Sinisa Gjerek,

Portfolio Manager

NFD Aureus Invest

Investing in debt markets across the world, the WIOF Global Emerging Markets Bond Fund offers investors the chance to take advantage of emerging markets’ fundamental potential and the opportunities of investing in a complete range of sovereign and corporate bonds in hard and local currency.



The Fund offers exposure to the entire range of global emerging market (EM) debt markets - hard currency sovereign and corporate debt as well as local currency debt in markets in Europe, Asia, Africa, the Middle East and Latin America. Aimed at maximising total investment return, the Fund is ideal for investors interested in specialised capital markets.



As the global financial crisis fails to abate, investors are turning away from struggling developed markets towards emerging markets. Attracted by the positive structural and fundamental characteristics of emerging market economies, including, for instance, generally much stronger economic growth and debt-to-GDP ratios, emerging markets are seen by many investors as offering better prospects for returns. The relatively strong debt positions of many emerging markets in comparison to developed states is one of the biggest draws for investors: while the average debt burden of developed markets is above 100% of GDP, the figure in emerging markets is less than 40% of GDP. And emerging market debt is especially attractive given the low-interest rate environment in many developed markets – an environment which looks set to prevail for some time to come given monetary authorities’ stated policy strategies. This attractiveness also makes exposure to emerging market debt ideal as part of a wider portfolio of investments, offering diversification and the potential to enhance returns.




The global nature of the Fund allows investors to take advantage of the positive qualities of diverse emerging market regions to make the best of their investment. Each emerging market region in the Fund’s investment focus has strong fundamentals which underpin its investment opportunities:


  • In Africa, South Africa is the continent’s stand-out economy with sustainable fiscal policies and improving domestic demand.
  • The Asia Pacific region is economically resilient and domestic demand in what is the world’s most populated area should help its economies towards more sustainable growth.
  • CIS countries’ public finance positions have remained relatively strong compared to other regions while Emerging Europe is also persistently undervalued to its actual credit ratings and has a firmly-intact growth story which continues to unfold.
  • Latin America’s economies are in good shape and strong domestic demand is sustaining the growth of key regional economies.





The portfolio manager employs a complex investment and asset allocation process including:


  • The use of custom-made portfolio optimization models combining fundamental and quantitative investment strategies
  • Implementation of custom-designed algorithmic trading systems


The company also engages in enhanced index tracking portfolio management designed to beat a benchmark or comparative index. This involves:


  • Regression analysis
  • Sector weight matching
  • Macroeconomic analysis
  • Sector analysis



Bonds should perform positively over 2013, especially later in the year as markets react to an expected stronger EU framework including new financial and economic structures. Europe in particular should see a revival in 2013. In terms of individual countries, Russia looks to be a very good bet. Huge foreign inflows are expected, mainly from institutional investors, and the RUB is forecast to perform very strongly in the coming year. Combined, these factors make Russian government debt look very attractive.




The Fund’s investment adviser is NFD Aureus Invest - the largest private asset management company in Croatia. Boasting one of the most diversified product portfolios among asset management companies in the region, it is also recognized for its innovative asset management concepts and technologies. The company has developed custom-made portfolio optimization models which combine fundamental and quantitative investment strategies aimed at reducing the subjective decisions of fund managers as part of an active management stock picking process.


IMPORTANT NOTE: This report has been prepared for information only, and it does not represent an offer to purchase or subscribe to shares. World Investment Opportunities Funds (“WIOF”) is registered on the official list of collective investment undertakings pursuant to part I of the Luxembourg law of 17 December 2010 on collective investment undertakings as an open-ended investment company. WIOF believes that the information is correct at the date of production while obtained from carefully selected sources considered to be reliable. No warranty or representation is given to this effect and no liability can be assumed for the correctness or accuracy of the given information which may be subject to change at any time, without notice. Past performance provides neither a guarantee, nor an indication of future performance. Value of the shares and return they generate can fall as well as rise. Currency fluctuations, either up or down, may also affect value of the investment. Due to continuing market volatility and exchange rate fluctuations, the performance may be subject to significant changes over a short-term period. Investors should be aware that shares in the financial instruments entail investment risks, including the possible loss of the invested capital. Performance is usually calculated on the basis of the relevant NAV unless stated otherwise. Performance shown does not take account of any fees and costs associated with subscribing or redeeming shares. It is assumed that all dividends were reinvested. WIOF prospectus is available and may be obtained through www.1cornhill.com. Before investing in any WIOF Sub-fund(s) investors should contact their financial adviser/legal adviser/tax adviser and refer to all relevant documents relating to the WIOF and its particular Sub-fund(s), such as the latest annual report and prospectus that specify the particular risks associated with the Sub-fund, together with any specific restrictions applying, and the basis of dealing. In the event investors choose not to seek advice from a financial adviser/legal adviser/tax adviser, they should consider whether the WIOF is a suitable investment for them.