Demetra heads into new investment fields

Demetra Investments Public Co. Ltd. unveiled its new strategic investment plan, which envisages a gradual shift away from equity investments into property, major public works and steady income generating investments.

Demetra Chairman Stavros Evagorou said the island’s largest investment fund booked CYP 14.3 mln in net profits for 2005 following the 50% increase in local equity prices.

“The good thing is that this year we have seen a very satisfactory increase in local equity prices, which bodes well for year end results,” said Evagorou.

Unfortunately for the more than 165.000 shareholders of Demetra, there is no prospect of a dividend since the company first needs to recover accumulated losses totaling CYP 106 mln before it can distribute profits, something that is not on the agenda, at least now.

Evagorou however, promised that the Company would spare no effort to collect overdue balances due to it from dubious investments made by officials who have since left the company.

Evagorou also mentioned that Demetra stopped its fund management agreement with Lefkoniko, largely blamed for many of its past woes and now has an agreement with the Cooperative Central Bank.

Board member Vangelis Georghiou who presented the company’s strategic investment plan, revealed that according to the new objectives set by the Board, equity investments in Cyprus and abroad now making up 51% of the portfolio will be reduced to 35% by 2008, bond investments increased from the current 7.3% to 15%, while new investments made into public works and property & real estate 15% and 20% each. Cash holdings now at 33% of the portfolio will be steadily cut to 14%.