IKA unveils mutual fund
The Social Security Foundation (IKA), the country’s largest welfare and pension fund, is expected to market its first-ever mutual fund in the fall. The fund, also a first for a Greek pension fund, needs the approval of the Capital Market Commission. The Commission is expected to finish examining IKA’s application by early September, by which time OGA, the farmers’ pension fund, may also decide to unveil its own mutual fund. IKA’s Board of Directors gave the go-ahead to the creation of the fund last Thursday but announced its decision yesterday, saying that it is a hallmark of the new policy favoring a more active management of the social security fund’s reserves. «The present conditions in Greek and foreign capital markets provide opportunities for an increased yield on the part of long-term investments and favors the active management of the Foundation’s property.» IKA’s mutual fund is worth (according to July 18, 2002 market prices) just over 310 million euros. Of these, 223,468,324.15 euros, or 72.09 percent, are placed in bonds; 31,574,912.34 euros (10.19 percent) are placed in shares, and 44,137,537.27 euros (14.24 percent) in other mutual funds. There is also 10,819,226.24 euros in cash. The bonds are three-, five-, 10- and 20-year state bonds. The stocks portfolio includes shares of Hellenic Portfolio Investment Fund, Aluminium de Grece, Public Power Corporation, state soccer pools and lottery firm OPAP, the Thessaloniki Port Authority, Hellenic Duty Free Shops, OTE Telecom and CosmOTE. The mutual funds portfolio includes the Delos Balanced and Delos Income, Alpha Domestic Growth, Hermes Domestic Growth, Hermes Income Securities, Eurobank Bond, Interamerican Securities, Aspis Domestic Securities and Piraeus Domestic Securities.
