July 8, 2005
Trigon Funds: New Europe stock markets rallied in June
In June the Central and Eastern European markets followed global equities higher, almost reaching the record levels of the year. Regional currencies strengthened as funds flew into the regional bond markets in reaction to decline in long yields in developed markets. The planned acquisition of German HVB by Italian Unicredito and its consequences for the banking sector in the CEE region continued to lift financials while the surge in oil prices lifted the valuations of energy companies.
The NAV of the unit of Trigon Central and Eastern European Fund increased by 6.9%, Trigon Second Wave Fund by 4.8% and Trigon New Europe Small Cap Fund by 1% in June. Year-to-date the funds have returned 14.3%, 14.6% and 1.1% respectively.
We continue to believe that two markets in the New Europe region - Croatia and Poland - are attractively valued and we are therefore overweight in these countries. The best risk/return relationship can today be found among Polish small and mid cap companies. We recommend investors with medium risk targets to invest 65% of the assets to Trigon CEE Fund, 15% to Trigon Second Wave Fund and 20% to Trigon New Europe Small Cap Fund. Investors with high risk appetite could hold 50:20:30 proportions in their portfolios. Further information on our funds is available at www.trigoncapital.com
For further information
Director, Head of Asset Management
Pärnu Road 15
Tel. +372 6679208
Fax. +372 6679201
Mob. +372 5112242
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