Cluj-Napoca based Globinvest, an investment management company, will launch two private investment funds before the end of the year and is hoping to double its assets by the end of 2006.
Globinvest, managing two of the oldest funds on the market, Napoca and Transilvania, is thus entering the market of private funds, which are included in the category of Other Collective Placement Bodies (AOPC), as defined by capital market legislation.
The company is likely to become the first manager of classic mutual funds to launch these kinds of investment alternatives. The Cluj-based management company is thus trying to make use of other placement opportunities available on the market.
"By launching these two private funds, we plan to add to the range of products we offer our customers. The major advantage of a private fund is the possibility of implementing a much more flexible investment policy, with much lower operating expenses and much better yields," stated Ilie Cenan, Globinvest chairman.
The first fund launched by Globinvest is called The Private Commercial Fund (Fondul Privat Commercial - FPC) and will invest about 80-90% of the funds in commercial paper maturing in 6 months at most. The initial value of a fund unit stands at 1,000 RON. The fund has been operational for several months, but could not be licensed as a result of the lack of secondary legislation linked to funds, which came into effect as late as the middle of this year.
"Documents linked to this fund have been sent to the National Securities Commission for approval in line with current regulations. The fund''s subscribed capital at present stands at 13.3 million RON (above 3.6 million euros)," Cenan explained.
The second private fund that Globinvest plans to launch is called the Transylvania Private Equity Fund (Fondul de Actiuni Priva
