OREANDA-NEWS. October 12, 2009. As the debt securities market in the CIS countries showed signs of improvement, the performance of the Parex Bond and Balanced Funds have showed substantial growth, significantly regaining the losses from the previous months, reported the press-centre of Parex banka.

During the first 9 months of 2009 Parex Eastern European Bond fund showed a performance of + 60.67%* in absolute terms, but since the inception in 2003 the value of its shares increased by 40.1%*. The fund invests primarily in corporate bonds in the CIS and Baltic countries and is U.S. dollar denominated.

Parex Eastern European Balanced Fund, which does not only consist of a diversified portfolio of fixed income instruments, but also invests in shares of enterprises in Eastern Europe, during the first nine months showed a performance of +52.45%** in absolute terms, while returns since inception of the fund in 2003 amount to +30.8%**. The Fund invests in a wide range of tools that provides additional reliability and investment protection from fluctuations in the value of the Fund. The annualized performance of the funds since inception is around 5%.

Robert Idelson, president and CEO of investment management company Parex Asset Management commented: "The performance results of Parex bond funds once again evidence that investments in Eastern European fixed income instruments can provide high returns even in times of a deep recession. As usual, those investors who did not follow the global panic trend and continued to invest in these funds - are in the winning situation now".

Peer analysis of Parex Eastern European Bond Fund***

The bond markets in the CIS countries at the end of 2008 were negative, but in the first quarter of 2009, the markets normalized and trade activity resumed. Due to the fact that the subject of signs of growth in global markets dominated most of the second quarter of 2009, there was an active "rally" in the debt market of the CIS.

Investment recommendations, including an overview of trends and prospects in the bond markets, are published by a team of Parex Asset Management (PAM) analysts on a quarterly basis. In addition to investment outlook, a team of PAM analysts make regular reviews of the stock markets in Russia and Ukraine, bond markets of Eastern Europe, as well as produce monthly research on Latvian macroeconomic situation called “Latvian Macro Monitor”. PAM research is available online at the Company’s website www.parexam.lv.

About Parex banka
Founded in 1992, Parex banka currently employs some 2,000 people at branches all over Latvia and offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. Parex banka is the only partner of American Express in Latvia and Lithuania, allowed to issue American Express credit cards. Currently, the Latvian Privatisation Agency is the majority shareholder of Parex banka, holding 70,3% of the Bank’s shares, but 25% are controlled by the European Bank for Reconstruction and Development. Parex banka has signed up to the European Code of Conduct on housing loans.

* 60.67% - Parex Eastern European Bond fund’s performance as of 30.12.2008 - 1.10.2009. 40.1% - Parex Eastern European Bond fund’s performance since inception (12.03.2003 -1.10.2009).

** 52.45% - Parex Eastern European Balanced Fund’s performance as of 30.12.2008 -1.10.2009. 30.8% - Parex Eastern European Balanced Fund’s performance since inception (7.10.2003 -1.10.2009).

*** Comparison to 29.05.2008 to 24.09.09, funds Parex Eastern European Bond Fund, Evli Ruble debt, UBS Russia Bond Fund and DWS Russia Bond Fund. Historical results do not guarantee future performance. Management company: IPAS Parex Asset Management, Republikas square 2a, Riga, LV – 1010. Custodian: AS Parex banka, Republikas square 2a, Riga, LV – 1522.