UDMR (Democratic Alliance of Hungarians in Romania) Senator Verestoy Attila, one of the richest politicians and one of the largest investors on the capital market has entered the mutual fund management sector, by establishing an asset management company.
Investica Asset Management, a company in which the senator owns 80%, was authorised by the National Securities Commission (CNVM) in midweek. The company''s share capital stands at 520,000 RON (150,000 euros) and its core business includes management of open and closed-end investment funds, as well as management of individual investment accounts. The other 20% of the company''s shares are controlled by four individuals, among whom are the company''s managers.
Investica officials say the company will at first focus on management of individual investment accounts and on launching closed-end investment funds. The latter provide the possibility to adopt more flexible placement strategies, as they are not subject to such strict regulations, and therefore can embrace riskier investment strategies, which generate higher yields. The managers have had the possibility to launch closed-end funds for only one year, with the number of such funds still low on the market.
According to CNVM data, Senator Verestoy owns more than 6% in the brokerage firm Eastern Securities, while his father, Verestoy L.
Attila owns 82%. The shareholders of the company include the Hungarian OTP Bank, with 4.33%. Prior to the incorporation of Investica, Eastern Securities had applied to the CNVM to withdraw Verestoy''s broker licence issued in the name of this company.
One of Investica''s managers is a former Eastern Securities broker, Leonard Visan, along with a former broker from Eteba, the brokerage company of Banca Romaneasca.
The known investments of the Senator on the Bucharest Stock Exchange are a significant stake in Rompetrol Rafinare acquired after the listing of this company in April 2004 and a 2% stake in drug producer Sicomed Bucharest, which the senator had announced he planned to sell as part of the tender offer made by the Czechs at Zentiva.
The UDMR senator did not comment on his decision to start an asset management business.
Asset management companies are becoming more alluring for investors, particularly because it does not take much money to establish one. A new company held by individual investors, Star Asset Management is due for launch next month, 66% of which is controlled by Georgeta Danila, wife of BCR chairman Nicolae Danila.
A former analyst of Broker Cluj, Nicolae Pascu launched along with several other partners, an investment management company, STK Financial, which set out to manage individual investment accounts at first.
Other management companies on the market that are largely held by individual investors are Globinvest and Target Asset Management (Cluj-Napoca).
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