Romanian investment funds SIFs double shareholder dividends

Shareholders in the four of the five SIF investment funds in Romania have reasons to rejoice, as they will received higher dividends this year, after SIFs' profits were boosted by the sale of minority packages in Romanian lender BCR to majority owner Erste. SIF Moldova, SIF Transilvania, SIF Banat-Crisana, and SIF Muntenia, recently announced that they will pay higher dividends to shareholders this year, with a total value of some EUR 97 million (about RON 421 million). This average value is twice last year's dividends. The fifth SIF, namely SIF Oltenia, is yet to announce the value of the proposed dividend to shareholders for this year.

SIF Transilvania proposed dividends of some EUR 42.7 million (RON 186 million) for this year - 90 percent above last year’s figure, while SIF Muntenia proposed to pay dividends of about EUR 15 million (RON 65 million). SIF Moldova proposed dividends of around EUR 26 million (RON 114 million) for this year - 60 percent of the net profit in 2011, and SIF Banat-Crisana - dividends of EUR 12.6 million (RON 54.9 million). On average, the four SIFs proposed to distribute this year about 80 percent of their profits from last year, of about EUR 121 million. Erste Group increased its ownership in BCR to 89.1 percent by acquiring a stake in the SIFs – the acquisition process is to continue in 2012. Irina Popescu, irina.popescu@romania-insider.com (photo source: Sxc.hu)