Dear shareholders ,

 


We want
to bring your attention to some of SIF Moldova achievements made last year andthe main objectives for 2011, as it were presented and approved by the General Meeting of Shareholders of April
4, 2011.


During 2010 we managed to maintain at a high level the net profit achieved in the recent years (98 million RON in 2008, 101 million RON in 2009 and 96 million RON in 2010). We have managed to maintain the financial stability of the company, in order to meet your expectations. We kept at the same time, the long-term resources needed to develop the company and we managed to get the first place in our sector of activity in Romania
.

 

The investment policy, mainly aimed at portfolio restructuring and orientation on the best performing sectors of the economy has led to visible results since 2010, through the increased exposure on the Romanian energy sector and the opportunity called Fondul Proprietatea, with a temporary reduction of the exposure in the financial sector.

 

In 2011 and in the coming years we will reap the "fruits" of this active management strategy. We are sure that the allocation on two main pillars in the context of a precise definition of the investment limits by sectors, by types of financial instrument, with the option of supplementing it on the foreign markets, will lead to a "success story" of SIF2 share on the Bucharest Stock Exchange, as it will be a unique opportunity to invest in just one security so that the investment to be in the entire Romanian economy.

 

We want to mention that the dividend for 2010 of 0.09 RON/share is the largest in SIF Moldova existence. The distribution rate of the net profit approaches 50%, given that SIF Moldova paid each year over 75% of the amount due to the shareholders. For the fiscal year 2010 the total amount of the dividend exceeds 46 million RON, that’s over 83% of the total cash of the company, which is 56 million RON at December 31, 2010.

 

Our proposal for 2011 and in perspective, approved by the shareholders, aims a predictable dividend policy that ensures a higher return than investing in the securities of many companies in Europe (Press Release concerning the payment of dividends, February 25, 2011).

 

We act with dynamism to maintain a high level of financial performance. The steps started in the current mandate of the Board on the following directions: active portfolio management, implementing corporate governance principles, risk management, organization based on procedures and ensuring compliance in the decision-making and operational area - will continue.

 

We aim, determined, to achieve the quantified targets established in "The Investment Policy Statement”, approved by the shareholders, to increase the value and the return on the managed assets, so that SIF2 share to become a favorite security for the investors, with predictable benefits for them.


We still consider that the modification of the Articles of Incorporation of SIF Moldova is very important, in order to be aligned with the latest regulations of the companies and in accordance with the provisions of the capital market. The changes mainly concern: detailing the object of the company, lowering the quorum needed for the meeting and for the adopting of future resolutions of the  general meetings of the shareholders, which is aimed to make flexible making future important decisions and to allow an increased involvement of the shareholders, the opportunity to list SIF 2 share in parallel, on another regulated market, but especially the removal of
any shareholding threshold for SIF2, ensuring compliance of the legislative framework, favorable to shareholders
.

 

In an objective process of communication it can be noticed that SIF Moldova has begun and will continue to differentiate itself as an investment company that has the ability to dynamically adapt to the evolution of the financial markets and environment in which it operates. 

 

 

Costel CEOCEA,

President & CEO