Latvian investment companies in the red

  • 2003-09-18
  • Baltic New Service
RIGA - Latvia's investment companies have posted losses of 24,600 lats (38,300
euros) after the first six months of this year, as opposed the profits in
the same period last year. Revenues are down 8.3 percent to 157,600 lats.
The Latvian Finance and Capital Market Commission reported that the losses
were caused by the investment companies' decision to keep working toward
attracting more clients for funded pension schemes. In late June Latvia had
eight investment companies managing 14 investment funds, including eight
open and six closed funds.
By the end of June this year three investment companies, subsidiaries of
major banks, had received licenses for managing the state funded pension
scheme and had established 11 state funded pension scheme investment plans.
The country's financial watchdog reported that administration costs for the
investment funds in the first half of this year reached 161,400 lats, up 145
percent year-on-year.
Assets for investment funds, however, gained by 29 percent since the start
of the year reaching 1.81, million lats, including 62.9 percent in money and
credit institution claims and 25.1 percent securities and capital stocks.
Total assets of investment fund managed assets in late June reached 21.28
million lats, up 73 percent year-on-year.
Of the open investment funds in the first half of this year the biggest
return was gained by the Baltic Index Fonds (Baltic Index Fund) on 18.7
percent annual interest, followed by 7.1 percent with the Baltijas Juras
Sabalansetais Fonds (Baltic Sea Balanced Fund). An interest of 4.9 percent
was recorded with Latu Obligaciju Fonds (Lat Bond Fund) and 3.6 percent with
Valsts Obligaciju Fonds (State Bond Fund), 1.9 percent with Latu Rezerves
Fonds (Lats Reserve Fund) and 1.4 percent with Naudas Tirgus Fonds (Money
Market Fund).