We invest in securities of companies with small market capitalisation.
Ilirika Modra Gazela mutual fund mainly invests in equity securities of companies with small market capitalisation. Small market capitalisation of a company means that the capitalisation cannot exceed EUR 2bn. This is an amount that on the world’s level presents the limit for small capitalisation of equity security issuer - “small cap”.
Investment objectives
The portfolio of Ilirika Modra Gazela equity mutual fund includes:
- 75 to 100% of investments in equity securities
- 0 to 25% of investments in shares or units of other target investment funds
- 0 to 25% of redeemable deposits
Investments in equity securities of small-cap companies present between 75 and 100% of all funds’ assets.
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.
Advantages of investing in Ilirika Modra Gazela equity mutual fund
- Investments in small companies’ shares on developed markets have in the past proved as more profitable than investments in shares of larger and renowned companies.
- Small companies are distinguished by better flexibility and capability of adjusting to trends, which enables companies to achieve better growth levels.
- Since small companies were less noticed on the developing markets, the prices of their shares lag behind the prices of shares of larger companies. We can expect that the prices of small companies’ shares will increase in the future.
- The highest risk level means the highest expected return.
- This is the first Slovenian mutual fund that invests in the emerging markets.
