Assets of Unemployment Insurance Fund down by EEK 36 mln
04.11.2008, 08:28Dutch asset management company Fortis
Investments Management has lost tens of millions by investing the assets of the
Estonian Unemployment Insurance Fund.
Äripäev writes that in nine month Fortis that manages 2.3 billion kroons in
EUIF assets lost 36 million kroons including 17 million in the third
quarter.
“During the quarter, the return on assets was affected by the deepening
crisis on the world financial markets. Aggressive sales lowered the value of any
even slightly risky assets while bond yields of industrially developed countries
fell and prices increased,” said EUIF in its third quarter report.
As of end of September, Fortis had invested half of the assets of EUIF in
short-term bonds with a maturity of between 0 and 3 months and a fifth of the
assets in instruments with a maturity of 7 to 10 years. account for more than 70
percent of the assets of EUIF. Most funds have been invested in Ireland, US and
Germany. Bonds
At the same time the 300-million-kroon portfolio that forms part of EUIF
assets, but is managed by the State Treasury earned a profit of over 6 million
kroons in the third quarter. The fund made a profit also in managing its own
liquid assets that amount to around 150 million kroons.
Popular Balkan real estate fund loses half its value
BREF, a real estate
fund for investing in Balkan property that is popular among Estonians, has lost
more than half of its value in the last five years.
Äripäev writes that Estonians hold two thirds of the shares of the fund that
was created three years ago and is also listed on the Sofia stock exchange.
While in the mid-2007 the share cost 2.5 times of its launch value, it has
now lost more than half of it.
Kalojan Ninov, leading partner of BREF, has said that Estonians account for
up to 70 percent of the investors in the fund, especially banks.
Ninov said that the big benefit of the fund is that the profit earned from
the investment is not subject to income tax and it is very easy to enter or exit
the fund. “And we pay at least 90 percent of the profit out in dividends,” he
added.
Vahur Madisson, fund manager of SEB, said that BREF shares are owned by
second and third pillar pension funds in the total amount of 10.5 million
kroons.
According to the Sofia bourse, the market value of the fund is 430 million
lev. The fund manager raised 35 million euros in the issue and invested it in
properties in Sofia and outside the capital.