Prince Liechtenstein’s investment company invested in Georgia, Armenia and Angola

The company LGT Capital Partners, owned by the princely family of Liechtenstein, invested money in debt instruments of Armenia, Georgia and Angola, writes Bloomberg.

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The debt markets of these countries are ahead in growth of developing markets, which are more popular with investors.

The company LGT Capital Partners, which manages assets worth about $85 billion, is owned by the princely family of Liechtenstein. It manages funds of more than 600 institutional clients in 43 countries.

In 2021, LGT created bond funds of developing markets and “exotic” markets. In 2022, the LGT Capital Partners fund, which invests in the debt obligations of developing countries, showed results that were better than 99% of its competitors, according to Bloomberg, which tracks about 5,000 companies. bond funds of developing markets.

According to the agency, the LGT Capital Partners fund outperformed its competitors in profitability by an average of 19 percentage points.

This year, the dynamics of assets in developing markets disappointed growth-minded investors. LGT said it shuns popular deals such as Mexican or Egyptian assets and instead looks for options to invest in the debt obligations of countries that are not included in any underlying indexes.

“One of the secrets of our work is that we try to invest in markets that are not very popular,” Jethro Sikkinen, head of LGT’s emerging markets debt instruments department, told Bloomberg in an interview. At the same time, in his opinion, the majority of managers in the world invest in developing markets in almost the same instruments.

In small markets, as a rule, there are more country-specific sets of risks and potential benefits than in larger countries, where investments are more sensitive to broad changes in the global attitude of investors to risk, Sikkinen said.

He pointed to the dynamics of the currencies of his main rates in non-standard markets: the exchange rate of the Armenian dram against the dollar has grown by 25% over the past year — this is the best result among approximately 70 exotic currencies tracked by Bloomberg over the past four quarters.

During this period, the Georgian lari increased by more than 20%. During the same period, 20 out of 23 major currencies of developing countries depreciated against the dollar.

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Source: Ministry of Finance

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