The combined assets of the 25 Investment Companies listed on the CSE increased 7.5% during the first quarter to CYP 223.46 mln from CYP 207.77 mln at the end of December, but was still short of the CYP 230 mln at the end of March last year, according to a survey carried out by the Financial Mirror.
The return of the Investment Companies matched the CSE performance, since their combined net asset values (NAV) increased by 17.45% in the first quarter ending March 31, 2005, compared with the positive performance recorded by the CSE GENX, up 17.06% during the first quarter from 72.55 to 84.93 points.
The performance returns may be slightly distorted due the fact that five companies failed to file their first quarter returns by the deadline of end of April. The companies that failed to file their portfolio returns are Aiantas, Regallia, Harvest, Ischis, all of which were until recently under the management of Suphire, which is in trouble over the fund shortfall in the EAC Pension Fund as well as Knossos.
BEST & WORST
Among the major funds, with assets in excess of CYP 10 mln, Dodoni Investments (DOD) was the best performer for the second successive quarter, reporting the best NAV gain, up 14.5%, followed by Interfund Investments (INF), with a 12.8% positive performance.
Demetra Investments (DEM), the largest fund in terms of assets increased its NAV by 6.8% in the first quarter.
Triena Capital (TCAP), managed by SFS was the best performer among all the funds, lifting its NAV by 21.6%, while among the smaller funds, Leda Investments (LEDA), also managed by SFS, boosted its NAV by 34%, which somehow corrected the 68% decline recorded in the fourth quarter of 2004.
Confine Investments (CONF), managed by CLR was the worst performer, as its NAV declined by 9.9% as a result of the firm writing off an investment in the non-listed European Car Park Ltd.
CASH HOLDINGS
The total cash holdings of all companies covered in the survey increased to CYP 55.25 mln from CYP 51.25 mln by the end of 2004, but the percentage of cash holdings to total assets was stable at 25%.
Demetra Investments (DEM) was the biggest contributor by maintaining CYP 37.5 mln or 42% of its total assets amounting to CYP 89.7 mln in cash.
Athena Investments (ATH), the second largest fund held CYP 8.3 mln or 32% of its assets in cash, followed by Interfund (INF), the third largest fund, which reduced its cash from CYP 4.5 mln to CYP 3.9 mln.
Apollo remained by far the biggest investor abroad, having placed CYP 5.8 mln of its total assets in foreign investments.
The survey conducted by the Financial Mirror found that the major funds continued to trade at a substantial discount compared to their NAV, with Demetra trading at a discount of 53%.
Exelixis, Regallia and Ischis were the exception to the rule for trading at a premium, but since they are seldom traded, the premium was seen only on paper and can best be described as a distortion.
