Advance Eastern Europe Fund Ranks #1 by YTD Return

Karoll Capital’s flagship mutual fund - Advance Eastern Europe is the investment vehicle with the best YTD performance (as of 30 Sep 2019) in Bulgaria: + 23.06%. Another one of Karoll’s funds - Advance Global Trends - also makes it in the top 5 with a yield of +15%.

The positive development of the Russian market is the key driver behind the strong performance of Advance Eastern Europe since the beginning of the year. With a 45% weight in the fund's portfolio, Russian equities contributed to 2/3 of the realized gain. The fund generated about half of its return from exposure to the energy sector and the mining industry, commented Karoll Capital’s experts.

Even after this strong YTD growth, the CEE region remains the cheapest globally, trading at a deep discount to other emerging markets. Given the relaunch of monetary stimulus by major central banks, Karoll expects some of this additional liquidity in the global financial system to flow into riskier assets. As trade wars subside and positive sentiment returns to emerging markets, Central and Eastern Europe is in a position to gain by attracting investments.

Data at the end of the third quarter show that Bulgarian asset managers administer BGN 1.62 billion AUM, and in September the size of local mutual funds increased by BGN 13.58 million.