“Interesting note yesterday about Eastern Europe and Turkey. I am interested in investing in the Baltic countries and Poland. The Emerging Europe Investment Trust which I have held in the past has not been doing too well of late. I wonder if you or the Collective have any suggestions.”
Eoin Treacy's view Thank you for this question which
may also be of interest to other subscribers. Since all three of the Baltic
markets are reasonably small, they tend to be overshadowed within East European
focused funds by some of their larger neighbours, not least Russia. Following
a search of Bloomberg I found three funds that you may wish to do some further
due diligence on.
Danske Invest Baltic Growth Fund is listed in Finland and focuses on export oriented companies in Lithuania (44.8%) and Estonia (38.8%). It has a front end load of 1%, back end load of 2% and a management fee of 2.4%. The fund has held a progression of higher reaction lows since 2011.
KJK Baltic States is a SICAV listed in Luxembourg, denominated in Euro and invests primarily in equities listed in Estonia, Latvia and Lithuania. It is priced monthly, has a management fee of 2% and performance fee of 17.5%. The fund has been trending higher since 2011.
East Capital Baltic Fund is listed in Sweden and invests in Estonia, Latvia and Lithuania. It has a front end load of 2.5% and similar management fee. The fund found support in the region of the 200-day MA two weeks ago and a sustained move below that level would be required to question the consistency of the medium-term advance.