BALTI KASVUFOND

ANNOUNCEMENT

15.09.1999

 

 

COMMENTARY TO THE H1 FINANCIAL RESULTS

 

As of 30.06.99, the net asset value of Balti Kasvufond 

stood at 18.4 million EEK, number of fund units issued 

was 140 410 and unit net value amounted to 131.26 EEK. 

 

During H1 1999 the fund's net asset value increased by 

3.1 million EEK, of which 0.6 million EEK was due to 

increase in the number of fund units by 4,198; total number 

of fund units sold to clients in H1 was 20,542 (for 

2.7 million EEK) and number of units repurchased was 16,344 

(for 2.1 million EEK). The remaining 2.5 million EEK increase 

proceeded from net profit posted in H1. 

As of 31.12.98 the fund unit net value amounted to 112.15 EEK. 

Hence the fund unit net value increased in H1 1999 by 19.11 EEK 

or 17%, providing annual return of 34%.

 

Among the regional equity markets indices only TALSE rose in 

H1 1999 by 20.8%, whereas the Latvian RICI dropped by -11.2% 

and Lithuanian LITIN-A by -8.9%. The satisfactory results of 

Balti Kasvufond were mainly due to relatively low importance 

of investments in Latvian an Lithuanian equities markets and 

well-balanced proportion between shares and debt instruments. 

At the end of the period, the fund's investments in Latvian 

equities accounted for only 3.29% and in Lithuanian equities 

4.41%. Total volume of investments in shares accounted for 

34.0% of the fund's NAV. 

 

Balti Kasvufond will continue to follow its current investment 

principles also in H2, i.e. the portfolio will include shares 

and interest-bearing instruments. On investment in shares, the 

shares of developing undertakings with clear ownership and 

management structures are preferred; among interest-bearing 

instruments, freely transferable debt securities in EEK are 

preferred. 

 

 

Mihkel Õim

Fund Manager