Czech Fund: Largest Regional Investment at $200 Billion
- The J&T Arch fund, a qualified investor fund, has reached a significant milestone, achieving assets under management of 196.7 billion Czech crowns (€8.1 billion) as of the end...
- Investors have seen ample returns over the past year, with investment shares appreciating by 17.23% in the koruna class and 16.03% in the euro class.Dividend class shares experienced...
- The fund's portfolio performance in the third quarter was primarily driven by the revaluation of its largest investment, the J&T Alliance fund.The J&T Alliance fund's primary asset is...
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J&T Arch Fund surpasses €8.1 Billion, becoming the Largest in Central & Eastern Europe
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What Happened: Record Growth for J&T Arch
The J&T Arch fund, a qualified investor fund, has reached a significant milestone, achieving assets under management of 196.7 billion Czech crowns (€8.1 billion) as of the end of September 2023. This makes it the largest investment fund in the Central and Eastern European region.
Investors have seen ample returns over the past year, with investment shares appreciating by 17.23% in the koruna class and 16.03% in the euro class.Dividend class shares experienced a 16.75% thankfulness (including dividend) in koruna and 15.65% in euro.
Driving Forces Behind the Growth
The fund’s portfolio performance in the third quarter was primarily driven by the revaluation of its largest investment, the J&T Alliance fund.The J&T Alliance fund’s primary asset is an indirect 44% stake in Energetický a průmyslový holding (EPH), owned by Daniel Křetínský. Growth in Moneta Money Bank shares and the investment in the BHP Hotels fund also contributed to the overall appreciation.
Key Investment: Energetický a průmyslový holding (EPH)
Energetický a průmyslový holding (EPH) is a leading energy and industrial group in Central Europe. Its diverse portfolio includes power generation, distribution, and heat production, as well as investments in various industrial sectors. The fund’s significant stake in EPH provides exposure to a crucial sector with long-term growth potential.
Strategic acquisition: Allwyn International
In August, J&T Arch made a substantial investment, acquiring a 4.27% stake in Allwyn International,a global gambling group,from KKCG investment group for approximately €500 million (CZK 12.3 billion). This represents one of the fund’s largest individual transactions to date.
Why This Investment Matters: Diversification and Global Reach
According to Adam Tomis, a member of the J&T Arch investment committee, the Allwyn International investment is a strategic move to diversify the portfolio both sectorally and geographically. He highlighted Allwyn’s position as a global leader in the gambling industry, managed by a competent international team led by Karel Komárek, a prominent czech investor.
“For our portfolio,this investment represents a welcome diversification both from the point of view of sectors and from the point of view of geography.We gain exposure to a robust investment platform of one of the