Athena invests in Infinity I – China Fund

Athena Cyprus Investment Co Ltd (ATH.CY) announced its participation in the venture
capital Infinity I – China Fund, which focuses on companies related to the high-tech sector. The total amount of investment to be locked up stands at $10mln. This comes in line with the Company’s target, to reduce its exposure in the stock market and diversify its portfolio, by investing in alternative investments, related to the high-tech sector.
Venture Capital Infinity I – China Fund focuses on high-tech companies based on Israel and China and operate in the sectors of new material, telecommunications, internet, software and medical appliances. The strategy that will be followed is the identification of tested technologies from Israel with the developing technology market of China and
its production potentialities. Infinity I – China Fund has commitments of more than $300mln and its main sponsors are Clal Industries & Investments, member of IDB Group, one of the strongest business groups of Israel and China-Singapore Suzhou Industrial Park Ventures Co., a Chinese investment fund with capital of $455mln.
CISCO analysts noted that ATH’s investment in the venture capital asset class will bring diversification benefits to its investment portfolio as well as higher expected returns. However, CISCO analysts note the high risk of these investments as well as their illiquid nature due to the lock up period (5-7 years) of the funds invested. CISCO analysts estimate that this investment consists of approximately 11.9% of ATH’s total assets which together with the investment in FBR Infinity II Ventures, total venture capital investing in ATH amounts to 18.1%. “In our view an optimal weight in this asset class could be a lower percentage given the risks inherent in the investment,” conclude CISCO analysts.