(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.
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