- Assets, market share
Managing assets amounting to RON 67 million by the end of December 2017, STK Emergent is one of the largest local stock funds.
The fund aims at returns higher than the BET market index. The fund also aims at a 25% return p.a. on the managed assets, and at distributing dividends to investors of the profit made.Another of the fund’s objectives, ever since its establishment, was to be listed on the Bucharest Stock Exchange.
- Management strategy
The management strategy provides for active management through the allotment of capital to the stocks and sectors with the highest growth potential. This category especially includes stocks that are undervalued as compared to industry average, or stocks with high potential for future growth.
For this purpose, quantitative models are used alongside already traditional methods (calculation of relevant indices, rates of return, market trends, volatility and deviations). At the same time, stocks are selected by modern management methods: portfolio theory, risk management, and fundamental and technical analysis.
- Asset allocation
Historically, the fund’s capital had been invested in financial and real estate shares. Information on the portfolio structure can be found in the net asset report.
In terms of real estate, the fund owns a plot of land of approx 2 ha in Cluj-Napoca through 2 companies: STK Properties amd Emergent Real Estate.Cluj-Napoca is one of the most dynamic cities in Romania, the second largest city, after Bucharest, by population and revenue, and has seen major investments in services and IT (ClujBusiness).
Since 2014 the Fund’s capital has been invested in stocks listed on the European stock markets.
Since its establishment, the return of the fund has been constantly higher than the stock market indices (see the NAV Report).
In 2016, the return of the fund’s stock portfolio was 27.4%, while BET index grew by 1.15% and BET-FI index fell by 1.87%.
The fund was established in 2006 by privately raising capital to take advantage of the opportunities in the stock market, which had been growing for several years (between April 2001 and December 2005 the main stock market indices posted 3 and 4 figure returns).
In September 2008 STK Emergent was listed on the Bucharest Stock Exchange, and became the first closed-end stock fund to be listed in the Fund category.
During the financial crisis, the fund management mainly sold the less liquid investments and reinvested the capital in blue chip stocks (large capitalization), which are the first to benefit when the stock exchange starts growing again.
In 2013, 2014, 2015 and 2017 the Fund paid out dividends to its investors from the profit made in the previous years.
- STK Emergent price history
View the changes in the price of STK Emergent unit (symbol: STK) on the website of the Bucharest Stock Exchange.