Professional Investors approach November 2017

Investor types The investment decision process depends to the investor type. Criteria and the approach vary significantly. Individual investors Institutional investors

Investor types individual Depends on the risk appreciation Conservative: risk averse Moderately Conservative: willing to take on some amount of risk Moderate Aggressive: similar as aggressive with less risks Active: invest mainly in stock markets Emotional: attracted to fashionable investments Busy: need to be involved with the markets Casual: a laid-back attitude to investment, often hardworking and involved with work or family

Investor types institutional (ex-public) Depends on in-house process Own Investment Philosophy Own Investment Process Corresponding schemes Investment policy Corresp. investment selection and monitoring (check-lists…) Commercial banks Insurance company Charity trusts or association Traditional Mutual Funds Hedge Funds

Investor types institutional (ex-public)

Main rule In case of acceptance of higher risk, a couple of rules are verified. Closest case to South-East Europe countries: No institutional investors: Country risk Small market area Liquidity Currency Inadequacy between investor investment and monitoring process with local working approach Private individual or corporate investor

If you are the investor? Gain Risk What a country makes more attractive for you? What real differences between Latvia and Lettonia ? Same in the other way: Investors do not care about nationality Investors do not care about friendship But do care about: Stability – visibility Make money Gain Risk

Distressed Investments Gain/Risk ratio Distressed Investments Return Attractive Decision Prime Traditionnal Unattractive Risk free (1%-2%) Risk

Investments per Gain/Risk ratio

Gain/Risk ratio Where your investment is ? Distressed Investments Return Attractive Decision Prime Unattractive Traditionnal Risk free (1%-2%) Risk

Gain/Risk ratio Where your investment is ? Distressed Investments Return Attractive Decision Prime Unattractive Traditionnal Risk free (1%-2%) Risk Stability professional project management controlled off-the records involvement

Fundamental Indicators Economic & Financial

GDP growth rate

Public Debt (%GDP)

Inflation

National Savings (%GDP)

FX Rates

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