Ukraine Situation: A Message From Your Fund Manager

In light of the volatile situation on the global capital markets, I wanted to take the opportunity to clarify the exposure of AKRO's funds to Russia/Ukraine/Belarus following Russia's invasion of Ukraine.

Neither the AKRO globální akciový fond, AKRO fond progresivních společností, or AKRO balancovaný fond have any investments in Russia, Belarus or Ukraine. While the financial markets remain volatile, the financial impact of the war on these funds has been broadly neutral, both positive and negative.

Prior to the Russian invasion, the AKRO akciový fond nových ekonomik had just under 10% invested in Russia (Gazpromneft ADR 4.5%, Norilsk Nickel ADR 4.2% and VTB Bank GDR 1.1%). Post invasion, the value of these investments has more than halved reflecting the sharp drop in the Russian stock market. The value of VTB Bank (subject to sanctions) has been written down to zero for fund valuation purposes. While the fund has enjoyed currency gains linked to the funds HKD/USD denominated investments, and significant exposure to CEZ, these have not been enough to offset the Russian related losses.

The fond nových ekonomik's exposure to Russia is clearly now much less. Historically, many geopolitical crisis have been quickly resolved and it is possible that this may be the case once again. Should this not prove the case, it is likely that central banks will delay monetary tightening which will underpin global equity market valuations.

Before concluding, may I take the opportunity to express my deepest sympathies to all those affected by the current situation in Ukraine.

Jeremy Monk

AKRO investiční společnost, a.s.

1st March 2022