HUNGARY - Hungary's fund assets fell by an average 2.2% in July, according to the latest figures from BAMOSZ, the Association of Hungarian Investment Fund Managers.
Assets in Hungary's private funds - including pension, insurance and investment funds - fell to HUF1,910.1bn (e0.7373bn) at the end of July.
However, assets in mandatory and voluntary pension funds, and health and assistance funds were up by 1.9% from June, confirmed András Temmel, secretary general of BAMOSZ. Other portfolios fell 3% during the month.
But investment funds took the sharpest fall at -3.6% to HUF1,092.6bn, with money market funds (-7.7% to HUF209.6bn) and bond funds (-3.5% to HUF732.5bn) taking the biggest knocks.
Temmel explained that following rapid growth of the investment fund market during the past 12 months, there was a steep drop in June and July mainly due to a change in Hungary’s monetary policy.
“The big and growing budget deficit, and some wrongly communicated steps by the [Hungarian] government, severely weakened the local currency,” he said.
“The National Bank - preventing further fall of the Forint - dramatically raised the interest rates, which caused serious losses for domestic bond and money market funds in June.
”He added: “I believe that many investors, facing short term losses, decided to withdraw their money from bond and money market funds, which caused the drop in the NAV of those funds. We hope that this process will change within the next months.
”Real estate funds saw the highest asset increase at 4.4% to HUF51.2bn, but still fell short of the double-digit growth rate registered between January and June.
Assets totalling HUF79.4bn were held in share funds at the end of July, up 1.4% from June, and assets held in mixed-funds rose 3.3% to HUF19.8bn.
Fund assets also shifted slightly from shares in investment funds towards individual portfolios, and mandatory and voluntary pensions, health and assistance funds.
Fund managers handled a total of 102 funds in July, including 98 open-ended and four closed-ended funds. Of these funds, 70 invested in Hungarian securities and 32 in foreign securities, with the HUF1,034bn and HUF58.5bn assets, respectively.
Established in 1993, BAMOSZ consists of 23 investment fund managers, from a national total of 28 licensed managers and has a 99% national coverage ratio.
Hyperbolic discounting and political temptation: Why Brexit-fuelled AE reversal would be a 'monumental' mistake
The home secretary has suggested AE should be scrapped in the event of a no-deal Brexit. Darren Philp explains why this would be misguided
The trustees of the Kodak Pension Plan No.2 (KPP2) have said it will likely enter the Pension Protection Fund (PPF) in "due course" after reviewing the scheme's investment in Kodak Alaris.
A US company has completed a £285m pensioner bulk annuity for around 1,100 of UK members with Legal & General (L&G).
Former BHS chief Dominic Chappell has been accused of trying to rewrite history as he seeks to overturn a conviction for failing to hand over information to the regulator.