Portfolio

SIF BANAT-CRISANA’S investment policy is focused on providing increasing return and a sustainable medium and long-term growth of our portfolio value and an adequate risk management.

Investments are made in the asset classes and holding limits regulated by the Romanian National Securities Commission (for more information please visit: www.cnvmr.ro, Legislation section).

Investment selection is based on in-depth valuation of the investment opportunities both on the capital market and on the money market. The selection process implies extensive research on micro and macroeconomical level and a rigorous analysis of the return and risks of prospective investments.

Over time SIF Banat-Crisana has developed proprietary models of investment analysis and management resulting in efficient instruments available to analysts and management in the decision-making process and portfolio management. These models ensure a rigorous monitoring and efficient management, aiming at constantly improving portfolio structure while complying with the company’s overall strategy.

THE PORTFOLIO MANAGEMENT complies with the legal provisions, namely conforming to the prudential criteria within the diversified investment policy promoted by SIF Banat-Crişana’s management.

The portfolio is structured in 4 sub-portfolios each being run by a manager assisted by three or four analysts. These teams dedicate significant efforts to investment selection, analysis and monitoring (including regular company visits). The portfolio managers are located in Arad, each of them being responsible for the selection of stocks acquired or sold in their portfolio, submitting investment-divestment proposals to the Investment Committee. The Committee draws up proposals regarding the investment strategy that are reviewed and approved by the Board of Directors.

The stock portfolio management is focused on the medium and long-term appreciation of the invested capital and income while keeping an optimum balance between the portfolio return and the associated risk. The selection criteria aim at achieving returns equal or superior to the market return, focusing in particular on issuers that:

• operate in dynamic economic sectors with strong growth perspectives;
• are listed on a stock exchange and have high liquidity
• have a foreseeable dividend policy.

Stock Portfolio Structure   
 

Investments in fixed income financial instruments, (T-bills, corporate and municipal bonds, bank deposits or certificates of deposit) ensure a diminished investment risk of the portfolio of financial instruments. Although the potential yield from stock holdings (dividends and capital gains) could be attractive within a certain time frame, there are unquestionable advantages from having fixed income financial instruments in the portfolio. These reside in the steady and foreseeable flow of income ensured by the fixed interest rate or coupons and a reduced level risk.

The risk-return concept applied for the portfolio of fixed income instruments represents the selection criterion that takes into consideration: the return level from bonds and monetary investments, the correlation between the maturity of fixed income instruments with company’s necessary liquidity, the bond issuers capacity to reimburse the loan.