In a statement,
"More importantly, a sharp rise in capital flight tightened liquidity further and stifled banks' lending appetite, essentially killing the chances of an economic recovery,"
"The portfolio was positioned to benefit from the likelihood of a better economic environment in
"When markets react to geopolitical crises, there is often a random element in the impact on individual securities. It is only some time after the events that calmer analysis can allow the stock picking approach pursued by your manager to reassert itself," Bates added.
The Chairman said that it seems "inappropriate" to say that the return is disappointing.
"In the board's view the returns of the last six months tell us nothing about the investment approach and everything about the dynamics of a market crisis. We remain confident in our manager and expect that his approach will be successful as markets recover from the cardiac arrest they suffered in February," Bates said.
Siller admitted recent performance has been disappointing.
"While recent performance has been disappointing due to being underweight relative to the index in
"We remain confident that our management approach of identifying aptly priced growth opportunities can work in an environment where a large part of the emerging European market trades at multi-year lows relative to developed markets. Recent evidence of increased fund flows into the region, in spite of the politically induced volatility, makes us positive that the attractive combination of cheap valuation and solid growth prospects will continue to attract attention and prove rewarding for investors over the longer term," Siller said.
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