Investor CEE FIZ
Investor Central and Eastern Europe FIZ, a closed-end fund, has been in operation since May 2007 (previously known as the Investor Bulgaria and Romania FIZ, prior to March 2009). It was established without a set termination date and has been quoted on the Warsaw Stock Exchange since June 2007.
Net Asset Value |
Profit since May.21 2007 |
||
| PLN | 50 591 657 |
-33% |
|
| EURO* | 12 203 111 |
-39% |
|
| USD* | 14 903 569 |
-44% |
* average NBP exchange rate of 30 June 2010: 1 EURO = 4.1458 PLN; 1 USD = 3.3946 PLN
average NBP exchange rate of 21 May 2007: 1 EURO = 3.7760 PLN; 1 USD = 2.7952 PLN
The Investor CEE FIZ fund offers an opportunity to invest in companies operating in the Central and Eastern European region plus immediately adjacent countries, i.e. Bulgaria, Croatia, the Czech Republic, Greece, Hungary, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Turkey, and Ukraine.
Financial instruments
Shares in publicly listed companies are the mainstay of the fund's portfolio, although the portfolio managers also take advantage of various derivatives, exchange indexes, and currency indexes, using them either to hedge such investments in shares or as supplementary investment vehicles in their own right. The fund may also invest in other financial instruments to supplement the portfolio. The specific composition of the portfolio varies, as the proportions of various types of instruments are adjusted in keeping with the current and anticipated market climate.
Shares represent a regulated segment of the portfolio, expanded during periods of rising share prices but downsized and/or replaced with defensive shares in anticipation of market downturns.
Derivatives may be utilized both as hedging mechanisms and as investments in their own right. When markets are buoyant, they can lend further profitability to the portfolio by serving as a means of leverage (gaining exposure above 100% of asset value). During periods of downward corrections or overall market downturns, derivatives serve as a hedging mechanism, e.g. through short selling of stock market index contracts.
Investment strategy
The selection of shares and other financial instruments to invest in is based upon solid macroeconomic analysis of such factors as economic growth rates, current and forecast levels of market interest rates and inflation, trends regarding the reported profits and share price of exchange-listed companies, and the impact of such factors on the broader economic situation in the countries included in the fund's area of activity.
The portfolio managers single out promising companies for investment by analyzing their fundamentals as well as overall market trends. The fund seeks to identify shares in companies that appear poised to increase in value in the medium or long term, yet remain underappreciated by other investors. This evaluation is significantly based upon analyzing past financial statements and forecast future performance to identify the potential for growth in value of the company or its assets. The elements evaluated by such analysis include the products offered by the given company, its management staff, market position, distribution network, general development prospects, and its possible acquisition or restructuring.
Unlike traditional share-based funds, this fund is not obliged to maintain its investments in shares. This flexibility means that it can downscale the proportion of share investments during periods of market downturn
Geographical diversification
The Investor CEE FIZ fund invests in the shares of companies operating in Bulgaria, Croatia, the Czech Republic, Greece, Hungary, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Turkey, and Ukraine, irrespective of where they are headquartered or listed.
Hedging against currency risk
The fund invests in currency risk hedging contracts, thus limiting the risk of unfavourable changes in the value of the Polish zloty with respect to other currencies in which investments are made.
Portfolio managers
The portfolio managers are excellently qualified, as confirmed by many years of experience and outstanding fund management performance. Most of the managers of the Investor CEE FIZ fund are simultaneously co-owners of Investors TFI (the fund management company). The fees of the fund management company depend upon the fund's good performance, and the fund management company itself also participates in the fund - both of these facts bear excellent testimony to the long-term investment strategy.
