AFTER THE THIRD QUARTER, Banca Transilvania accounts for the bulk of the assets of SIF Banat Crişana

The stake of 4.52% of Banca Transilvania (TLV) had the largest weight in the net assets of SIF1 Banat Crişana, at the end of Q3, placing it higher than the 2.41% stake in BRD, which combined 9.39% of the net asset, according to the 9-month statement published by the company yesterday.

At the end of the first quarter, the stake in BRD accounted for 9.49% of the net assets, whereas the one in TLV represented 10.69% of the net assets of SIF1.

"SIF1 has not made any notable divestments in the third quarter, meaning that the financial result is almost similar to what it was at the end of the second quarter", said Simion Tihon, broker at "Prime Transaction". He notes that on September 30, 2014, Banca Transilvania accounted for 12.94% of the net assets of SIF1, "as a result of the free stock received following the bank's capital increase".

In the third quarter, SIF1 sold 8.04 million lei worth of "Biofarm" stock, as part of the Biofarm buyback offer. This was the most important transaction that SIF1 made on the domestic market, where the trades reached 8.59 million lei, according to the nine-month financial statement.

SIF1 reports that it made 0.87 million lei from the procedure of distribution of the company's equity to shareholders, through the payment of 0.05 lei/share, performed by "Fondul Proprietatea".

At the end of Q3 2014, the company stock market investments worth 15.2 million lei, of which 99.98% was invested in short term securities, according to the representatives of SIF1, who state that the most important acquisition, in terms of value, was the one represented by shares in CNTEE Transelectrica (TEL), worth 3.65 million lei. The portfolio of shares listed on foreign markets included 10 issuers at the end of September 30, 2014, and the transactions outside the country amounted to 171,038 Euros in the third quarter (0.75 million lei).

The net asset value (NAV) of SIF Banat-Crişana was 1,556.39 million lei, at the end of Q3 2014, down 4.46% over the first semester of 2014 and down 2.53% compared to December 31st, 2013, according to the SIF1 report.

The value of the listed stocks has decreased 3.97% compared to the end of the first semester of 2014, and their weight in the assets has increased during this period to 67.03%, from 65.98%. The unlisted shares category has increased 5.77% in value, due to the purchases made and the improved financial results reported by issuers listed in this class, according to the quoted report.

At the end of Q3, SIF1 owned 4.9% of SIF2 Moldova, 4.9% of SIF4 Muntenia and 1.99% of SIF5 Oltenia.

On Friday, the group of shareholders made up of Dragoş Bîlteanu, the head of SIF Banat-Crişana (SIF1), and others, together with SIF Muntenia (SIF4), SIF Banat-Crişana, Semrom Muntenia (SEOM), Biofarm (BIO) and Avicola Bucureşti (AVBW) reported that it has pared down its stake in SIF Moldova (SIF2) to 5%, from 10.41% in June, at the request of the Financial Oversight Authority which had determined that the members of the group were acting in concert. However, the shareholders did not say which member of the group sold their shares in SIF2.

SIF1 also holds warrants on SIF4 shares, worth 15.4 million lei.

• Romania accounts for 71% of the stock portfolio

Out of the total portfolio of SIF1, Romanian holdings accounted for 71%. SIF1 had investments in 11 foreign issuers, specifically in Austria, (1 issuer - Erste Bank), Cyprus (1 issuer - SIF Imobiliare, traded on the BSE) Germany (2), Finland (1), France (1), Italy (1), Luxemburg (1), Holland (3).

Half of the stock portfolio, at the end of September, was represented by the financial-banking sector, where SIF1 had holdings in 13 issuers, followed by trade/real estate, with a weight of 14.36% (stakes in 23 companies), and by tourism and public catering, with a weight of 9.90% (holdings in 9 issuers).

The portfolio of fixed-income securities owned by SIF Banat-Crişana on September 30 2014 represented 6.59% of the total assets under management, of which bank deposits in lei held the largest weight, which amounted to 42.06 million lei.

SIF1 Banat-Crişana says that the volume of shares and other securities owned in the form of financial assets, amounting to 946.2 million lei, represent 76.9% of the total assets, down compared to December 31st, 2013 due to the sale of shares (BRD, Erste Bank etc). "Some of the cash proceeds have been directed towards short-term financial investments (shares and mutual funds)", according to the quoted report, which states: "The total volume of the revenues achieved on September 30, 2014, was 248.7 million lei, 3.6 times bigger compared to September 30th, 2013, as a result of the significant increase in the revenues from liquidated financial investments.

The total expenses booked on September 30th, 2014, (69.1 million lei) have increased 135.4% YOY, due to the increase in divestment expenses, which is correlated with divestment revenues".

The net profit on September 30, 2014 amounted to 151.4 million lei, up from 36.18 million lei on September 30, 2013, due to a significant profit from stock sales.