KD manager raises bet on the BSE to return among funds with highest yields

Although they have not fully caught the Bucharest Stock Exchange’s rally in the past year, the managers of KD Maximus fund find comfort in the thought that their cautious strategy has curbed losses in the past three years. Last year’s prolonged BSE rally took mutual fund managers by surprise. The managers that bet on increases, keeping over 80% of the funds’ assets invested in stock, managed to end 2009 with returns of as much as 100%. Doubting the stock market’s rebound, other managers such as KD Investments embraced a cautious investment strategy, keeping less than 70% of the assets of KD Maximus on the

Stock Exchange and preferring a higher exposure on banking deposits instead. KD Maximus fund ended last year with a 36.7% yield. “In 2009, we were more prudent than our rivals. A higher exposure to stocks, however, must be balanced against associated risks. Our priority is still generating returns amid risk conditions that can be controlled,” said Jan Pricop, deputy general manager of KD Investments with net assets under management worth 47m RON (11.4m euros) from a number of 850 investors.