OREANDA-NEWS. Starting from the 3rd of June this year, ABLV Group offers new investment opportunities to its customers. The range of our open-end mutual funds is expanded by adding two new corporate bond funds: ABLV European Corporate EUR Bond Fund and ABLV Global Corporate USD Bond Fund.

Just like six existing mutual funds (4 bond funds and 2 stock funds), the new funds are also managed by ABLV Asset Management, IPAS. The Financial and Capital Market Commission has registered the said new funds on the 16th of May this year.

ABLV European Corporate EUR Bond Fund

Corporate bond fund with moderate investment strategy and balanced risk level. The fund is aimed at achieving capital growth that is substantially higher than that ensured by interest rates under deposits in euro. To reach this objective, the fund’s assets are invested in corporate bonds with high coupon yield and good market liquidity issued by European companies. The investments are primarily made in the euro zone countries, as well as other EU countries, Norway, Turkey, and Switzerland. The fund’s initial amount will be EUR 4 million.

ABLV Global Corporate USD Bond Fund

Corporate bond fund with moderate investment strategy and balanced risk level. The fund is aimed at achieving capital growth that is substantially higher than that ensured by interest rates under deposits in US dollars. To reach this objective, the fund’s assets are invested in corporate bonds with high coupon yield and good market liquidity. The investments are primarily made in countries where companies issue bonds in USD. These are mainly the USA, as well as Latin American, Asian and European countries. The fund’s initial amount will be USD 5 million.

“High-yield corporate bonds look the most attractive in fixed income asset class, since those usually ensure higher yield and shorter term to maturity than government bonds. Higher yield means higher profit potential, while shorter term to maturity – smaller range of the bond price fluctuations. Also, due to wide offer of corporate bonds issued by companies operating in different regions and sectors of economy, European and Global USD market corporate bond funds allow good diversification of investments,” Sergejs Gacenko, manager of the new funds noted. The new funds will be also available to customers of ABLV Bank Luxembourg.

As reported earlier, by the end of April, total asset value of six existing open-end mutual funds managed by ABLV Asset Management, IPAS, exceeded EUR 75 million.

Over the first four months of 2013, total value of our mutual funds has increased by more than 52%, i.e., approximately by EUR 27 million. The growth of the funds’ value was due to increasing interest in financial markets and customers more and more willing to diversify their investment portfolios by acquiring shares of ABLV funds.

ABLV Bank, AS is the largest independent private bank in Latvia. The bank’s majority shareholders — Olegs Fils, Ernests Bernis and Nika Berne – directly and indirectly hold 86% of the bank's voting share capital. ABLV Group includes ABLV Bank, AS; ABLV Bank Luxembourg, S.A.; ABLV Capital Markets, IBAS; ABLV Asset Management, IPAS; Pillar Holding Company, KS; ABLV Consulting Services, AS; ABLV Corporate Services, SIA; New Hanza City, SIA, and other companies. ABLV Group has representative offices in Moscow, St. Petersburg, Yekaterinburg, Kiev, Odessa, Minsk, Almaty, Dushanbe, Baku, and Tashkent.