Warsaw (Puls Biznesu) – Last year, SEB TFI fund’s assets fell while income grew. Thanks to new products, assets should grow this year. How about the income?
Last year, SEB TFI had PLN 20m (EUR 5.2m) of gross income, or 20 percent more than a year earlier.
“This is the result of revenues from more profitable moderate growth funds. We have 38 percent of C/I ratio, one of the best in the market”, Ewa Malyszko, SEB TFI CEO stressed.
However, SEB’s assets fell. In the beginning of last year, they exceeded PLN 2 billion while at the end of 2006 they amounted to only PLN 1.5 billion. The other investment funds grew in the same period.
“There are two reasons for that. First of all, several institutional clients reached the income they expected and withdrew their capital. Moreover, debt funds were running away from the market while they constituted 60 percent of our portfolio so we were more affected than our rivals”, Ewa Malyszko explained.
In effect, SEB’s market share dropped from 3.32 percent at the end of 2005 to 1.59 percent at the end of last year. The company is not among the ten biggest funds any longer.
The main reason for the problems in Poland is the lack of its own banking sales network. SEB is going to sign agreements with more banks.
SEB is not going to sell the investment fund company, its most important firm in Poland.
“We expect that this year our assets will exceed PLN 2 billion. We also want to keep the financial result at the 2006 level”, Ewa Malyszko summed up.
(PLN 1 = EUR 0.259)