Raiffeisen-Osteuropa-Aktien (R)

Fund Management Report

The uncertainty surrounding the movement of troops to the Ukrainian border is still putting the Russian equity market under pressure. By contrast, the Turkish exchange posted a surprisingly strong gain as especially export companies are profiting from the heavily depreciated lira. In Central Europe, the Czech stock market stood out because of the rising share price for CEZ, as the company is profiting from the high European electricity prices. The banking sector is being negatively impacted in general by fears about the new Omicron variant. Russian banks were reduced substantially in the fund because they could be affected the most by financial sanctions should the Ukraine conflict escalate. Conversely, Turkish and Greek shares were purchased. A more defensive positioning was adopted due to the uncertainty in the region. (16.12.2021)