March return of Balkan Emerging Frontiers (BEF) Fund is roughly
estimated at around + 0.70%.
We are writing this newsletter, as we have recently received
some questions regarding returns of certain other investment funds.
BEF Fund is investment product mainly for investors with medium
term expectations, and not for those making their investment decisions
based mainly on monthly or even daily returns. Each investment
fund has its own best and worst periods, depending on comparison
periods and of course on its investment strategy.
Investment strategy of BEF Fund focuses on region of Western Balkans.
Despite the fact that in recent years the region has been unfortunately
forgotten, unpopular and neglected, BEF Fund realized positive net
returns for its investors every year. We are now operating for already
the sixth calendar year, further demonstrating BEF Fund long-term
investment objectives. Every investment fund has its better and worse
return periods and none is the best from all short terms perspective.
Nevertheless, in last 56 months (from its start of investing) BEF Fund
achieved substantially better return than other funds investing in
the region. Attached comparison presents this very clearly.
Time for best returns is yet to come. We believe that beginning
of major growth of Balkan markets is in front of us.
Low and lagging regional stock indices and thus undervaluation
of stocks is obvious and huge (you can review comparison in the
attached file)! When these indices increase from 15% to half of
their 2007 values this will represent growth of 233%. Rise of
indices to their former peak values will represent 566% growth!
As past experience show, it will soon be too late to catch this train.
Due to low liquidity, regional markets will grow by more than 100%
before most investors will take note of it, and probably even more
before they can react. Example: Recent growth of certain Slovenian
stock shares, even if the majority of population is not aware of it,
as they are “blinded” by daily media reporting on “crisis”. The longer
the duration of market stagnation, the stronger the growth when it occurs.
History of stock exchanges clearly shows with numerous examples
– the longer the market is depressed, the stronger it than grows when the tide turns.
Time for investing is quickly running out! When Balkan will be once
again on newspapers’ headlines, it will be too late! Until then,
we will already made you excellent profits!
Balkan Emerging Frontiers Fund
Telephone/fax: +41 22 518 02 39
The Fund is a Segregated Portfolio of JP SPC 5, a segregated
portfolio company with limited liability.
This document is intended for institutional investors or high
net worth individuals. If you do not fall into those categories
please disregard and delete it. Portions of this document may
contain information about funds and services, which may be
restricted by law in certain jurisdictions. Any information
in this document is not an invitation to invest in the funds,
nor does it constitute an offer for sale of shares in the funds
or any investment whatsoever. Further information is only available
to pre-qualified, qualified or accredited investors. Subscriptions
for any class of shares in the funds can only be made by completing
the subscription agreement for the relevant shares and after
having been provided the offering documents as described in
the subscription agreement.
Each prospective investor should consult his/her/its own legal
counsel, accountant or other professional advisor for advice
concerning the various legal, tax and economic considerations
relating to the fund and offshore investment generally. Neither
the fund nor any promoter can give any guarantee that tax relief
or other tax benefits will be available, or that the current tax
treatment of the fund will remain unchanged in the future in the
jurisdiction where the prospective investor is a resident or
of which he/she/it is a citizen.
This information is being issued or presented by the Investment
Manager for information purposes only and no representation is
being made by the Fund or any agent of any affiliate of the
promoter as to the accuracy or completeness of the information
contained in this document. Although information in this document
is provided in good faith no investment decision should be based
on it as it is not verified. Past performance is no guarantee
of future results. There is significant risk involved with equity trading.