Investment policy

The key elements of the Investment Policy can be summarized in the following points:

Investment Theme

East Capital Explorer’s main investment theme is domestic growth and the Company targets companies in fast growing sectors, such as Retail and Consumer goods, Financials and Real Estate.

Countries

East Capital Explorer may invest in the Balkans, the Baltic States, Central Asia, Central Eastern Europe and the CIS countries, including Russia.

Sectors

East Capital Explorer targets the sectors that have most to gain from the long-term, positive trends in Eastern Europe. Based on this criterion, we have identified retail and consumer goods, real estate, banking and finance as particularly important. The weighting of East Capital Explorer's portfolio is set with a long term perspective. Although these sectors will most likely continue to be a priority for us in the future, developments in the markets and in different sectors are monitored on an ongoing basis, which implies that our focus might shift between these sectors over time.

Asset types

East Capital Explorer primarily makes direct investments in selected companies in the region. The Company can also make investments into future East Capital Private Equity Funds and Real Estate Funds as well as in existing and future East Capital Alternative Funds. East Capital Explorer also has the possibility to make limited investments in East Capital’s open-ended daily-traded funds. Investments can be made in several asset types, including shares, fund units, options, convertibles, derivative instruments and other equity-related instruments. Debt investmentsare also permitted if related to an equity investment. In conjunction with investments in the real estate sector, investments can also be made in land, real estate and other property.