Second most widely held share on Montenegroberza.

Number of Eurofond shareholders, the majority of which are Montenegrin retail investors.

Eurofond’s share price has fallen dramatically during the past two years.

Value of Eurofond’s portfolio at year-end 2010. (source: KHOV)

Eurofond’s market value is a fraction of the value of its assets, indicating a complete lack of confidence in Euroinvest’s management ability.

Management fees paid out to Euroinvest by Eurofond for the period 2003 – 2010

It is clear that Eurofond in not managed in the interests of its shareholders. This is illustrated not only by the wide margin between the fund’s net asset and market values, but in the fact that Euroinvest has extracted a multiple of Eurofond’s current market value just in fees over the past seven years.

It’s baffling that Euroinvest should be so well remunerated for their mismanagement. Unfortunately, this has only been possible due to regulation that has put the interests of fund managers ahead of those of of shareholders.

The Network

Cost of Elektrogrupa Jajce DD "investment" in Bosnia and Herzegovina.

Cost of land that Eurofond purchased from HP Fjord AD in 2009. HP Fjord AD is controlled by Alpha Invest, whose founders are connected to both Euroinvest and Eurofond.

Cost of land purchased from individuals connected to Eurofond ishareholder, and a shareholder of Euroinvest.

It is apparent that the majority of Eurofond’s "investment" activities during 2009 consist of highly irregular transactions in B&H, and purchases of land from “connected persons”. Despite many complaints, the Montenegrin KHOV (SEC) has not reacted in line with securities law or its own authority.