Status

Monthly overview of the markets of Status New Shares and Status Finance – September 2009

13.10.2009

In September the markets reached local peaks and despite monthly growth the substantial rise from the through in February and March indicate a possible slowdown in growth rates in the medium term. So far the main part of the growth resulted from the expectations that the worst scenarios were overcome and respectively the markets overreacted to the bad news from the end of last year and the first quarter of 2009. Confirmation that the growth is mostly a reaction to extremely negative bias from the culmination of the crisis can be seen in the faster rise from the through of the financial sector compared to other sectors since the financial sector suffered the highest uncertainty. A factual improvement in economic results for most sectors and countries is still not evident. Only after clear signals of economic recovery can we expect another wave of accelerated growth of world indices.

We witnessed a further growth during the month in the market capitalization of financial companies on the markets where Status Finance invests. Turkish and Bulgarian banks were among the few that entered a period of consolidation, which was expected for the Turkish banks due to the major gains over the previous months. Fort that reason, we lowered our share of investments in Turkey to 12% which we consider to be optimal fort he present moment. At the same time, due to the overcoming of the most unpredictable and respectively destructive phase of the business cycle we think that the markets will gradually start to calculate more expectations for real results and less for compensation of previous losses. In such conditions we find that the additional diversification would be extremely useful for a better risk/return ratio. For that reason we invested in Polish PKO, and if prices reach attractive levels we would additionally increase the percentage of its shares. The increase of liquid funds to over 20% available for investments gives us an opportunity for quick reaction and at the same time creates a buffer in case more markets enter a consolidation or correction after the rapid growth.

Detailed information about the performance of Status New Shares and Status Finance for September 2009 is available in the monthly reports of the funds published in the Documents section of each fund.