Biggest fund manager bets on RON in 2010

Dragos Neacsu, the chairman of investment manager Erste Asset Manager, which manages over 340 million euros in assets, bets on a decline of the benchmark rate to 6% and on the appreciation of the domestic currency in 2010.

“I believe in the domestic currency. The RON will follow a positive trend next year, the exchange rate will continue to appreciate to 4.1-4.2 RON for one euro and may at times go below 4 RON. The benchmark rate may go down to 6%, as well, given the improvement of the economic situation,” he said.

Erste Asset Management, which is managing assets worth more than 300 million euros from over 57,000 investors, is the biggest mutual fund manager, accounting for 47% of the mutual fund market. The company manages a portfolio of seven mutual funds, the biggest of which is BCR Monetar with 180 million euros in net assets.

In the opinion of Neacsu, the rebound of the economy will happen in 2010 but will largely depend on the way the political class addresses the issue of the reduction of the budget-paid employees’ salaries.

“The private sector has been bearing the burden of the crisis, with cost cuts as proof to that. Cutting the Gordian knot – the budget-paid salary expenses, is, however, a maturity test for the government and the political class, ” he concluded.