Growing yield of AB.LV open-end investment funds

August 2, 2010, 16:47 / Banking

After considerable price increase in the world financial markets in 2009, there was obvious high volatility on main stock markets in the first half of 2010, caused by nervousness of market players, crisis of state debt obligations of some European countries, and other factors.

Due to cautious strategy and assessment of all risks applied, yield of open-end investment funds managed by Aizkraukles Banka subsidiary AB.LV Asset Management continued to grow in 2010, and value of the funds’ shares exceeded the pre-crisis levels.

“Our view of the market long-term prospects is still positive, but nevertheless we do not rule out the possibility that high volatility and nervousness will stay for some period. It is rather possible in short term that correction or consolidation period will last for a few months, and then there will be another increase in equity markets. Therefore, investment funds, especially at present, are a good option for investors to be used instead of common bank deposits, which offer low interest rates,” said Leonid Kil, AB.LV Asset Management chairman of the board.

This year, yield of open-end bond fund AB.LV High Yield CIS Bond Fund has been the highest one among all funds managed by AB.LV Asset Management. As of 30 June, its 6-month yield reached 6.92%, but 1-year yield was equal to 34.9%. The fund share’s price has grown from 10.85 USD at the beginning of the year to 11.75 USD as of 30 June. The fund mainly invests in debt securities of CIS corporations and financial institutions.

"AB.LV HIGH YIELD CIS BOND FUND" Dynamics of Fund Certificate Value (USD)

The yield of another bond fund, AB.LV Emerging Markets Bond Fund, is also high. There are two subfunds in this fund – in USD and in EUR, and as of 30 June their yield was equal to 4.65% and 3.2% respectively, whereas 1-year yield amounted to 21.1% and 19.89%. AB.LV Emerging Markets Bond Fund invests in government-backed debt securities. Therefore, investors are given an opportunity to obtain rather attractive yield, with risk being relatively moderate.

"AB.LV EMERGING MARKETS USD BOND FUND" Dynamics of Fund Certificate Value (USD)

"AB.LV EMERGING MARKETS EUR BOND FUND" Dynamics of Fund Certificate Value (EUR)

Performance of the third investment fund managed by AB.LV Asset Management – equity fund AB.LV Global ETF Fund – has also been successful. The fund allows investing in USD and EUR as well. The fund’s 1-year yield in those two currencies equalled 17.99% and 23.60% respectively. The fund invests in different markets, mainly using ETFs (exchange traded funds), which reflect trends in major stock markets in chosen countries.

Additional information:

Ilmars Jargans
Head of Public Relations Department
+ 371 6700 2296