Nevsky reporting until 31 December 2014

If you are an investor with Nevsky Capital then it is perfectly natural that you should wish to understand the nature of the fund, in order to define reportable income. This is a core piece of information that is made available in a public manner, helping to keep you on top of the requirements that come your way.

If we look at the specifics here, then we begin with the Sterling Class Shares, which have an ISIN of IE00B400QV09 and a HMRC Reference of N0026-0002. As the same suggests, these shares have a currency of GBP and the declaration to 31 December 2014 shows a per unit excess reportable income over distributions in respect of the reporting period of 0.0000. All per-share figures are reported, as can be seen, to four decimal places, using the relevant currency.

The fund distribution date is recorded as 30 June 2015, while the fund is marked as remaining a reporting fund at the date when this distribution is made. The fund does not, however, meet the definition of a bond fund at the date when this report is made available.

How does this compare with other funds within the Nevsky Capital umbrella? First, let’s turn our attention here to the Euro Class Share, with an ISIN of IE00B3W1G920. Make a note of the unique HMRC Reference, which is showing as N0026-0003. The currency of this share class is Euros (EUR), while that excess reportable income is shown as 0.000 here too. You need to be aware that this fund is also a reporting fund at the date when the distribution is made, but that it does not meet the definition of a bond fund. The distribution date is declared as 30 June 2015.

Finally, we take a closer look at the US Dollar Class Shares, which have an ISIN of IE00B42ZNM31. The HMRC Reference that you’ll need here is N0026-0001, with the currency of the Class Share obviously being US dollars (USD).

Once again, the excess reportable income is recorded as 0.0000 and the distribution date is 30 June 2015.

The senior managers at Nevsky Capital, including Nick Barnes, are well known to many within the industry and beyond.

Martin Taylor - Nevsky Capital

Judging Emerging Markets When Making Investments

It finally appears that one of the most challenging and protracted recessions in modern times is coming to a close. Thus, there are many individuals who may be considering a rather serious foray into the investment market. While it is indeed true that there is a good amount of money to be made in such a way, there are a few factors that should be carefully considered before any such venture.

A Look at Emerging Markets

First of all, it is important to understand the term “emerging market”. It can be used in two different ways. Some consider that as we are exiting a recession, we are currently in an “emerging” market. Although this is true, an emerging market is more commonly referred to as a niche sector that is undergoing or is expected to undergo a substantial amount of growth. Obviously, placing oneself in an entry-level position in this situation can lead to a good deal of profit.

Martin Taylor presenting

Martin Taylor presenting

The Commodity Question

Many individuals have touted the commodity market as being one of the most reliable and stable forms of medium- to long-term investment. In fact, this is quite true. Historically speaking, the prices of precious materials, oil and minerals tend to rise. So, many first-time investors will choose to diversify a portion of their portfolio into this sector, for it can help secure growth over time.

However, keep in mind that what goes up will come down (an example of this can be seen in the massive drop in the price of silver by the ounce in recent years). Even commodity markets will suffer their fair share of falls; particularly if the manufacturing industries or the physical demand slows. Keeping a close eye on any emerging technologies and understanding the raw materials that they may require is an excellent way to become involved in a commodity and turn a handsome profit.

A photo of Nick Barnes

Nick Barnes of Nevsky, at a conference

Forex Trading

If commodity trading can be considered a long-term investment strategy, Forex (or currency) investments are on the other end of the spectrum. In essence, a Forex trader will closely follow trends in the prices of currencies around the world. Should a gap between two different types of currency exist, one or both may be purchased under the premise that subsequent changes in price will accrue a profit.

Also, a Forex position can be used to capitalise on an emerging market such as shale oil (as this commodity is listed in dollars, any major announcement may cause the dollar to quickly strengthen). This market operates twenty-four hours every day and is considered to be by far the most liquid available. As a whole, investors will generally not place a great deal of money into the Forex sector; they will rather use a small position to possibly obtain a reasonably high turnaround.

Still, the short-term nature of this strategy will involve a much higher degree of risk. This is the reason why any such position should be established only after careful study or under the guidance of a professional.

These are but a few examples of how emerging area can be judged in different sectors of the marketplace. Naturally, all risk can never be eliminated with any investment strategy. It is nonetheless possible to experience success should these opportunities be approached with prudence and foresight.

Eastern European Fund performance in June

Now feels like a good time to look back on the performance record of the Eastern European Fund back in June. This Nevsky Capital fund had a launch price of $10 back on 13 October 2000.

During the course of June, there was an overall fall in value of 1.4% and some of this figure can certainly be attributed to the relatively poor performance of markets in Turkey during this period. Indeed, Turkish investments saw a loss of 3.9%.

This is a situation where wider influences are undoubtedly having something of an impact. Public unrest looks to have unsettled the markets and the Fund managers at Nevsky will clearly be required to monitor that situation carefully.

An enormous amount will rely on the reaction of Turkey’s government. A situation that could have been controlled has clearly demonstrated what can happen when things get out of hand. That’s something that can have an impact on the Fund, given that there’s an exposure of around 16%.

Better news came from Hungary, with a rise of some 4.7% during the month. This may be seen, to a certain extent, as defying expectations. There appears to be a general weakness in the Hungarian economy that won’t be solved until there are improvements in the situation facing western European economies. That’s reflected in the relatively small holdings at this point in time.

Indeed, Hungary represents only 1.7% of the Fund. The largest holding remains Russia, with more than 50% of total investments. The Financials and Energy sectors represent the markets with greatest levels of exposure.

Meeting the team

With any Fund, there’s a certain level of interest in examining how the situation is developing over time. How are decisions being made and how frequently are those decisions having positive results?

Nevsky Capital's Nick Barnes

Nick Barnes and Martin Taylor provide leadership, directing operations.

Martin Taylor

The decision making process obviously needs to be controlled and analytical. With a suitable knowledge base, it’s possible to make the right decisions. Given the investment strategy that’s being pursued, this means having a thorough understanding of the political situation in central and Eastern Europe, as well as being briefed on changes within companies and markets.