AB.LV subsidiary company IPAS AB.LV Asset Management ended 2009 with great results

February 16, 2010 / Banking

Last year was very successful for investors in the world financial markets. In 2009, major markets finally managed to recover after a heavy strike of the world largest financial crisis experienced in 2007–2008.

In 2009, prices in global bond market almost got back to pre-crisis levels, and stock prices managed to recover most of the losses suffered in 2008. Consequently, majority of equity and bond funds achieved significant growth. However, according to J.P.Morgan data, about 25% of fund managers worldwide lost 5% and more to their reference indexes. Not all fund managers believed that price increase, which began in spring 2009, would be sustainable.

As far as investment management joint stock company (IPAS) AB.LV Asset Management fund managers are concerned, they outperformed almost all their respective reference indexes significantly (see the table). Annual yield of AB.LV High Yield CIS Bond Fund (+96.6%) turned out to be the highest among bond and balanced funds registered on the Riga Stock Exchange.

Performance of AB.LV Asset Management funds in 2009

AB.LV Emerging Markets Bond Fund yield

AB.LV Global ETF Fund yield

AB.LV High Yield CIS Bond Fund yield












Respective fund reference indexes

EMBIG Diversified

EURO EMBIG Diversified

Morgan Stanley All Country World Index

Russia Corporate Bond Index






Surpassing reference indexes has been achieved by employing active fund management.

In 2010, AB.LV Asset Management fund managers plan fund yield to be more moderate due to expected less significant price movements in the markets. Currently, leading analysts mainly expect global stock market to grow by 10-20% as of the end of 2010. Consequently, annual yield of AB.LV Global ETF Fund in dollars and euro is planned to be about 15-25%.

As regards global bond market, in 2010 prices in its major sectors are expected to settle at the achieved level. Implementing active bond fund management, it is planned to achieve annual yield of 8-12%, which is significantly above current deposit interest rates.

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.
Jānis Bunte
AS "Aizkraukles banka"
PR Specialist
Phone: +371 6777 5432
E-mail: janis.bunte@ab.lv