Rumors of withdrawals highlight declining confidence in funds market

The Sampo Group of Finland is rumored to be considering a withdrawal from its recently-acquired Polish pension fund, OFE Norwich Union. And in another sign of dwindling confidence in the market, Prawo i Gospodarka is reporting that OFE Bankowy may soon be put up for sale, although shareholders of PTE PKO/Handlowy, the fund's owner, refused to confirm the report. Speculation about the two withdrawals has been fueled by the sector's poor results, with only one fund, PTE AIG, recording a profit last year. Sector representatives claim that investors are losing patience because they consider State cooperation to be unsatisfactory. In particular, they complain about the increasing margins being consumed by Social Insurance Company (ZUS), problems with the premium transfer system, and "irresponsible statements by politicians". (Prawo i Gospodarka, p. 8) M.K.