Advance IPO Fund
09.09.2010
| Basic Facts | |
|---|---|
| Fund type: | Open-End Equity Fund |
| Investment focus: | IPOs in Central & Eastern European Companies |
| Country of Residence: | Bulgaria |
| ISIN: | BG9000023077 |
| Bloomberg Code: | ADVIPOF:BU |
| Currency: | EURO |
| Subscription Fee: |
|
| Redemption Fee: | none |
| Management Fee: | 2.5% of NAV p.a. |
| Launch Date: | 23.11.2007 |
| Minimum Investment: | 1 share (with EUR 1 par) |
| Asset Manager: | Karoll Capital Management |
| Portfolio Manager: | Nadia Nedelcheva, CFA |
Fund Highlights
Advance IPO Fund is an open-end mutual fund whose underlying investment strategy is to invest in newly-listed companies from Central and Eastern Europe.
Investment Strategy
The selected strategy is based on the following assumptions:
- The management company believes that due to the stage of their development the countries from Central and Eastern Europe have sound long-term growth potential with macroeconomic environment and legal framework constantly improving
- The CEE capital markets are in their early stage of development and the practice of raising funds through the stock exchange is yet to gain ground. The increasing level of investment culture in these countries, the rapidly rising assets under management by institutional investors with the establishment of mutual funds and the implementation of pension reforms all lead to solid demand for stocks. Due to the short history of CEE capital markets, the way they were established and the enforced listing of companies in some of them there is significant disbalance between supply and demand which on its side provokes sound interest towards newly-listed companies. That suggests considerable chances for high returns from investments in initial public offerings.
In the beginning the fund intends to invest in IPOs in Bulgaria, Romania, Croatia, Serbia, Bosnia and Herzigovina, Russia, Ukraine, Poland, the Czech Republic, Slovakia, Slovenia, Hungary, Lithuania, Latvia, Estonia, Turkey, Greece, Kazakhstan and in the future in other countries from Central and Eastern Europe – Macedonia, Montenegro, former Soviet Union republics.
The fund may also invest in private companies that plan to go public in the future (pre-IPO deals).
The fund’s strategy is to follow an aggressive investment approach with short-term holding period. The investment focus is on IPO deals including the following: initial public offering of securities with the purpose of raising funds through the stock exchange, listing of companies under the conditions of secondary public offering of securities with sale of part of the existing capital, stock exchange privatization deals. The fund may also invest in the stocks of companies that have conducted an IPO not later than a year ago as of the moment of investment. The exit will follow a disciplined approach and the objective is that the maximum period between listing on the respective stock exchange and final sale of the stock is 1 year.
The fund invests only in stocks and therefore it is suitable only for investors who are ready to assume moderate to high level of risk.
Risk Statement
The value of units of Advance IPO Fund and the income from them can go down as well as up, profits are not guaranteed, and investors assume the risk that they may not recover the full amount of their investment. Investments in the mutual fund are not guaranteed by a state guarantee fund or any other institution. Past performance of the fund should not be viewed as a guide to future performance.