The total assets of Cyprus listed investment companies fell by a whopping EUR 240.33 mln by the end of September compared to a year before, as the 60% decline in equity prices so far this year has taken a heavy toll on the listed companies.
According to a Financial Mirror survey, the 17 listed investment companies quoted on the Cyprus Stock Exchange reported total assets of EUR 528.01 mln as at end of September, compared to EUR 768.35 mln a year ago, resulting in a loss of EUR 240.33 mln.
PATHETIC
Interfund (INF) reported the worst deterioration among the major funds as its total assets nearly halved by EUR 45.9 mln to EUR 55 mln from EUR 101 mln in September 2007. The net asset value (NAV) of Interfund also registered the largest decline to EUR 0.8115 from 1.7835 for a 54.5% decline. The Financial Mirror survey does not take into account dividend payments.
After losing its second position in terms of rank by assets, Interfund is now dangerously close to slipping to fourth position as Cytrustees reported total assets of EUR 45.7 mln, down EUR 34.5 mln y/y.
Demetra Investments, the largest fund in Cyprus had a relatively better performance since its total assets declined by EUR 62.17 mln to EUR 213.98 mln by 9M08 from EUR 276.09 mln in 9M07.
Athena Investments, controlled by the Hellenic Bank Group, maintained its second ranking reporting total assets of EUR 57.6 mln by 9M08, down EUR 27.4 mln y/y.
DISCOUNT WIDENS
The discount at which most investment companies trade relative to their NAV widened to a record 50-70% as the plunge in equities continued.
Demetra is trading at a 72% discount to its NAV, Athena 62%, Jupiter 68% and Dodoni 55% to name a few.
The CSE Main/Parallel Index, which had declined by 56.8% since the start of the year, saw its steady downmove continue by the end of September and by October 20, was down 64.75%, according to Financial Mirror estimates.
This means further losses for the investment companies, thus explaining the widening discount as investors avoid such titles that seldom proceed with changes to their portfolio or diversification mix.
