2025 - Another Good Year for AKRO’s Funds

In terms of performance, 2025 was another good year for AKRO's Funds. Initial market jitters in February, surrounding Donald Trump's tariff policies, proved to be a buying opportunity: Falling interest rates, better than expected corporate profits and excitement around Artificial Intelligence, (AI) propelling equity markets higher. Units in our New Economies Fund saw their value rise +22.9%, helped by strong performances from investments in companies including Samsung Electronics +130.8% (Technology), Lion Finance +107.1% (Banking), and Woori Financial Group +101.1% (banking).

The former C. S. Funds also did well. Excluding the court case related reserve, the value of the Global Share Fund rose +25.5 % and the Balanced Fund rose +21.1%. Both funds were helped by investments in Sandisk +560% (Memory Chips), Western Digital Corp +283.8% (Memory chips), Lion Finance +107.1% (Banking) and CA Nord de France +101.7% (Banking). Incidentally, the memory chip companies Sandisk and Western Digital (which split from each other in February 2025) were the two best performing shares in the S&P500 index last year. Lastly, despite 2025 not being a particularly good year for smaller companies, the Progressive Fund rose +19.7 % helped by good stock selection, notably Nihon Dengi Co +140.4% (Building Products) and CA Nord de France +101.7% (Banking). As a result of strong investment gains over the last few years, both the Global and Progressive funds now have a positive NAV, even including the court case related reserve.

However, it is a sad indictment of the Czech capital market that 28 years after the former C. S. Funds were defrauded, after multiple acts of maladministration by officials, more than 50 000 investors in these funds still haven't received either an apology or compensation from the Czech State.

It remains your Fund Manager's belief that the Czech Republic will never have a thriving capital market unless investor protection is improved and state institutions are held accountable for their actions.

Jeremy Monk
Investment Director,
AKRO investiční společnost, a.s.
e-mail: monk@akro.cz

Disclaimer

This article does not constitute investment advice or a recommendation to buy or sell any security.