Manager of the biggest closed-end fund: It's good we were able to survive the crisis
STK Emergent closed-end investment fund was hit from all sides
by the financial crisis: the 2008 Bourse collapse caught it with
high exposures on SIFs and RASDAQ-listed stock, while the real
estate market crunch made it postpone 50m euros' worth of
investments.
With assets under management worth 75.2m lei (18m euros), STK
Emergent is the biggest leu-denominated closed-end investment fund
on the domestic market.
In late 2010, almost half of its portfolio, namely 36.8m lei (8.6m
euros) was invested in listed stock. On the Bourse, the value of
the fund stands at 28.6m lei (6.7m euros), below the value of the
stock portfolio. The other portfolio half is represented by the
stake in STK Properties, which planned to start a real estate
project in 2008, which was halted, though, as a result of the
crisis.
"The collapse of the Bourse caught everybody by surprise. It's good
we were able to survive," said Nicolae Pascu, president of STK
financial, the fund's manager.
Pascu expects a strong Bourse rebound in 2011, counting on a 50%
increase in domestic stocks, which he considers to be way
undervalued at present, by yearend.