Polsat OFE turns to acquisitions to keep it the top fund

Although she declined to name the likely target, but it is rumored that it will be Skarbiec, which had been put up for sale by its owner, BRE Bank. Despite its star performance, Polsat OFE has so far failed to attract many new clients, with most of the extra 35,000 it attracted last year assigned to it by a draw among the former clients of funds that no longer exist. Also, it lost 8,000 clients to worse-performing rival funds last year. Analysts have blamed Polsat's poor distribution network and its failure to capture the potential synergetic effects with the other businesses of the Polsat Group, such as Invest Bank or Polsat Cyfrowy. But, says Horecka, attempts at cross-selling through its banking operations have be unsuccessful. She also said that it was unethical practices by some agents, who left the company taking clients with them, rather than competitors' superior offer, that were behind Polsat's losses of clients. Instead of launching a costly marketing campaign or increasing fees for its distributors, acquisitions offered the most efficient route of expansion, Horecka said. (Puls Biznesu, p. 10) R.M.