Great offers for investors in the "Proprietatea Fund"

Ziarul BURSA #English Section / 28 ianuarie 2011

Great offers for investors in the "Proprietatea Fund"

SAPOU

Investors interested in the evolution of the price of the Proprietatea Fund", before its listing on the Bucharest Stock Exchange, had several products available starting last year. A few weeks prior to the first trade on the BSE, brokers cut their fees to attract as many customers as possible.

Warrants in Vienna

At the end of December 2009, brokerage firm "Wood&Company" of the Czech Republic launched a derivative product (warrant) with the shares of the Fund as underlying asset, traded on the OTC of the Vienna Stock Exchange. One warrant had 500,000 shares of the Proprietatea Fund as underlying asset.

The warrant worked as a call option, meaning that upon expiration, November 30, 2010, the seller, namely Wood&Company, pledged to sell the shares of the Fund at a price in Euros of 0.3/lei share. The officials of "Wood& Company" were reticent in their statement, saying only that the product launched in Vienna was aimed at a specific category of investors.

Warrants in Frankfurt

A few months away, the Italians of "Unicredit" launched derivatives which had the shares of the Fund as underlying asset, on the Frankfurt Stock Exchange.

A warrant equals 1000 shares of the Proprietatea Fund, and will expire on September 26th, 2011.

iFond Financial Romania

On September 30, 2010, iFond Financial Romania, managed by Intercapital Invest, had 48.06% of its assets invested in shares of the Proprietatea Fund. According to the fund"s prospectus, 21.24% of its assets were placed in the shares of the five Financial Investment companies, (SIF), and 17.30% of those assets was placed in the shares of the two exchange operators, BSE and Sibex.

In august 2010, iFond Financial (IFR) raised over 8 million lei from investors. The shares of the Fund, listed on the Bucharest Stock Exchange, reached 247.2 lei/ share on Friday. The shares of the Fund have an IFR of 200 lei.

Margin trading with "Tradeville"

Brokerage firm "Tradeville" offers its clients the possibility of trading the stock of the Proprietatea Fund on margin, starting on the first day of the listing, through the SMART service.

Proprietatea Fund futures on Sibex

The Sibiu Exchange will launch derivatives based on the shares of the Proprietatea Fund after their listing on the spot market of the Bucharest Stock Exchange.

BCR offers lower commissions to customers looking to invest in shares of the Proprietatea Fund

The Romanian Commercial Bank (BCR) offers all the owners of shares of the Proprietatea Fund, as well as those who wish to invest in these shares, a 50% cut of the trading on the Bucharest Stock Exchange, to just 0.25%, a minimum of 10 lei/share. The fee of 0.25% includes all the fees and commissions of the BSE, the Central Depository, and the CNVM.

Rebates on the trading fees and free assistance

Several brokerage firms have created dedicated sections of their websites to the listing of the Proprietatea Fund. In a bid to attract customers, they are offering free assistance and sometimes, discounted commissions.

"Prime Transaction" announced that until June 2011, its fees will be lowered by half for owners of shares of the Proprietatea Fund who open an investment account assisted by a broker.

In order to begin trading on the very first day an investor must go through the following steps:

Sellers of shares of the Proprietatea Fund:

- sign a contract with a brokerage firm and open a trading account

- present the portfolio statement which mentions the number of shares held

- sign the request to transfer the shares from the Ist section of the Central Depository to the trading account opened with the brokerage firm

- place the orders to sell by phone or online

Buyers of shares of the Proprietatea Fund:

- sign a contract with a brokerage firm

- open a trading account

- place the desired amount in the trading account

- place the order to buy by phone or online

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