Yield of AB.LV open-end investment funds grows significantly

August 19, 2009 / Banking

After a great shock in the world financial markets at the end of 2008, financial markets and investors gradually regain optimism.

The first half of 2009 was successful for open-end investment funds managed by Aizkraukles Banka subsidiary AB.LV Asset Management, those funds showing considerable increase of their yield.

According to Leonid Kil, AB.LV Asset Management Chairman of the Board, “It is still too early to say that crisis is over, but applying certain caution, it is possible for investors to earn money”.

Events in financial markets proved bond funds to be one of the safest, allowing invested capital to be preserved even during crisis.

Among all funds managed by AB.LV Asset Management, “AB.LV High Yield CIS Bond Fund” open-end bond fund appeared to have the highest yield this year. As of 31 July this year, its 6-month yield was equal to 58.19%. The fund share price has grown from USD 5.54 at the beginning of the year to USD 9.27 as of 31 July. The fund mainly invests in corporate and financial institutions’ debt securities of CIS states.

Another bond fund, “AB.LV Emerging Markets Bond Fund” also demonstrated high 6-month yield. This fund includes two sub-funds — in USD and in EUR, and as of 31 July, their respective yield was equal to 23.47% and 21.63%. “AB.LV Emerging Markets Bond Fund” invests in state-guaranteed debt securities. Thus investors are given an opportunity to receive rather attractive yield on their investment, investing with relatively moderate risk.

The yield of the third fund managed by AB.LV Asset Management – “AB.LV Global ETF Fund” equity fund — has grown as well. This fund is also offered in two currencies — USD and EUR. The fund respective 6-month yield amounted to 21.71% and 14.50%. Under “AB.LV Global ETF Fund”, investments are made in different markets, mainly using ETFs (exchange-traded funds), which reflect trends in the major stock markets of the selected states.

JSC “Aizkraukles banka” is 100% owned by Latvian shareholders. The bank’s majority shareholders are Oleg Fil — 47.04% shares, Ernest Bernis and Nika Berne — 47.04% shares. The Aizkraukles Banka aim is to become the leading independent private bank in the Eastern Europe, combining all banking services, including asset management and advisory services, in a single customer-tailored offer. Aizkraukles Banka Group includes IPAS AB.LV Asset Management, IBAS AB.LV Capital Markets and other companies.

Additional information:
Ilmars Jargans
Aizkraukles Banka
+ 371 6777 5296