Mutual funds finally beat inflation

The strong growth in quotes on the Bucharest Stock Exchange and the stagnation of the interests on the monetary market amid a downward inflationary trend have finally generated gains in real terms for mutual fund investors. The average growth of the shares of the Romanian mutual funds was 14% in the last twelve months, as revealed by the Union of Collective Placement Bodies (UNOPC) while the inflationary rate in the same time amounted to 13.7%. Government securities, which account for more than 70% of the total assets of the Romanian funds, are still yielding up to 18%, whereas the yields of the municipal bonds, which have attracted part of the funds’ investments in the last few years are now ranging between 20%-22% a year. Quotes on the Bucharest Stock Exchange have progressed by more than 30% since the beginning of the year alone, yet listed securities account for only 6% of the funds’ investments. Highest growth was again achieved by the funds investing in shares on the Bucharest Stock Exchange last month. ZF