We invest in energy – economic growth demands a constant increase of energy consumption.
The aim of Ilirika Modra Energija equity mutual fund is to achieve long-term above average increase of the value of assets by investing in equity securities of companies, which operate in the energy sector.
Ilirika Modra Energija mutual fund is exposed to the so called sector risk, which is decreased by the diversification of funds among various branch groups within the energy sector.
Investments in equity securities present between 75 and 100% of total assets, investments in deposits present between 0 and 25% of total assets. 10% of the assets can be invested in marketable securities, traded on foreign organised markets. Foreign market means a market in the country that is not a member of European communities, operating within the EU.
Investment objectives
Investment policy of Ilirika Modra Energija mutual fund is mostly oriented in equity securities, issued by companies, which operate mainly in the energy branch, or in one of the branch groups within the energy branch:
- Production, distribution and sale of all energy forms and electricity.
- Acquisition and processing of materials (minerals and other raw material)
- Production of equipment for energy supply and electricity
- Research and development of alternative energy sources.
The emphasis in investing is put on European companies and companies, supplying the developing markets, investments in oil companies and equipment producers. Investments are not geographically limited.
The fund’s portfolio is diversified, and it includes investments with variable and permanent return, its objective is to ensure long-term increase of assets’ value, which will originate from capital gains and income profits from dividends and interests. The portion of investments depends on the situation on capital markets; however, the proportion remains within the limitations, listed below.
Energy – today’s opportunity!
The energy sector is strongly connected to two world trends – increase of energy demand and search for alternative sources for energy supply.
Economic growth demands a constant increase of energy consumption. Natural energy sources and low flexibility of offer at increased demand boosts the prices of energy. This has a positive effect on the profits of companies, operating in the energy sector, mostly on companies, which acquire energy (raw oil, gas).
Companies and countries are increasingly investing in research and development of alternative energy sources (wind, solar, geothermal energy) and this is mostly caused by greater awareness of the negative consequences of exploitation of energy sources that are limited (global pollution) and risks in acquiring electrical energy (nuclear stations).
