Nevsky Capital – Eastern European Fund – February 2013

We take a look back at the performance of the Nevsky Capital Eastern European Fund during the course of February 2013. Regular updates of this nature are also available via the official Nevsky Capital website (https://www.nevskycapital.com) and are distributed via a variety of financial publications – both online and offline.

Overview

During February 2013, emerging markets were seen to under-perform global market. This particular region suffered more than most, partly due to the continuing uncertainty surrounding the Euro and oil prices, both of which slipped during the course of the month.

As a result of these conditions, the Fund fell by 3.2% over the month. This still reflects an over-performance of 0.5%, when compared to the peer-group average.

Individual markets

Given the spread of associated investments, the headline figures only tell part of the story. Of the markets that are represented, Turkey saw the best overall performance. When measured in US$ terms, there was a decrease in value of 1.6%.

When examining why Turkey performed more strongly than other markets, a number of factors can be identified:

  • There was a relative improvement in trade data.
  • There were continued portfolio inflows.
  • There were advantages as a result of the declining oil price.

The Fund may be seen as being slightly under-weight within Turkey, but investments in telecommunications and the financial sector have paid results here.

Russia was seen to under-perform, although individual stock picks once again brought benefits. In particular, telecoms holdings offered opportunities within the Russian market.

Financial facts

At present, cash stands at 5%. The total value of the fund is $598.6 million and the annualised rate of growth is 19.3%. The top 10 holdings include Gazprom, Sberbank, Rosneft and Novatek.

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