SIF assets €283 million higher in July

SIF administrators are not concerned that stock exchange drops in August will affect upcoming results. July SIF assets were worth RON 10.96 billion (€3.47 billlion), 8.9 percent more than on June 30, and 51.6 percent higher than on December 31, according to a report of the National Union of Collective Placement Organisms (UNOPC).

Accumulation is primarily due to a rise of 11.9 percent of marketable shares (representing 77.5 percent of total assets). Short-term unmarketable shares (0.16 percent of assets) contributed with a 9.7 percent increase. Municipal bonds (0.03 percent of assets) brought growth of a mere 1.4 percent.

SIF performances were not affected by the chaos that followed in August, even though analysts issued warnings regarding problems on foreign markets as far back as July.

“We do not sell based on fear. We sold to make a profit, but did not sell a significant amount. We were more interested in restructuring our portfolio and move towards marketable shares with prospects of liquidity,” SIF Transilvania’s President, Mihai Fercala, told Business Standard.

SIF Muntenia registered the largest increase in net assets, for a third month in a row. Its assets increased by 13.3% in July, amounting to RON 2.22 billion (€703 million, with an increase of 12.4 percent). The assets of SIF Muntenia rose throughout 2007, up by 69.9 percent. “SIF Muntenia’s assets increased more than the assets of other SIFs because they started lower. Furthermore, packages we have for companies with real estate assets, such as Timpuri Noi, Romaero, or Prospectiuni appreciated singificantly,” explained Petre Pavel Szel, President of SIF Muntenia’s administrator SAI Muntenia.

Only three SIFs ended July with capitalization higher than net assets: SIF Transilvania - 18.9 percent over the net asset level, SIF Banat-Crisana - 17.1 percent, and SIF Moldova - 8.4 percent. A two percent capitalization kept SIF Muntenia and SIF Oltenia from reaching the level of net assets. The value of the five SIFs on the stock exchange amounts to RON 11.8 billion (€3.74 billion), with the accumulation level in July some 2.3 percent lower than in June.