt markets of Eastern Europe during this period, which at the start of the period formed 85% of the Fund’s assets. Following the late 2008/early 2009 panic and liquidity squeeze, these debt markets offered amazing opportunities with bonds of fundamentally strong issuers offering yields in double digits. Subsequently the market reacted very positively to the generally strong economic durabilty of the region, with strong liquidity boost provided by global monetary policy stimuli of the world’s leading central banks. As the eurobond market rallied and the amount of obviously undervalued debt instruments decreased, the weight of equities in the Fund was increased closer to 20% due to better forward-looking risk/return balance. Further increase of the equity weighting is expected in the coming months, yet the region’s eurobonds are still expected to form the backbone of the Fund for the foreseeable future.

Business New Europe has awarded Citadele Eastern European Balanced Fund as the Best Balanced Fund also in 2008.

Detailed information: http://businessneweurope.eu