CBL Asset Management, a subsidiary of Citadele Bank, is enhancing its investment fund offering by placing greater focus on the Baltic and Central European bond markets and by launching a new equity index fund. The changes aim to give investors more choice in selecting investments that match their financial goals and to tap into the long-term growth potential of different markets.
“By enhancing our investment fund offering, we want to give investors more opportunities to invest in both regional and international financial markets. We see attractive long-term investment opportunities in the Baltic and Central European bond markets, so we are revising the fund’s strategy to focus more on these regions. At the same time, with the launch of a new equity index fund, we want to broaden the range of solutions available to investors and make it easier to build a diversified investment portfolio in line with each investor’s financial goals and risk tolerance,” says Kārlis Purgailis, Chairman of the Management Board of CBL Asset Management, a subsidiary of Citadele Bank.
The existing investment fund “CBL Eastern European Bond Fund” will now operate under the name “CBL Baltic & New Europe Bond Fund”. Along with the name change, the fund’s investment strategy will also be revised, with greater emphasis on the bond markets of the Baltic States and Central Europe.
This means that the fund’s investments will be more concentrated in debt securities, or bonds, issued by companies in these regions. When investing in bonds, an investor effectively lends money to the issuer and in return expects interest payments and repayment of the invested principal in accordance with the terms of the bond. Such investments make it possible to take part in the development of the region’s capital market, while also taking on the risks associated with bonds.
New equity index sub-fund
At the same time, CBL Asset Management is also expanding its equity investment offering. Through amendments to the constitutional documents of “CBL Opportunities Funds”, a new sub-fund, “CBL Equity Index Fund”, is to be established.
The new sub-fund will add to the choices available to investors in the equity market. The index fund approach involves investing in line with the composition of a specific market index, giving investors access to multiple companies through a single fund.
The sub-fund aims to achieve long-term capital growth by investing in global equity markets. Investments are made mainly in index funds and exchange-traded funds (ETFs) that track the performance of equity market indices.
The sub-fund is managed using a passive investment approach: regardless of market conditions, the share of equity investments is kept close to 100% of the sub-fund’s assets. This approach helps keep the sub-fund’s management costs low.
CBL Asset Management will begin distributing its new sub-fund, “CBL Equity Index Fund”, on 2 November 2026.
Changes to protect investors’ interests
In addition to enhancing the fund offering, new liquidity management tools are being introduced in line with the requirements of European Union legislation. They will help manage situations more effectively when investor demand to buy or redeem fund units changes significantly, thereby reducing risks and protecting investors’ interests.
The amendments to the funds’ constitutional documents were registered by Latvijas Banka on 16 October and will take effect on 30 October 2026. The changes have also been made in accordance with the requirements of EU Directive 2024/927.
More information on the changes to the fund documents is available on the CBL Asset Management website.