(Ondřej Daťka) We have downgraded RIF from accumulate to reduce. The reason is a very high exposure to the troubled IPB bank’s stock and bonds (4.9% and 3.9% of NAV, respectively, as of April 30, 2000). The short-term attraction of the fund was that a 10-12% discount offered a short-term investment opportunity in light of the planned opening. The initial 6% redemption fee would be reduced by 1% every month (the opening was originally planned for July, has been approved by the Securities Commission, but has been delayed by a minority shareholder’s legal action). However, the uncertainty surrounding IPB’s future and given RIF’s exposure to IPB, we have decided to downgrade our recommendation from accumulate to reduce.
For other recommendations, click
HERE.