Strategic location of the region ► ideally situated for building trade links b/n Western Europe, Middle East and Asia. Infrastructure has significantly improved with major investments planned in mid-term
Most countries are members of EU, OECD and NATO ► major changes in economies and business environment. Some have already adopted the Euro. Legal, regulatory and business conditions have marked solid improvement; regulatory framework synchronized following EU accession.
Stable economies with low level of government debt ► below 50% of GDP for the region vs. 89% for euro-zone
Emerging Europe boasts well-educated and relatively inexpensive workforce ► labor force with tertiary education on the rise. Wages growing, but still lowest labor costs
Favorable tax regimes ► significantly lower tax rates (e.g. 10% corporate income tax in Bulgaria)
Strong support from EU funds ► Total: €175.7 bln = 16.2% of GDP on ave during 2007-2013
|Emerging market and developing economies||4.3%||4.4%||4.7%||4.7%||4.7%||4.9%|
|Commonwealth of Independent States||-2.0%||0.4%||2.1%||2.4%||2.4%||2.4%|
|Emerging and developing Asia||6.8%||6.5%||6.5%||6.5%||6.3%||6.4%|
|Emerging and developing Europe||4.7%||3.3%||6.0%||3.8%||2.0%||2.8%|
|Latin America and the Carribean||0.3%||-0.6%||1.3%||1.2%||2.2%||2.7%|
|Middle East and North Africa||2.4%||5.2%||1.8%||2.0%||2.5%||2.9%|
* Source: IMF WEO October 2018
Corporate tax rates
Labor cost per hour ( E ), 2017
Taxes much lower in CEE vs. developed world
States provide tax incentives & additional stimulus to attract foreign investors
While convergence has been driving income growth, wages are still far below European averages
Min wages range b/n €194 in Bulgaria and € 425 in Turkey, vs. €1,473 in Germany and €1,500 in UK
ex RU, €
P/E per country, ttm
Over 15 years we’ve built a solid reputation as a reliable partner -- our relationships with clients and partners are based on mutual trust and alignment of interests. We work with various local and international institutions in helping clients tap into the potential of Emerging Europe. We establish deep and enduring relationships with our clients to fully understand their unique investment needs.
Since 2012 we represent one of the top global asset managers, Schroder Investment Management (Schroders) in the local markets.
Since 2016 our Canadian partner is Cheverny Capital, affiliate of Cordiant Capital, a Canadian EMD specialist.
In Asia we work with Daishin Asset Management in managing the investment portfolio of K-Biz (Korea Federation of Small & Medium Business) - one of Korea’s top institutional investors, focusing on Emerging European equities.