FNA gives signs of improvement

The National Accumulation Fund (FNA) liquidity value went up by 2 billion lei to 47 billion lei.

Dragos Simion, manager of Quadrant Asset Management (QAM), which manages FNA liquidity, says that the increase came from the recoup of 1 billion lei, while the rest of the money stood for interest rates.

“I think FNA is going to improve. The assets increased by 2 billion lei and a share of them are profits,” Dragos Simion told Ziarul Financiar.

Last year, QAM signed a 120-day contract to manage the liquid assets from FNA portfolio. Though the contract was signed last December, the administrators could take over the business only at the beginning of January this year, as the money was blocked in the banks’ accounts. This contract does not stand for assets takeover and investments units will not be redeemed.

Total value of FNA assets was 120 billion lei before the unit trust industry collapsed last year. The liquid and receivable assets were worth 73 billion lei last autumn.

Among these, there were Industrialexport bearer shares, whose value was largely overestimated by SOV Invest in FNI and FNA assets. The other assets are still under litigation.

FNA Investors Association has filed a lawsuit attempting to recoup the rest of the assets at the value they had before the collapse.

The fund’s members have sued the Romanian state and claim 50 billion lei in damages, but analysts think that this lawsuit is unlikely to succeed. FNA had 15,000 investors last spring.

FNA investors will meet in a general assembly to decide the fund’s reorganisation and possible liquidation, which would allow them to recoup only one third of the initial value of the assets.

The other choice is to reorganise the fund, which would be further managed by another company. The payment of the investment units may resume after all the funds’ assets value will be known for certain.