AVANT - Česká pole 2015 otevřený podílový fond

We and our business partners have created several attractive investment opportunities for qualified investors. We are preparing others.

Key indicators

Establishment of the fund:

06/2015

Current value of the investment certificate as at 30.9.2018:

1,6196 CZK

Current value of assets as at 30.9.2018:

CZK 203 903 465

Fund performance over the last 12 months as at 30.9.2018:

16,11 %

Minimum investment in the fund:

CZK 1 million

ABOUT THE AVANT FUND – ČESKÁ POLE 2015 OPEN-END MUTUAL FUND

The fund enables, thanks to its investment in quality agricultural land in the Czech Republic, to provide its investors with protection against possible unfavourable market development in the economic sector. For about 3 years of its existence, the fund proved to have a significant purchasing power. It also achieves better than market conditions when acquiring agricultural land which is reflected in the above-standard yields. The fund's account can also be used to realize opportunistic investments with a short-term or medium-term horizon.

Globally, the price of arable land has been rapidly rising in the recent years and the Czech Republic is no exception. Unfortunately, there is no price index that we could refer to. Nevertheless, the predicted rough estimate of price growth for 2018 stands up to 10 %.

At the same time, the price of arable land in the Czech Republic is still highly "undervalued" compared to Germany or Austria. Or, on the contrary, the price of arable land in Germany may be "overvalued", this very much depends on the point of view. Either way, as was the case of apartments, offices and business premises, the price of arable land in the Czech Republic can be expected to converge to the European average.

Arable land in the Czech Republic is therefore interesting due to its growth potential both as a result of convergence to the European average but also due to the global trend. Demand for arable land as an alternative investment has been substantially growing not only in the Czech Republic but on the global scale and therefore the price of land is increasing – this is also due to the decrease of total area of arable land in the Czech Republic.

INVESTMENT STRATEGY OF THE AVANT FUND – ČESKÁ POLE 2015 OPEN-END MUTUAL FUND

In order to achieve investment goal, the assets of the fund may be invested in particular in the following types of property values:

  1. agricultural properties including any parts and/or accessories;
  2. participation in legal entities that already have or can be reasonably assumed to acquire agricultural properties in the future;
  3. participation in legal entities whose main scope of business is plant and animal production, hunting and related activities (CZ-NACE 01);
  4. claims arising from credits and loans to legal entities that have or can be reasonably assumed to acquire agricultural properties in the future;
  5. Bonds issued by legal entities that have or can be reasonably assumed to acquire agricultural properties;
  6. Movables connected with agricultural properties by purpose;
  7. Property rights to agricultural properties.

AVANT IC (fund manager) searches for agricultural land at attractive prices through its partners. The goal is to purchase land plots in selected locations at prices that are at least 15% lower than market prices by directly contacting the owners.

Furthermore, the manager tactically directs its activity at specific selected land registers in order to obtain a significant area of land which can be subsequently sold for a premium price when compared to the market price. The fund intends to engage part of the portfolio in short-term opportunistic transactions with a time horizon of up to 2 years, bringing investors additional yield. Interesting locations throughout the Czech Republic have been selected for purchase. So far nearly 250 hectares of land have been purchased and invested (31.12.2017).

The source of the fund's return is not only the market movement of agricultural land prices, but also the ability to purchase land at a discount and sell it at a premium. As a part of the investment strategy, the fund manager also intends to focus on more extensive land portfolios that are currently offered by farmers or private investors where favourable terms can be negotiated due to the strong financial position of the fund. At the same time, the fund's investments in these locations can be further increased and thus will improve fund’s position in relation to leaseholders and prospective buyers.

FUTURE DEVELOPMENT FORECAST IN 2018 AVANT – ČESKÁ POLE 2015 OPEN-END MUTUAL FUND

The further development of the legislative environment will be quite important for the agricultural market in 2018 - especially the introduction of pre-emption right which in practice will rather complicate and prolong commercial land transactions. The fund has therefore, at the end of 2017, decided to invest strategically only in land investments with 100% ownership and at the same time the fund will continue to gradually establish its position in selected locations, in particular - Central Moravia.

The fund expects that agricultural land prices will continue to grow, but not in the same level of intensity as they did until 2017. The main factors that will affect such assumption are the international price comparison, the growing Czech economy and the declining area of quality farmed land.

The fund manager expects “quality over quantity trend” and the already mentioned strategic land purchase in areas where there is already an ownership interest. One area of possible future investment seems to be forced sales of medium and large units of agricultural land due to the inability to repay the received loans. These discounted land plots should provide interesting yields during later sale.


Notice for investors

The Fund is a fund of qualified investors pursuant to Act No. 240/2013 Coll. and its shareholder may only become a qualified investor in accordance with Section 272 of this Act. The manager alerts investors that the value of the investment within the fund may decrease and increase and that the return of the originally invested amount is not guaranteed. Fund performance in previous periods does not guarantee the same or higher performance in the future. The investment in the fund is intended to achieve yield in its medium and long term possession and is therefore not suitable for short-term speculation. Potential investors should, in particular, consider specific risks that may arise from the investment objectives of the fund as set out in its statute. The investment objectives are reflected in the recommended investment horizon, as well as in the fund's fees and expenses.

Sharing of Key Fund Information (KID) is available at https://www.avantfunds.cz/en/obligation/. The information can be obtained in paper form at the registered seat of AVANT investiční společnost, a.s. ROHAN BUSINESS CENTER, Rohanské nábřeží 671/15 (reception B), 186 00 Prague 8.

The information given is only informative in nature and does not represent any agreement proposal or public offering, pursuant to the Civil Code provisions.

For more information about Common Reporting Standard (CRS) and Forein Account Tax ComplianceAct (FATCA), visit https://www.avantfunds.cz/en/important-information/.

Are you interested in the fund? Let us contact you.






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