Equity-focused Romanian open-end funds gain ground in 2020

The equity-focused open-end investment funds in Romania boasted net inflows in 2020, although the fund management firms' aggregated portfolios decreased by 11% last year, Profit.ro reported. Equity funds invest at least 50% of their assets in listed shares.

Almost 47,000 investors use these vehicles to make indirect investments on the Bucharest Stock Exchange (BVB).

In the last quarter of 2020, the local fund managers succeeded in reversing the investors' outflow, and their assets increased by 6% compared to the previous quarter, according to the Fund Managers' Association (AAF).

However, the assets managed by the AAF members declined by 11% year-on-year to RON 22.16 billion (EUR 4.55bn) at the end of December.

On the bright side, the Romanian investors' risk aversion decreased, and the funds focused on the stock exchange recorded RON 149 million (EUR 30 mln) in inflows last year.

Jan Pricop, executive director of AAF, highlighted "an increased interest from investors who saw an opportunity in stock market corrections and considered it a good time to make new investments in this category of funds."

The equity funds' assets increased by 7.8% last year, while diversified funds (which invest both in equities and bonds) recorded a 4.2% increase. The funds with at least 50% of their assets invested in shares reached RON 1.81 bln (EUR 4 bln).

(Photo: Nitinai Sanuguarsi/ Dreamstime)