Universitatea de Vest, Facultatea de Economie si de Administrare a Afacerilor

STK FINANCIAL INVESTMENTS

STK EMERGENT

REALIZAT DE:

 Crisan Sergiu-Laurentiu
 Corsiuc Ioan-Adrian

Specializare: Finante-Banci

An 1

Seria 02

Grupa 2
 CONTENTS

1. Company description
2. Product description
3. Bibliography
 COMPANY DESCRIPTION
STK Financial is an asset management company established in 2005 by private persons with
experience in the capital markets.

The company manages the STK Emergent fund, one of the largest local stock funds, and the first
closed-end fund listed on the Bucharest Stock Exchange in 2008.

The company’s strengths are the identification of investment opportunities in the stock market
and the practice of active management, which allow us to post high returns.

The executive management is provided by a young team of specialists in stock exchange and
investments on capital market.

The company’s main objective is to enhance the investors’ wealth by abiding by the rules of
prudent management.

Institutional investment management

Headquarters: Cluj-Napoca, 29 Heltai Gaspar street

Telephone number: 0264 591 982

Web site: http://www.stk.ro/en/

STK FINANCIAL Asset Management Company carries out the following activities:

 Management of open-end investment funds established in Romania or any other member

state, and authorized by the Financial Supervisory Authority (FSA);
 Management of closed-end investment funds authorized and registered with the FSA.
 PRODUCT DESCRIPTION

STK Emergent is a closed-end investment fund that publicly raises capital founded at the
initiative of STK FINANCIAL Asset Management Company.

The Fund is endorsed by the National Securities Commission under no. CSC08FIIR/120004
from February 7, 2008.

 Assets, market share

Managing assets amounting to RON 71 million by the end of December 2016, STK Emergent is
one of the largest local stock funds, with a market share exceeding 26% of the closed-end stock
fund market.

 Objectives

The fund aims at returns higher than the BET market index. The fund also aims at a 25% return
p.a. on the managed assets, and at distributing dividends to investors of the profit made.Another
of the fund’s objectives, ever since its establishment, was to be listed on the Bucharest Stock
Exchange.

 Management strategy

The management strategy provides for active management through the allotment of capital to the
stocks and sectors with the highest growth potential. This category especially includes stocks that
are undervalued as compared to industry average, or stocks with high potential for future growth.

For this purpose, quantitative models are used alongside already traditional methods (calculation
of relevant indices, rates of return, market trends, volatility and deviations). At the same time,
stocks are selected by modern management methods: portfolio theory, risk management, and
fundamental and technical analysis.

 Asset allocation
Historically, the fund’s capital had been invested in financial and real estate shares. Information
on the portfolio structure can be found in the net asset report.

In terms of real estate, the fund owns a plot of land of approx 2 ha in Cluj-Napoca through 2
companies: STK Properties amd Emergent Real Estate.Cluj-Napoca is one of the most dynamic
cities in Romania, the second largest city, after Bucharest, by population and revenue, and has
seen major investments in services and IT (ClujBusiness).

Since 2014 the Fund’s capital has been invested in stocks listed on the European stock markets.

 Returns

Since its establishment, the return of the fund has been constantly higher than the stock market
indices (see the NAV Report).

In 2016, the return of the fund’s stock portfolio was 27.4%, while BET index grew by 1.15% and
BET-FI index fell by 1.87%.

 STK Emergent price history

 View the changes in the price of STK Emergent unit (symbol: STK) on the website of
the Bucharest Stock Exchange.
 BIBLIOGRAPHY
http://www.stk.ro/en/about-us/

http://www.stk.ro/en/stk-emergent-en/presentation/

http://www.stk.ro/en/stk-emergent-en/documents-of-incorporation/

http://www.bvb.ro/infocont/infocont18/STK_20180315180445_Raport-anual-STK-Emergent-
2017.pdf