The name of KD Funds has officially changed to Generali Investments LLC while its brand identity will now be linked to the iconic lion of St. Mark, the symbol of Venice and of the Generali Group.

The existing range of products and services will be maintained and in the future will undergo a process of rebranding and continuous improvement, incorporating the innovations and best practices acquired through the extensive international experience of the Generali Group. The rebranding process will not affect our clients or ongoing business agreements.

Josef Beneš, Chief Investment Officer of Generali CEE Holding B.V. and Chief Executive Officer of Generali Investments CEE, said: “KD funds, becoming Generali Investments, is home to the most renowned and awarded team of local experts and boasts the longest tradition of asset management on the SEE markets. All the current advantages of its value creation capabilities will be amplified by the access to the global know-how and opportunities provided by the Generali Group.”

Luka Podlogar, President of the Management Board of Generali Investments LLC commented: “We combine our excellent asset management performance and unmatched knowledge of our investors’ needs with a truly global platform. In the following period, our team’s purpose is to deliver even better results with the help of innovative, accessible and personalized services.”

The Generali Group has been operating in Slovenia since 1997. In line with its Generali 2021 strategy and its vision to develop in Slovenia and the entire Austria, CEE and Russia Region, Generali significantly increased its presence on the local market in 2018, after signing an agreement with KD Group to acquire the entire corporate capital of KD Funds and Adriatic Slovenica. The transactions were finalized after receiving the approval of the relevant supervisory authorities earlier this year.

THE GENERALI GROUP

Generali is one of the largest global insurance and asset management providers. Established in 1831, it is present in 50 countries in the world, with a total premium income of more than € 66 billion in 2018. With nearly 71,000 employees serving 61 million customers, the Group has a leading position in Europe and a growing presence in Asia and Latin America. Generali’s ambition is to be the lifetime partner to its customers, offering innovative and personalized solutions thanks to an unmatched distribution network. In Austria, Central and Eastern Europe and Russia the Group operates through its Austria, CEE & Russia Regional Office (Prague) in 13 countries.
Generali Investments has EUR 488 billion in assets under management globally, and EUR 20 billion in assets under management in the CEE countries, which makes it one of the largest asset management companies in the CEE region.

After more than a quarter of a century in business, KD Funds is now joining the international Generali Group. Founded in 1831, Generali is an independent international financial group with a presence in over 50 countries across the world and employing more than 71,000 people. In 2017, Generali collected EUR 68 billion in insurance premiums and had EUR 487 billion of assets under management. According to the Fortune Global 500 report, Generali is ranked one of the world’s 60 largest companies, based on sales, profit, assets and market value. Generali Investments CEE, the largest asset management company in Central and Eastern Europe, managing EUR nearly 17 billion of assets, is also a member of the Group.

Luka Podlogar, President of the Management Board of KD Funds, comments on this significant milestone: »Apart from being one of the leading global insurers, Generali is also one of the largest European asset managers. Becoming part of the Generali Investments family will strengthen KD Funds’ ability to implement its growth strategy in South Eastern Europe. Furthermore, it will enable the company to broaden its products and investor base, as well as enable its employee’s additional development opportunities. We have an excellent team; we offer advanced and modern financial products that are constantly adapted to the financial needs of the market and our investors. Generali’s long term tradition and knowledge will help in further product upgrading. Our excellent and experienced team, in which we trust, remains the same. We are proud to become part of an international team with a winning mind-set. Exceptional opportunities are in front of us and I am convinced that we will use them for the benefit of our investors.”

Even during the economic cooling-off period and the slowed global growth of the economy, KD Funds has maintained professionalism and excellence in managing the assets of its investors. Three of our funds received a maximum of 5 or 4 stars, which means they rank among the top 10% of funds in each category (in the case of 5 Morningstar stars) or the next 22.5% of funds (in the case of 4 Morningstar stars). On 31 December 2018, the holders of 5 or 4 Morningstar stars are:

KD First Selection, 5 stars in the Flexible Allocation – Global category, 3-year period, ranking 113th among 1,851 funds of the same category, and 5-year period, ranking 17th among 1,331 funds.
KD Bond, 5 stars in the EUR Diversified Bond category, 3-year period, ranking 59th among 1,163 funds of the same category, and 5-year period, ranking 45th among 1,042 funds.
KD Vitality, 4 stars in the Global Large-Cap Blend Equity category.

Based on the rating of all funds and the relative number of funds within each category, Morningstar has set up an informal ranking of management companies, with KD Funds occupying the 280th place out of 3,128 management companies, thus ranking among the top 9% of the management companies in the world.

Morningstar, an independent and highly acclaimed rating agency based in the US, has been rating funds across the world since 1985. Morningstar rates funds from one to five stars based on how well they have performed (after adjusting for risk) in comparison to similar funds. Within each Morningstar Category, the top 10% of funds receive five stars, the next 22.5% four stars, the middle 35% three stars, the next 22.5% two stars, and the bottom 10% receive one star. Funds are rated for up to three time periods –three-, five-, and 10 years –and these ratings are combined to produce an overall rating. Funds with less than three years of history are not rated. Ratings are objective, based entirely on a mathematical evaluation of past performance. They are a useful tool for identifying funds worthy of further research, but should not be considered buy or sell recommendations.

© 2018 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

KD Funds has been supporting projects promoting innovative and development-oriented companies aspiring for excellence and long-term success for a number of years. KD Funds itself is a company whose DNA includes similar values – excellence, long-term focus, passion, winning and team spirit.

“Whilst small and medium-sized companies are the engine of every economy, they are quite often misunderstood. Most of the Slovenian SMEs we assess to be the companies of the future come from the manufacturing, technological and health sectors. They have good human resources, development-oriented ideas and a growth attitude but lack proper equity financing. They tell us that banks are not necessarily their long-term partners in every development phase, which became clear in the recent crisis. This is where we see our potential as well as the mission of our industry,” says Luka Podlogar, the President of the Management Board of KD Funds.

On the basis of a list of companies prepared by the project partner, the Agency of the Republic of Slovenia for Public Legal Records and Related Services (AJPES), the Delo editorial team short-listed 115 companies and selected ten nominees – companies that are innovative, export and development oriented, with at least EUR 3 million of annual revenues, a minimum of five employees and an added value per employee of at least EUR 35,000. At the same time, they are aware that people are of key importance for their success.

The companies nominated for this prestigious award – Pipistrel, Polycom Škofja Loka, Solis Straža, D. Labs, Vasco, Acies Bio, Labena, Mineralka, Mi elektronika and Resalta – are presented on the www.delo.si/delove-podjetniske-zvezde website, where readers can vote for their favourite nominee.

The Delo Business Star 2018 will be announced at the big gala event to take place on 8 November at Brdo pri Kranju. This will be one of the ten SMEs chosen by the Delo editorial team and the professional jury, including Luka Podlogar, the President of the Management Board. On the same day, a seminar hub ‘Business – the Story of Human Capital’ will be organised for the first time as part of the Delo Business Stars project, connecting topics on the significance of human capital, the meaning and objectives of entrepreneurship, and understanding and introducing new business models required by the 4th Industrial Revolution. Luka Podlogar, the President of the Management Board, and his guests will be speaking about how to manage a company’s growth phase.

The new fund will leverage the unique combination of Peakside’s real estate market knowledge coupled with KD Funds’ global expertise and experience in managing institutional real estate investments offered by the two firms joining forces.

To date, the Fund has raised commitments from regional institutional investors giving it a buyingpower in excess of €50m. Investors are attracted to the opportunities offered by the region which is currently delivering economic growth well in excess of the EU average whilst near-term prospects are expected to benefit from the yield gap relative to other European real estate markets.

The Fund has already made its first acquisition, with the purchase of the Tivoli Center, an office building in Ljubljana for €13m, reflecting a net initial yield well in excess of 8%. The Class A property located in prime downtown Ljubljana provides a Gross Lettable Area (GLA) of around 8,000 sqm across two connected buildings. 97% of the space is occupied by long-term tenants with strong covenants. Current tenants include international law firms, as well as a diversity of various successful SME companies. The property offers excellent transport connections including good access to public transport links.

Luka Podlogar, the President of the Management Board of KD Funds, said: “We are pleased to have closed the first acquisition of a commercial real estate asset for our new real estate fund, proving ourselves as the pioneers of development in the real estate fund sector in Slovenia, too. By way of this venture, we are fulfilling the KD Funds’ strategy in practice, namely to expand our product range of successfully managed funds for retail investors, by adding alternative investment funds for institutions.”

Stefan Aumann, Managing Partner and Founder of Peakside Capital added: “The acquisition of Tivoli Center is an excellent start for the Adriatic Value Fund. We are very happy to have acquired a prominent building that is in demand from occupiers and is located in a prime location within the growing Ljubljana office market. This is a stepping stone in establishing a larger portfolio in the region that will offer attractive returns to the Fund’s investors.”

KD Adriatic Value Fund, Special Investment Fund, is an alternative investment fund managed by KD Funds, with Peakside Capital acting as investment advisor. Its investment objective is to generate returns for investors from rental income and capital growth through investments in real estate in Slovenia, Croatia and Serbia, with a special focus on office and retail properties. The three target countries represent a region with a relatively undeveloped real estate sector and attractive returns, whilst the long-term success of the fund is further supported by strong economic growth.

Notes

Founded in 1994, KD Funds is one of the largest and oldest asset managers in South East Europe. It manages around EUR 800 million in 34 funds and 13 investment mandates (together with its subsidiaries) across the SEE region, including the oldest mutual funds in Slovenia and Croatia.

Peakside Capital was founded in 2010 as a spin-off from the Merrill Lynch investment bank and currently employs ca. 30 people. It is mainly active in Germany and Eastern European countries, managing funds and asset management mandates. It currently has more than EUR 1 billion of gross assets under management.