SIS FUNDS (EQUITY)

Location:

Czech Republic

Project number:

4425

Business sector:

Insurance, Pension, Mutual Funds

Notice type:

Private

Environmental category:

FI

Target board date:

21 Oct 1997

Status:

Completed

PSD disclosed:

22 Sep 1997

 

Project Description

The EBRD will invest CZK 186 million and CZK 159 million in Sporobond and Sporotrend respectively, two mutual funds which SIS will launch by the end of 1998. The two funds will target domestic retail and corporate investors interested in diversifying their savings and cash management. The new funds will belong to a new family of mutual fund products launched by SIS with low overall fees and which allow easy switching between the funds.

The project will support the introduction of new mutual funds products in the Czech market with completely unique characteristics compared with other mutual funds now available. The idea of different mutual funds, with high liquidity features, linked to Giro accounts and offered in competition to deposits will stimulate competition within the banking sector and offer new alternatives to retail and corporate customers.

Transition Impact

By participating in the launch of two new mutual funds, the Bank's investment will help to:

  • introduce domestic-based investment products, which target local rather than foreign investors and stimulate domestic savings;
  • support the development of domestic capital markets; and
  • ensure the application of best practice and EU standards in the field of asset management.

The Client

SIS will be the investment manager for the two funds. SIS is one of the largest Czech investment managers, with about 19 per cent of the market share in terms of assets managed. Sporobond is a fund which will mainly invest in local government and corporate bonds. Sporotrend will be investing primarily in Czech listed stock and equity-related instruments.

EBRD Finance

CZK 186 million (ECU 5.3 million) in Sporobond and CZK 159 million (ECU 4.5 million) in Sporotrend.

Project Cost

The funds will be open ended so the final size of the project is not known.

Environmental Impact

This financial intermediary project will have no direct impact on the environment. SIS has agreed to carry out its operations in accordance with the EBRD's "Environmental Procedures for Listed Securities" and will submit an annual environmental report to the Bank.

Technical Cooperation

None

Company Contact

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.