Bestinvest says
The fund manager Elena Shaftan speaks Russian and has deep knowledge and good understanding of Eastern European markets and companies she invests in. The fund has traditionally maintained a very large Russian exposure, although the manager is prepared to have a significant underweight position in that market when appropriate. The stock selection process emphasises companies with proven business models, healthy and sustainable financial status and dedicated management, that are likely to outperform the market throughout the business cycle.
This fund aims to achieve long-term capital growth by investing primarily in companies which operate or reside in Central or Eastern Europe including Russia, the Baltic States, former USSR states and Turkey. In extreme situations the manager may take positions in emerging Europe debt to mitigate capital losses.
The stock selection process emphasises companies with proven business models, healthy and sustainable financial status and dedicated management, that are likely to outperform the market throughout the business cycle. The manager does not usually invest in IPOs. Portfolio construction also incorporates a macro economic and sector view.
Approximately 60-70% of the fund is built around longer term core holdings with the balance used to trade positions. The liquidity of stocks tends to be a major consideration in the stock selection process.