Danske Invest Russia Small Cap Fund G Emerging market equity funds
Da nske Invest Russia Small Cap Fund G Emerg ing market equit y funds
Risk class
Investment policy Fund
Low risk
High risk
Fund facts Value 31-03-2011 (EUR) 1.42427 ISIN FI0008002340 Distribution of income No Benchmark index Benchmark (Russia Small Cap) Web site www.danskeinvest.fi Launch 08-11-2005 Total assets , million (EUR) 28.86 Base currency EUR Minimum subscription 500 EUR or 30 EUR/month
Subscription fee Redemption fee Management fee
1,00 % / 8 EUR 2,00 % / 8 EUR 3.00 %
Danske Invest Russia Small Cap is intended for investors who are looking for an investment solution on the Russian emerging equity market that is profitable, professionally managed and well-diversified. The fund is well-suited, for long-term investment, to experienced investors who can accept even substantial changes in the value of the fund from time to time. Due to its higher risk level than that of a normal mutual fund, the fund is recommended only as a small part of a diversified investment portfolio. The recommended investment horizon in the fund is more than five years. The assets of Danske Invest Russia Small Cap are invested in a diversified manner mainly in publicly traded equities whose issuer is a Russian company or a company operating in or listed in Russia, or a company that is highly dependent on the Russian economy, and that is small or medium-sized in terms of market value. The fund may invest not only in well-established companies, but also in new IPOs. The general performance of the Russian emerging equity market is reflected in the value of the fund.
Performance 31-03-2011
Benchmark index Unofficial RTS-2 Index
Portfolio manager Danske Capital, Sampo Bank plc and Danske Capital, Danske Bank A/S
Major investments 31-03-2011 Issuer
Key f igures - 1 y 31-03-2011 Volatility (%) Sharpe Tracking error IR Alpha Beta Duration
22.727 1.225 10.061 -1.994 -9.247 0.958 -
Magnit OJSC Spon GDR REGS Holding MRSK - BRD (USD) Bashneft-Pfd-Cls (USD) IBS Group Holding Ltd. RGS GDR (DE) CTC Media, Inc. Polymetal - GDR REG S OGK 4 OJSC Territorial Generation Company No. 1 Armada (USD) Rosinter Restaurants Holding (Usd) Other
%
6.19 % 5.98 % 5.66 % 4.02 % 2.88 % 2.75 % 2.72 % 2.54 % 2.43 % 2.25 % 62.58 %
Performance 31-03-2011 YTD 1 month 3 month 6 month 12 month 36 month Fund -1.70 -1.96 -1.70 16.87 10.97 -12.16 Benchmark index -0.45 -0.98 -0.45 16.37 21.02 6.76
Start 6.78 14.84
This Fund Review is not an invitation to subscribe or redeem Fund units. Even though the aim has been to give reliable information, Sampo Bank and Sampo Fund Management Ltd guarantees neither the completeness nor correctness of the information contained in this Fund review nor shall be held liable for any errors or omissions in the information contained therein. Past mutual fund performance is no guarantee of future returns. The return and interest expectations used in the review are not intended to be perceived as promises of future returns or interest. Investment always involves fluctuation in value the value of an investment may either rise or fall and customers are therefore at risk of losing assets invested in a mutual fund. There is no guarantee of actual returns or that the performance of the investment will be in accordance with the expected returns or always positive. Before making an investment decision, customers should always familiarise themselves with the characteristics, expenses and risks of the mutual funds which are outlined in the simplified prospectuses, fund regulations and price list of mutual funds, for example. Funds simplified prospectus and regulations can be found from www.danskeinvest.fi
Da nske Invest Russia Small Cap Fund G Emerg ing market equit y funds
Sector allocation/asset allocation nEnergy 21.94% nMaterials 12.53% nConsumer discretionary 11.74% nInformation technology 11.46% nConsumer staples 9.72% nIndustrials 8.73% nUtilities 6.39% nOther 17.49%
Holding type nStock market 93.23% nOther 6.77%
Portfolio manager review Market sentiment was mixed in March while Russian blue chip stocks stayed supported as oil price remained at 116-117 USD/bbl on the back of unrest in the Middle East. Trouble in Libya and Japan once again highlighted Russias importance as energy supplier. MSCI Russia gained 6.3%, RTS 3,8% and RTS-2 1,4% in usd terms. MSCI EM index gained 5.2%. The best-performing large- and mid cap stocks in March were Bashneft pref. +19%, Sistema +16% and MTS +14%. The biggest losers were Raspadskaya -15%, Bank St Petersburg -14% and PIK Group -13%. Inflows into Russia funds in March at country level totaled 1.1 bn$. Amid high oil prices Russian budget deficit is estimated now just at 1% with sovereign re-ratings being possible. Russian political drama intensified in March. Putin has publicly criticized the campaign in Lybia as an example of western powers interfering in local politics. President Medvedev criticized Putin for interfering into Russias external affairs which has been presidential responsibility sphere. President also slammed new social tax which put more burden on business and key politicians were asked to abstain from taking seats on the BODs of key Russian state owned enterprises. President also asked the main state-controlled companies to decrease their materials’ costs by 10% under threat of top management change. All these moves, if executed and finalized, would be positive for
equity markets. Russia Small Cap fund returned -2% in March vs RTS-2 index -1,3% in euro terms. The fund stayed overweight in domestic consumer and retail names which remained under pressure while blue chip names continued to be bought. We believe this trend will start turning soon as domestic growth names have been under selling pressure already for some months in a row. During the month we increased our positions in Ukrainian helicopter motors producer Motor Sich, Russian leading IT company benefiting from state orders Armada and added a new position in Ukrainian eggs producer Avangard. We reduced positions in regional telecommunications companies ahead of their merger into one Rostelecom share and closed period for trading in April. (07.04.2011)
Return
Return and dividends for individual years
2006
2007
2008
2009
2010
Fund Benchmark index
25.10 53.99
30.59 28.13
-74.15 -78.06
110.85 152.78
51.23 68.66
This Fund Review is not an invitation to subscribe or redeem Fund units. Even though the aim has been to give reliable information, Sampo Bank and Sampo Fund Management Ltd guarantees neither the completeness nor correctness of the information contained in this Fund review nor shall be held liable for any errors or omissions in the information contained therein. Past mutual fund performance is no guarantee of future returns. The return and interest expectations used in the review are not intended to be perceived as promises of future returns or interest. Investment always involves fluctuation in value the value of an investment may either rise or fall and customers are therefore at risk of losing assets invested in a mutual fund. There is no guarantee of actual returns or that the performance of the investment will be in accordance with the expected returns or always positive. Before making an investment decision, customers should always familiarise themselves with the characteristics, expenses and risks of the mutual funds which are outlined in the simplified prospectuses, fund regulations and price list of mutual funds, for example. Funds
Risk class
Investment policy Fund
Low risk
High risk
Fund facts Value 31-03-2011 (EUR) 1.42427 ISIN FI0008002340 Distribution of income No Benchmark index Benchmark (Russia Small Cap) Web site www.danskeinvest.fi Launch 08-11-2005 Total assets , million (EUR) 28.86 Base currency EUR Minimum subscription 500 EUR or 30 EUR/month
Subscription fee Redemption fee Management fee
1,00 % / 8 EUR 2,00 % / 8 EUR 3.00 %
Danske Invest Russia Small Cap is intended for investors who are looking for an investment solution on the Russian emerging equity market that is profitable, professionally managed and well-diversified. The fund is well-suited, for long-term investment, to experienced investors who can accept even substantial changes in the value of the fund from time to time. Due to its higher risk level than that of a normal mutual fund, the fund is recommended only as a small part of a diversified investment portfolio. The recommended investment horizon in the fund is more than five years. The assets of Danske Invest Russia Small Cap are invested in a diversified manner mainly in publicly traded equities whose issuer is a Russian company or a company operating in or listed in Russia, or a company that is highly dependent on the Russian economy, and that is small or medium-sized in terms of market value. The fund may invest not only in well-established companies, but also in new IPOs. The general performance of the Russian emerging equity market is reflected in the value of the fund.
Performance 31-03-2011
Benchmark index Unofficial RTS-2 Index
Portfolio manager Danske Capital, Sampo Bank plc and Danske Capital, Danske Bank A/S
Major investments 31-03-2011 Issuer
Key f igures - 1 y 31-03-2011 Volatility (%) Sharpe Tracking error IR Alpha Beta Duration
22.727 1.225 10.061 -1.994 -9.247 0.958 -
Magnit OJSC Spon GDR REGS Holding MRSK - BRD (USD) Bashneft-Pfd-Cls (USD) IBS Group Holding Ltd. RGS GDR (DE) CTC Media, Inc. Polymetal - GDR REG S OGK 4 OJSC Territorial Generation Company No. 1 Armada (USD) Rosinter Restaurants Holding (Usd) Other
%
6.19 % 5.98 % 5.66 % 4.02 % 2.88 % 2.75 % 2.72 % 2.54 % 2.43 % 2.25 % 62.58 %
Performance 31-03-2011 YTD 1 month 3 month 6 month 12 month 36 month Fund -1.70 -1.96 -1.70 16.87 10.97 -12.16 Benchmark index -0.45 -0.98 -0.45 16.37 21.02 6.76
Start 6.78 14.84
This Fund Review is not an invitation to subscribe or redeem Fund units. Even though the aim has been to give reliable information, Sampo Bank and Sampo Fund Management Ltd guarantees neither the completeness nor correctness of the information contained in this Fund review nor shall be held liable for any errors or omissions in the information contained therein. Past mutual fund performance is no guarantee of future returns. The return and interest expectations used in the review are not intended to be perceived as promises of future returns or interest. Investment always involves fluctuation in value the value of an investment may either rise or fall and customers are therefore at risk of losing assets invested in a mutual fund. There is no guarantee of actual returns or that the performance of the investment will be in accordance with the expected returns or always positive. Before making an investment decision, customers should always familiarise themselves with the characteristics, expenses and risks of the mutual funds which are outlined in the simplified prospectuses, fund regulations and price list of mutual funds, for example. Funds simplified prospectus and regulations can be found from www.danskeinvest.fi
Da nske Invest Russia Small Cap Fund G Emerg ing market equit y funds
Sector allocation/asset allocation nEnergy 21.94% nMaterials 12.53% nConsumer discretionary 11.74% nInformation technology 11.46% nConsumer staples 9.72% nIndustrials 8.73% nUtilities 6.39% nOther 17.49%
Holding type nStock market 93.23% nOther 6.77%
Portfolio manager review Market sentiment was mixed in March while Russian blue chip stocks stayed supported as oil price remained at 116-117 USD/bbl on the back of unrest in the Middle East. Trouble in Libya and Japan once again highlighted Russias importance as energy supplier. MSCI Russia gained 6.3%, RTS 3,8% and RTS-2 1,4% in usd terms. MSCI EM index gained 5.2%. The best-performing large- and mid cap stocks in March were Bashneft pref. +19%, Sistema +16% and MTS +14%. The biggest losers were Raspadskaya -15%, Bank St Petersburg -14% and PIK Group -13%. Inflows into Russia funds in March at country level totaled 1.1 bn$. Amid high oil prices Russian budget deficit is estimated now just at 1% with sovereign re-ratings being possible. Russian political drama intensified in March. Putin has publicly criticized the campaign in Lybia as an example of western powers interfering in local politics. President Medvedev criticized Putin for interfering into Russias external affairs which has been presidential responsibility sphere. President also slammed new social tax which put more burden on business and key politicians were asked to abstain from taking seats on the BODs of key Russian state owned enterprises. President also asked the main state-controlled companies to decrease their materials’ costs by 10% under threat of top management change. All these moves, if executed and finalized, would be positive for
equity markets. Russia Small Cap fund returned -2% in March vs RTS-2 index -1,3% in euro terms. The fund stayed overweight in domestic consumer and retail names which remained under pressure while blue chip names continued to be bought. We believe this trend will start turning soon as domestic growth names have been under selling pressure already for some months in a row. During the month we increased our positions in Ukrainian helicopter motors producer Motor Sich, Russian leading IT company benefiting from state orders Armada and added a new position in Ukrainian eggs producer Avangard. We reduced positions in regional telecommunications companies ahead of their merger into one Rostelecom share and closed period for trading in April. (07.04.2011)
Return
Return and dividends for individual years
2006
2007
2008
2009
2010
Fund Benchmark index
25.10 53.99
30.59 28.13
-74.15 -78.06
110.85 152.78
51.23 68.66
This Fund Review is not an invitation to subscribe or redeem Fund units. Even though the aim has been to give reliable information, Sampo Bank and Sampo Fund Management Ltd guarantees neither the completeness nor correctness of the information contained in this Fund review nor shall be held liable for any errors or omissions in the information contained therein. Past mutual fund performance is no guarantee of future returns. The return and interest expectations used in the review are not intended to be perceived as promises of future returns or interest. Investment always involves fluctuation in value the value of an investment may either rise or fall and customers are therefore at risk of losing assets invested in a mutual fund. There is no guarantee of actual returns or that the performance of the investment will be in accordance with the expected returns or always positive. Before making an investment decision, customers should always familiarise themselves with the characteristics, expenses and risks of the mutual funds which are outlined in the simplified prospectuses, fund regulations and price list of mutual funds, for example. Funds
