Assets of Unemployment Insurance Fund down by EEK 36 mln

Dutch 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.

 Continue reading

Advertisement

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.

Marge Tubalkain-Trellbbnatchararipaev.ee