November 21, 2006
Evli Bank launches a new kind of fund investing in the CIS-countries
Evli will launch a new equity fund called Evli New Republics by the end of 2006. The fund will invest mainly in the emerging markets of Kazakhstan and the Ukraine, but will also look for opportunities in the rest of the CIS countries, excluding Russia.
Te objective of the fund is to offer investors the possibility to take part in the growth and development of the CIS-countries. Countries that have sophisticated economies and capital markets and offer liquid investment markets are emphasized as investment targets. The fund will thus in the beginning focus investments on Kazakhstan and the Ukraine, where the political stability and transparency are better than in the other CIS-countries.
The fund is suitable for experienced, long-span investors who look for higher investment returns and tolerate a higher risk. The fund aims at reducing risks by geographic and industry diversification. The funds industry allocation will emphasize especially metals and mining as well as oil and gas. The recommended investment horizon is at least five years.
We strongly believe in the vast potential of this region and trust our experienced investment team who has a great track record with Evli Greater Russia and Evli Baltic funds, says Veikko Maripuu, Head of Suprema Asset Management.
The fund will be managed by the Eastern-European investment team of Evli Banks subsidiary Suprema Securities. Kazakhstan and Ukraine are both countries with vast unused natural resource reserves including for example oil, gas, gold and iron. Kazakhstan has been growing by 10% in average annually since 2000 due to exports and reforms undertaken. The Ukraine is attractive for investors due to potential accession to the WTO and the EU. Export growth and revival in industrial output resulted in 5% GDP growth in the firsthalf of 2006.
For further information
Janne Lassila, Director, Evli Bank Plc, tel. +358 9 4766 9142
Andrei Zaborski, Fund Manager, Suprema Securities AS, tel. +372 640 5726
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