Net investments in mutual funds: 21m euros

Mutual funds attracted 76.5 million RON (over 21 million euros) in investments last year, which accounts for some 60% of asset growth of the overall market in 2005, according to the statistics released by the National Union of Collective Placement Bodies (UNOPC).

However net investments by small investors do not exceed 50 million RON (14 million euros), with the rest actually being the money brought into the market by the banks that launched new mutual funds last year, namely HVB, Banca Transilvania and Banca Comerciala Romana. HVB invested some 18 million RON in Europa Obligatiuni, while Banca Transilvania subscribed about 8.8 million RON in two of its funds, BT Clasic and BT Maxim.

Fund unit subscription amounted to 414.7 million RON (114.4 million euros) in 2005, while withdrawals amounted to some 338.5 million RON (93.4 million euros).

The number of investors in mutual funds came close to 71,000 by the end of December, 14.4% higher than at the end of 2004.

The assets of the mutual funds went up by 129 million RON (35.6 million euros) last year, reaching 92.7 million euros by the end of December.

The UNOPC representatives say that last year”s performance was good but not yet satisfactory, due to the obstacles that came up in the course of 2005.

“The increase in the number of investors by 14% is insufficient. Furthermore, the average investment per investor is still quite small,” Dan Nicu, UNOPC chairman told the “Investment Fund Market – Growth and Diversification” conference.

“The year 2005 meant a consolidation of the market through mergers and entries of new operators, as well as a diversification by the launch of new funds and more diversified investments. Still, there were some shortcomings that prevented us from getting better results, such as the lack of investment instruments and the slow-moving process of adjustment to the new legislation, which delayed new product launches,” Nicu explained.

Fund market in 2005

* Fund unit subscription stood at 414.7 million RON (114.4 million euros), while withdrawals amounted to 338.5 million RON (93.4 million euros)

* Number of fund investors came close to 71,000 at the end of December, 14.4% higher than at the end of 2004

* Mutual fund assets rose by 129 million RON (35.6 million euros)