Convergence incl. Russia

Danske Capital believes in convergence-driven investment opportunities implying a positive excess return 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. We have therefore created an investment process where convergence filters are the central part in discovering companies that are capable of benefitting from the top-down convergence and the important trends this creates for companies in the Eastern European region.

We believe that the four most important convergence-based structural trends across Eastern Europe are: 

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