SIF 2 MOLDOVA Synthesis Report Q3 2012

Transcription

1 SIF 2 MOLDOVA Synthesis Report

2 SIF 2 - Type of the investment company SIF Moldova is a non-ucits, mainly focused on the Romanian market, operating as a closed fund with investments in shares, having a medium level of risk and temporary liquidity investments in fixed income instruments. Legal framework The activity SIF Moldova is a financial investment company of closed type, established in accordance with the provisions of Law no. 133 / 1996 for the conversion of the Private Property Funds into financial investment companies, classified in the non-ucits (non Undertakings for Collective Investment in Transferable Securities ) category, with a diversified investment policy, certified by the National Securities Commission (CNVM) with the Certificate no. 258 / Dec 14, Management of financial instruments as defined by CNVM regulations; Other related activities, in compliance with the legal regulations in force. According to the classification of activities in the national economy CAEN Rev. 2, the activities performed by SIF Moldova are included in the CAEN code 6499 Other financial services not elsewhere classified. Number of shares 519,089,588 (RON) (EURO) Nominal value Share Capital 51,908, ,383,543 Market cap 685,198, ,262,775 Total Assets 1,073,244, ,360,618 Net Assets Value 1,009,016, ,275,469 2

3 BOARD MEMBERS SIF 2 Asset depository and custody services Dumitru BONTAS, PhD Emilian BADICA Costel CEOCEA, PhD President & CEO Book-keeping of shares and shareholders: Depozitarul Central Valentin IONESCU Claudiu DOROS Vice President & Deputy CEO Financial auditor: Deloitte Audit SRL Elena ANDREI Iosefina MOROSAN, PhD 3

4 STRUCTURAL OBJECTIVES Investments Policy Statement for 2013, approved by the GMS of April 24, (updated - GMS of April 6, 2012) % of the total value of assets SIF 2 - Energy sector target 25% 13.2% 17.2% 20.5% 21.2 % Financial sector target 50% +/-10% 61.8% 52.4 % 44.3% 48.6 % Listed securities target 82% +/-5% 60.9% 82.0 % 77.2% 81.3 % Cash level target min 5% max 10% 4.7% 11.2 % 13.3% 8.8 % (non) - UCITS target (except FP) max5% 2.6% 2.0 % 3.1% 3,2 % Listed securities on international markets target max 15% 0.5% 21.2 % 24.8% 27.6 % Gold mining sector target max 5% 0.5% 1.2 % 1.4% 1.5 % 4

5 ASSET PORTFOLIO MANAGEMENT SIF 2 Indicator (RON) 2009 Q3 Q Total assets 1,199,561,718 1,171,218,043 1,122,330,219 1,154,223,764 1,230,690,965 1,130,221,653 1,073,244,420 Net assets 1,181,826,860 1,142,991,208 1,081,538,412 1,096,929,354 1,201,023,730 1,002,094,015 1,009,016,142 NAV/share Market price Discount (Market price /NAV /share -%) - 50% - 47% -61% -49% -44% -35% -32% % discount NAV/share Market price (RON) 2009 Q3 Q Listed shares Unlisted shares Monetary instruments Other assets Evolution of managed assets (% of total assets) Q3 Q

6 ASSET PORTFOLIO MANAGEMENT Financial Manufacturing Others TOP OF PORTFOLIO COMPANIES percentage >1% of total assets ERSTE BANK BRD FONDUL PROPRIETATEA BANCA TRANSILVANIA 9.61 OMV 2009 PETROM Q SNTGN TRANSGAZ Listed on the domestic market 2.97 Evolution of the share portfolio depending on BIOFARM Listed on foreign markets 2.37 trading market (thousand RON) Non-traded shares TESATORIILE REUNITE , ,142 Energy Pharmaceuticals 671, ,623 MECANICA CEAHLAU 1.53 TRANSELECTRICA 1,20 Exposure by sector (% of the total value of assets) ,455 Top of portfolio companies SIF 2 Percentage held in the shares capital Percentage > 1% % in the total value of the assets ERSTE BANK BRD FONDUL PROPRIETATEA BANCA TRANSILVANIA OMV PETROM SNTGN TRANSGAZ BIOFARM AEROSTAR MECANICA CEAHLAU TRANSELECTRICA TOTAL , , ,608 TOTAL , ,051 1,573 5,870 10,597 43,558 61, Q3 6

7 ASSET PORTFOLIO MANAGEMENT SIF 2 FIXED INCOME AND MONEY MARKET INSTRUMENTS PORTFOLIO 9,44 % of total assets The companies in this portfolio were selected based on the following criteria: Liquidity; Valuable patrimony not always reflected in market value or in the accounting value of the share for unlisted companies (implicitly in the registration value in the SIF Moldova net assets); Perspective for business; Dividend yield; For closed companies in the portfolio there are reserves for the increase of the price per share at the moment of SIF Moldova exit. (non) - UCITS SECURITIES PORTFOLIO 2,58% of total assets EQUITIES CORE PORTFOLIO (1) 80.42% of total assets EQUITIES PORTFOLIO (2) 3.58% of total assets The companies in this portfolio were selected based on the following criteria: Low liquidity in the case of listed companies; Market value does not reflect the value of the companies The patrimony may be valuable, without being reflected in all cases in the market value or in the accounting value of the share for unlisted companies (implicitly in the registration value in SIF Moldova's net assets); The business is profitable but the performance is low, which means that there is potential for improvement after the recovery from recession; Need restructuring and financing plans for development; There are reserves for the growth of the price / share at the moment of exit. EQUITIES PORTFOLIO (3) 1.25% of total assets The companies in this portfolio were selected based on the following criteria: Companies whose shares are not liquid (in the case of listed companies); Companies without special perspective; Patrimony without a close potential for valuation, requiring a discount for sale. 7

8 PREDICTABLE DIVIDEND POLICY Net profit evolution (mil. RON) SIF evolution of net profit (mil RON) Liquidities evolution at the end of the period (mil. RON ) , Gross dividend evolution (RON) Evolution of the dividend fund (mil. RON) Q3 Q gross dividend (RON) DIV Y 16.6% % 5.1% 6.4% Payout ratio (%) The weight of the dividend fund in liquidities (%) Position within the sector Based on the Corporate Governance Principles, the SIF Moldova Board of Directors proposed in the GMS of Apr 22, a predictable dividend policy that was approved by shareholders. Thus, absent any extraordinary market circumstances, SIF Moldova will ensure shareholders a dividend rate of return of at least 5% compared to the market price of the SIF2 share, if the price evolves to a level of 2 RON/share. Over this level, the dividend rate of return will be of at least 3%. The reference for the calculation is the average price of the SIF2 share for the last 90 trading days of the year for which the dividend is calculated. SIF / Banat Crisana Moldova Transilvania Muntenia Oltenia BVS (RON / share) Closing price (RON / share) Discount % - 50% -32% -44% -44% -44% Market cap (RON) 624,590, ,198, ,962, ,662, ,590,674 Net assets (RON) 1,243,780,152 1,009,016,142 1,089,185,654 1,043,238,473 1,470,053,287 Profit (RON) 97,929, ,199, ,880,391 67,751,906 53,269,819 8

9 RISK MANAGEMENT AND PORTFOLIO PERFORMANCE OPTIMIZATION SIF 2 Rate of return and risk of the SIF Moldova listed financial instruments portfolio - comparative 9 months /9 months 2012 CATEGORY OF INDICATORS Performance measurement Measurement of performance quality Risk measurement NAME OF INDICATOR Relevant portfolio SIF2 9 months (38 assets) 9 months 2012 (34 assets) BET C 9 months 2012 Alfa 0,24 (0,08) 0,02 Sharpe (12L) (1,35) 0,41 0,17 Excess MU (%) 2,05 2,79 5,33 Dy (%) 2,21 2,72 5,32 Skewness (0,79) 0,01 Kurtosis 5,98 0,52 Vol. (12L) 13,84% 22,01% 10,19% Beta 0,98 1,31 1,00 VaR (%/day) 3,05 3,58 2,84 Drawdown (maximum fall compared to the beginning of the year)% 26,80 13,51 Market value Sep 30, ,56 814,45 The data presented shows the following: - A beta higher than that of the reference index of the capital market on which the portfolio is traded, that allowed the achievement of a performance per unit of risk higher than the BET-C index in the first 9 months of 2012; - The portfolio level volatility in the first 9 months of 2012 increased compared to the similar period of the previous year on account of the increase of the EBS shares held in the portfolio, without influencing the market risk profile approved in the strategy for managing significant risks; - As a whole, from the perspective of the protection of the portfolio to market volatility, maximum potential daily losses are within very good limits, compared to the level of performance achieved (VaR 3,58% / day) Compared evolution SIF2 / BET-FI / NAV (Q3 /variations against the previous month) 24.9% SIF 2 BET-FI NAV/share -0.3% -2.4% -4.7% 18.8% 16.5% 19.7% 15.4% 13.9% 7.8% 13.6% 6.2% 4.9% 7.4% 2.8% 6.0% 1.0% 2.4% 1.6% 4.1% 2.3% 1.4% -1.1% -2.1% -1.5% -2.3% -1.1% -1.1% 0.7% oct.-11 nov.-11 dec.11 ian.-12 feb.-12 mar.-12 apr.-12 mai.-12 iun.-12 iul.-12 aug.-12 sep % -7.2% -7.5% -8.7% -8.7% -13.1% -17.7% 9

10 ACHIEVEMENT OF THE BOARD SIF 2- Increasing the portfolio performance Creating a diversified portfolio that would allow good rates of return and growing dividends, through active portfolio management; Maintaining a medium risk profile and a balanced approach of liquidities. Coherent investment strategies and policies for the medium and long term Multiannual strategies for 2013 period; Investment Policy Statement, reviewed annually depending on macro-economic context, market evolution as well as the means of achieving objectives, in the context of a continuous process to restructure SIF Moldova portfolio; Creating the conditions that would allow to benefit from the opportunity of investing in the companies that will be privatized by the Romanian Government: Transgaz, Romgaz, Hidroelectrica, Nuclearelectrica; Transparent investment policy, mainly in listed companies. Dividend distribution policy Predictable dividend policy; The dividend policy provides the possibility for each shareholder to take investment decision and to include the SIF2 share in the short / medium / long term investment portfolio; The constant growth of the dividend. Implementation of corporate governance principles in current activity Improved protection of shareholders rights; Setting transparent criteria for the procedure of electing the members of the Board of Directors and of the executive management; An increase in management performance was added by having new experinced members in the Board of Directors; the company executives have concluded the management contracts for the period of the current mandate The increase in the transparency of the management act through a sustained communication with shareholders / investors. Maintaining the objective regarding the changes in the Articles of Association in order to optimize the decision-making process. Maintaining the objective regarding the increase in the share capital, as an essential premise for the acceleration of the investment programs and the improve of the performance of SIF Moldova, reflected in the strengthening of the shareholders position and in their benefits. 10

11 HUMAN RESOURCE MANAGEMENT - STRATEGIC OBJECTIVE SIF 2- In the current mandate of the Board of Directors, a special attention was granted to the human resources in order to implement a complex process of restructuring and reorganization, in compliance with the economic environment / activity sector. The directions of action were: Reconfiguration / optimization of the organization chart and of the decision flows Organizing the activity by procedures, using an integrated computer system Evolution of the number of occupied positions before the current mandate of BD (2009) Dec-11 Jun-12 Sep-12 11

12 THE IMPACT OF THE RESTRUCTURING PROGRAM ON SALARY EXPENSES SIF % estimate decrease in salary costs % estimate decrease in salary costs The implementation of the reorganization and restructuring program, in acordance with the management of the operating costs The results recorded involve: - A decrease in staff, the number of positions reaching 46 (at the start of the restructuring process, there were 119 positions); - The dissolution this year of 5 departments and 5 representative offices, adding to the 6 departments and 4 representative offices dissolved in the previous modification of the organizational chart implying the dissolution of 19 management positions; Trasparent accounting policies In the reporting period, the average monthly percentage of management expenses represents 0,11% of the total value of assets, less than the management fees perceived by other investment fund management companies (0,20% - 0,45%). 12

13 RESPONSIBILITY PROFESSIONALISM INTELLIGENCE DIVERSITY OPTIMISM COURAGE SIF 2- Maintaining a medium risk profile associated with a balanced approach of the liquidity management. Increasing the value and the return on the assets under management and creating a "success story" of the company SIF Moldova on the stock market, so that SIF2 share to become a favorite security for the investors, with predictable benefits for them. Implementation of corporate governance principles in a procedural framework, to ensure that the decisions and the operations are in accordance with these principles Improving the decision-making and the operational processes, in terms of active application of the portfolio management