The president’s investment portfolio is that of a balanced investor, with a risk profile above the population’s average one, say fund managers.
According to the asset declaration for 2013, Romania’s President in June 11, 2014 held a stake of 2,948 Romgaz shares he bought for RON87,763. The President most likely purchased the shares in last year’s public offering, when Romgaz listed its stock on the Bucharest bourse.
At the market price of June 11, of RON35.89/share, Basescu’s investment in Romgaz is worth RON105,803, namely RON18,000 more than the initially invested sum.
Dividends related to the 2,948 shares are added to this profit, namely a gross amount of around RON7,600. Overall, the investment in Romgaz shares brought the President a gross profit of RON25,600, namely a return of almost 30% in eight months, over nine times the banking interests.
Beside the investment in Romgaz stock, the president also has placements in dollar-denominated state paper worth $36,000 (around RON118,000).
“The portfolio structure shows the President has the profile of a balanced investor with a risk profile above the population’s average. It’s worth noting that the two investments are in paper of Romanian issuers, Romgaz and the Finance Ministry. This is a good signal from the President, spurring investments on the Romanian capital market,” said Florin Dolea, general manager of Pioneer Asset Management.
(English version by Catalina Apostoiu)