The Black Sea Region Investment Fund established by Invalda Turto Valdymas UAB is starting its activities today. Yesterday the Securities Commission of the Republic of Lithuania approved the establishment of the fund.
“Investment in this region is of course rather risky, but it was the low price level of the shares and the attractiveness of the economies of the region – this part of the world is a logistics artery between the East and the West – that stimulated the establishment of this fund. Due to the general situation in the markets, preference has recently been given to investments into more economically stable regions. We estimate that the current low share prices in the Black Sea region considerably reduce the risk of a loss-making investment. In addition, in the event of favourable circumstances, an impressive growth in the value of the fund can be expected”, Andrius Barštys, managing director of Invalda Turto Valdymas UAB, says.
The geographical area of the Black Sea region investment fund includes such countries as Turkey, Bulgaria, Romania, Ukraine, and Georgia. The fund will invest into the shares of medium-sized companies in the region.
The investment strategy of the fund is based on the stock picking strategy and the strategic asset allocation method, as well as the regular adjustment of the portfolio, which will allow a rate of return higher than the average to be achieved. The recommended minimal investment period is 3 to 5 years.