SIF net assets down 44 percent in 2008

The net assets of SIFs declined 44.4 percent in this year’s first 11 months, according to reports sent by these companies to the Bucharest Stock Exchange (BVB).

The depreciation of SIF assets was only half of that of their own financial shares, and far below that of the markets in which the companies invest. The BET-FI index of the five SIFs plunged 81 percent by the end of November 2008, while the BET-C index (of all shares listed on BVB’s main market, excepting SIFs) dropped 67 percent, and the RASDAQ-C index (of shares on the RASDAQ electronic market) lost 53 percent. The most valuable bank shares (those of Banca Comerciala Romana) slowed the depreciation of SIF assets, because these are estimated based on a model which disregards the dramatic levels of pessimism, which have caused the sharp declines registered on the stock exchange in 2008. SIF Moldova was subject to the biggest drop in the value of assets in this year’s first 11 months, of 46.9 percent, down to RON 0.95 bln (€312 bln), while SIF Muntenia registered the lowest losses, of 38.6 percent, down to RON 1.33 bln (€352 bln).

During January-November, the SIFs registered €117 million worth of net profit, slightly lower year-on-year.