Investment Manager of Balkan Emerging Frontiers Fund attended European Alternative & Institutional Investing Summit held from October 1st till October 3rd 2012 in Monte Carlo, Monaco.
BEF Fund Investment Manager was panelist at a round table on emerging markets named »Can Emerging Markets Deliver Global Growth and is This Growth Sustainable?«, moderated by Oliver Rothschild, the Chairman of Oliver Rothschild Corporate Advisors from London. Investment Manager presented unique potential of stock markets in the countries of former Yugoslavia. He highlighted the huge short term, as well as medium to long term growth potential of these markets. Short term stock value growth potential derives from these regional markets still lagging behind the most of the world. While major global stock markets have been growing for the last three and a half years (and are quoting close to 2007 heights), many stock shares in the region are quoted on only few % of 2007 values. On the medium to long term the region has the greatest potential for growth in Europe, originating from the countries’ outlook to join EU in this decade. Croatia will become a member next year, Macedonia and Montenegro are EU membership candidates for few years now and Serbia as of this spring. Bosnia and Herzegovina is supposed to follow these steps soon. In this process of regional adjusting to European regulation the improvement of security and legal terms will enhance the business environment and investment security. Consequently there will be large inflow of European funds and other investment capital in the region and this will be the last enlargement of EU in foreseeable future. This will not only arouse the investments into infrastructure but also stimulate regional economy growth, increase of mergers & acquisitions and further accumulation of domestic and foreign investment capital into regional financial markets. This will all contribute to substantially higher values of enterprises and higher valuation of securities.
BEF Fund Investment Manager emphasized that the Balkan region has been so far pretty much overlooked while being »Unique opportunity in the heart of Europe«. When the investment capital will start flowing into the region, there will be high responsiveness of the quotations (high Beta), due to currently low liquidity and we will witness large increase of stock value. Time to invest is now. Once the region will be on the cover page of Financial Times, it will be too late for superb returns for everybody.
Panel was continued with discussion on other emerging markets. Other panelists were Paul Forsyth of Dubai based Apache Advisors and Marie Fucci that has two decades of experiences as adviser to World Bank and International Monetary Fund in privatization programs in transition countries.
Panelists agreed that investment managers of funds investing in emerging markets should have local presence in and know-how of emerging markets in order to make the most from investment opportunities. Investment Manager concluded the round table with statement: Managing a bit of everything, might finish in average or more often with poor results. For this reason BEF Fund’s Investment Manager is being completely focused on BEF Fund investment region on 24/7 basis in order to obtain best results for the investors, as for the topmost returns and mitigation of specific risks specialization and focus arecrucial.