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The monetary market is very appealing currently due to the high interest rates

Interview with Costel CEOCEA, President Director General SIF Moldova.

The General Shareholders Meeting is scheduled for April 24, 2009. There are many items on the agenda. What are those ones that you regard as being most important for SIF Moldova?

We regard all the items on the agenda of the General Shareholders Meeting from April 24/25, 2009 as being equally important. An overview of the company activity in 2008, on the financial results, profit distribution, as well as the budgetary estimations for 2009 are all legal information and debate obligations for shareholders. The agenda includes also the election of a new Administration Board since the current Administration Board mandate reaches its 4-year term. The candidates registered meet the requirements for undertaking the office of an administrator of a financial services company. The company board has shown intense preoccupation as to providing the shareholders facile voting modalities. Thus, they are invited to participate directly in GSM works, and in case they cannot, they can exert their voting right by means of the voting bulletins, by mail, or by power of attorney particularly made available by the Administration Board. The shareholders may also cast their votes online, through the company web page: www.sifm.ro

How was 2008 for you? We noted that the value of the dividends is to be set during the general shareholders meeting. What are the factors inducing the growth of the nominal portfolio value as against 2007?

In spite of the fact that the strong decline in 2008 experienced on the capital market affected mainly the value of the net assets, the company registered a net profit amounting to RON 93.93 M in 2008, by 43.25 per cent higher than in 2007. Compared to the amounts foreseen in the revenues and expenditure budget for 2008, when the profit was targeted at RON 75 M, the actual net profit was by 25.24 per cent higher. Out of the net profit made, for those shareholders who had confidence in the company, the Administration Board proposed payment of dividends worth RON 23.36 M, which stands for 0.045 RON/share, a level that is closed to the one registered last year and significant compared to other financial investment companies. By paying the dividends, SIF Moldova wants to remain appealing among the issuers at Bucharest Stock Exchange (BVB), this measure being adopted in parallel with maintaining the cash flow needed for investments and operations at an optimal level. The company expresses confidence in the Romanian capital market. SIF Moldova has steadily invested in the issuers listed at BVB and it has underwritten the capital raises of many companies included in its portfolio. The investment effort, in nominal terms, was by 9.41 per cent higher in 2008 than in 2007. Although the shares at BVB depreciated significantly, following the financial crisis, national and international, we expect a rather significant change of the trend.

2009 appears to be difficult for the economy. What are your expectations for SIF Moldova within this time period?

2009, in economic and financial terms, is characterized by uncertainty. We believe that the company economical and financial situation will be proper. The amounts to be received from the core issuers in our portfolio (BCR, BRD, Banca Transilvania) are significantly higher than in 2008. Regarding investments, our opinion is that the monetary market is currently very appealing due to the high interests and we intend to invest mainly into this market, at least on short term. We shall continue restructuring the historic portfolio by capitalizing some assets owned, an activity that has been constant in fact, which has resulted in available cash flow. In addition, we included a cut in the operational expenditures by 16 per cent compared to 2008 (these cuts are largely due to the reduction in the expenditures for staff and administrators). There are also other aspects that the company is currently analyzing. They will be included in the regular and current reporting to the shareholders of SIF Moldova.

How would you comment the negative evolution of BVB?

The internal and international stock exchange context has had a strong influence on VUAN indicator (unit value of the net asset), leading to cascade effects as to the price of shares in the foreign markets, those on BVB platform and implicitly the asset values. The current context of the financial crisis has resulted in certain financial instrument being ceased from trading or being traded at very low levels. The order issued by National Commission of Securities (CNVM) no. 11/11.03.2009 addressing the modification and completion of Order no. 75/2005 related to the approval of the accounting regulations compliant with the EC Directive IV applicable to the entities authorized, regulated and monitored by CNVM, has enabled the option to have the choice as the value adjustments calculated for annual inventory to influence directly the own capital. SIF Moldova chose to apply the above mentioned provisions, including the acknowledgement of the equity capital raise/decrease made by the issuers where SIF Moldova own capital participations directly into their own capitals. But as mentioned previously, we expect, on medium and long term, the external market to calm and therefore the national one to follow the trend, and based on the economic fundaments and anticipations, long term investors to start to be active again and the value of the assets to return to their real value, the value of the net unit asset respectively. Usually, the stock exchange recovery precedes the one from the real economy. The same was valid when the stock exchange indicated an accurate anticipation of the economic crisis and it had depreciations long before this was actually experienced in the real life.

How does the current crisis affect the confidence of the investors - shareholders?

The investors - shareholders most affected were those who invested on short term and the speculators. Those who envisage investing on a longer time span, they generally invest gradually, in order to reduce risk. The gap between VUAN (RON 1.6191) and the trading price (RON 0.2730) at the end of February 2009 was a large one, 83.14 per cent namely, which means that the shares are very appealing. One SIF Moldova share is currently quoted at around RON 0.4. The analysis of the developments in the past activities and the future prospects make us confident into the fact that we shall be able to maintain a highly performing management, which we hope it will consolidate the confidence of investors into SIF Moldova.

 

Sursa: http://www.nineoclock.ro

Tags: profit financial board value bvb capital market company currently appealing being sif moldova those shareholders brd bcr

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