ABOUT SIF TRANSILVANIA
Societatea de Investiții Financiare Transilvania S.A. (S.I.F. Transilvania) is a closed-end financial investment company, set up by Articles of Incorporation. The Company is included, according to the F.S.A. regulations, in the category of „Other collective investment undertakings (NON-UCITS) with a diversified investment policy” and it is authorized as an Alternative Investment Fund Manager (A.I.F.M.). S.I.F. Transilvania is managed in a two-tier management system by an Executive Board which is controlled by a Supervisory Board.
The subscribed and paid-in share capital worth RON 218,428,666.40 is composed of 2,184,286,664 common, registered and dematerialized shares issued at a par value of RON 0.10 /share. The shares are traded at the Premium Category of the Bucharest Stock Exchange (BSE), under SIF3 symbol.
S.I.F. Transilvania’s aim is to manage the portfolio investments and to continuously identify investment opportunities under the condition of ensuring a reasonable level of the investment risk, with the view of offering to its shareholders the opportunity of achieving attractive returns and the increase of the capital invested.
S.I.F. Transilvania holds and manages an investment portfolio consisting of stocks, bonds and other financial instruments. In accordance with the applicable legal regulations, the Company publishes monthly the Statement of Assets and Liabilities (Net Asset) and quarterly, semiannually and annually – the Detailed Statement of Investments.
The shareholders register is kept, under contract and law provisions, by the central depository company – Depozitarul Central S.A. Bucharest. The custody and depository services related to the financial instruments held by S.I.F. Transilvania are provided by BRD-Groupe Société Générale.
The Company’s annual financial statements are audited by the financial auditor (statutory) Deloitte Audit S.R.L. Bucharest.
S.I.F. Transilvania is a full member of the Invest Europe with headquarters in Bruxelles, the Romanian Fund Managers Association, the Capital Market Professionals Organization (OPPC), the National Committe of the International Chamber of Commerce Romania and the Brasov Chamber of Commerce and Industry.
Strategic Guidelines on Portfolio Management
The process of restructuring and optimization of the portfolio of financial instruments will continue during 2017-2021, with an aim to:
- achieve structural balance in terms of sectors and classes of assets;
- improve the portfolio’s liquidity;
- ensure a portfolio risk-return ratio which facilitates the generation of resources required for the company’s development and the remuneration of S.I.F. Transilvania’s shareholders in a sustainable and reliable manner
For the period 2017-2021, the company has the following main objectives:
- to speed up and complete the portfolio restructuring process by:
- applying the “exit” strategy - specific to the company’s operation as an investment entity, for each and every sub-portfolio, with a focus on closed-end holdings with low growth potential;
- completing the stabilization and balancing processes regarding the activities of the companies in which we hold majority interest and which benefited from investment programs; promoting dividend related policies which support, at the level of such companies, investment recovery and, at the level of S.I.F. Transilvania, the substantial increase of the dividend income;
- operationalizing the investment vehicle which will manage the shareholdings in non-operational companies; the implementation of this special purpose vehicle will lead to the streamlining of the management of such shareholdings and to the accurate reflection of the quality and structure of the managed portfolio.
- to make the portfolio shareholdings more efficient by:
- actively managing the portfolio / sub-portfolios;
- promoting innovative and efficient management and administration systems;
- promoting the principles of corporate governance focused on transparency, objective performance assessment and efficient risk management;
- using efficient monitoring and control/auditing systems.
Strategic Guidelines on Investments/Disinvestments
In support of the structural balancing of the portfolio and completion of the restructuring process, the following strategic guidelines on investments/disinvestments for 2017-2021 are outlined:
- the development of efficient marketing and trading programs for selling the shareholdings included in the “exit” category;
- the development of efficient investment programs, with investment yields at levels accessible to sophisticated investors, through:
- acquiring highly-liquid listed securities, with attractive shareholder remuneration policies, for consolidating the “dividend” holdings sub-portfolios in the total managed portfolio;
- developing speculative activities on the capital market; during 2017-2021, the weight of dividend income from the speculative activity should ensure a minimum of ¾ of the total revenues of S.I.F. Transilvania;
- investment diversification and portfolio optimization by acquiring variable- and fixed-income financial instruments, on various markets.