Baltic

Baltic invests in transferable securities mainly equities and equity-related securities in the Baltic region, primarily in Estonia, Latvia and Lithuania.

The Baltic economies are growing rapidly, and the countries’ growth rates are among the highest in the world. Growth is first and foremost driven by a strong domestic demand and exports. The region is in the process of catching up financially with the old EU-countries, and this has a long-term perspective. We expect that the convergence process will last yet another 40 years, and the companies have great potential for maintaining the present growth level of earnings.

Contact us

Any enquiries or questions in regard to the products can be directed to:

Henrik Schmidt
Head of Global Business Development

Parallelvej 17
DK-2800 Kgs. Lyngby
Tel.: (+45) 45 13 96 66

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Product details

Danske Capital is the region’s largest international asset manager and has been active in the Baltic countries ever since the establishment of the financial markets here at the beginning of the 1990s. We believe in convergence-driven investment opportunities which implies positive excess returns in the Eastern European markets relative to the Western European markets. Still, we believe the stock selection process is the ultimate determinant of strong performance in the asset class. Therefore, we have created a structured investment process where we identify companies that are capable of benefitting from the top-down convergence and the important trends it creates for companies in the Eastern European region.

In our view, the four important convergence-based structural trends across Eastern Europe are:

Increasing wages and prices,
Strong market growth,
More competition,
Efficiency improvements.