Letters to shareholders

Portfolio performance and composition

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To evaluate the results of our current investment strategy, the Fund’s board of directors uses the following graph.

This graph compares the development of the Fund’s NAV with the development of world equity markets as represented by the MSCI World Index for the entire period in which we were following the current investment strategy. That means since the beginning of 2009.

As can be seen in the graph, the Fund’s NAV increased over the full period by 226%. World equity markets grew by 149% for the same period. *

Even though comparing the Fund’s returns with indices may seem like a good idea, it is always necessary to be mindful of this method’s limitations. In our case, there are specifically these qualifications:

1. It is not our objective to beat any specific index, and any comparison with an index for global equity markets only helps to paint a certain picture of the results under our current investment strategy.

2. Comparisons with the index do not at all take into account the Fund’s risk level. In our case, this is much lower than the risk of the market as a whole.

3. If we do make such a comparison, it is necessary to do so for a period corresponding to the Fund’s investment horizon. In our case, this is a minimum of five years. Any shorter period has practically no information value. This is due to two reasons: The first reason is that we set no short-term objectives. Our strategy is a long-term one, and we do not try to achieve certain results within short-term horizons of less than three years. The second reason is that our strategy is founded on a concentrated portfolio of selected, attractive investments. There are 19 such investments today, and the 10 largest ones account for approximately 77% of the portfolio. In shorter periods, portfolio returns must always diverge from those of the equities markets as a whole, and in both directions.

4. The Fund’s NAV is calculated in Czech crowns while the MCSI World Index is calculated in the local currencies of the individual countries. If the returns of this index were converted to crowns and the Fund’s costs for currency hedging were taken into account, the difference between the returns of Vltava Fund and those of the index would be still greater.

Vltava Fund’s current portfolio is distributed as follows: 


*Footnotes: 1. Data as at 30 June 2020. 2. The MSCI World Index is calculated in local currencies. 3. Information concerning the investment strategy during 2004-2008, returns, and the change to the present investment strategy can be found in letters to shareholders and annual reports.


For further information, contact Vltava Fund SICAV, Plc:


Suite 2, Level 3, TG Complex
Brewery Street
Mriehel BKR 3000, Malta


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