According to Polish daily Puls Biznesu, PKO/CS TFI plans to grow its AUM to some PLN 7bn in 2006 (a 34.6% increase from PLN 5.2bn at the end of 2005). PKO BP, which plans to increase its stake in its mutual funds subsidiary by another 25% (currently 50% co-owned with Credit-Suisse), also stated that it is changing its strategy concerning investment management company. The bank wants to more actively sell products via its branch network, as lately the company has been losing market share. Combining the increase in ownership with a more active cross-selling strategy towards mutual funds makes sense, in our opinion, as sales typically cannabalize a bank's deposit base. We view this as a positive development for the bank, although we maintain our Hold recommendation with fair value of PLN 30.6. We do not expect the news to have any material impact on the stock today.