AKAT: Volume of client assets up CZK 10bn in Q3

Prague, Nov 3 (CTK) - The volume of assets Czechs have deposited in mutual funds rose by nearly Kc10bn to Kc226.6bn in Q3, according to data of the Capital Market Association (AKAT) released Tuesday.

Despite that, mutual funds lost over Kc17bn since the beginning of this year mainly due to a Kc30bn slump in Q1, AKAT said.

The results mirror the situation in the markets, AWD analyst Lukas Burik told CTK. Negative sentiment prevailed early this year to which investors responded with massive selloffs. Stock markets have calmed down however and growing optimism of investors has also influenced results of mutual funds. Equity funds reported attractive yields in the past few months and their popularity is rising, said Burik.

Evaluation of funds' assets is behind the growth, said Broker Consulting analyst Jan Lener. New investors' money is another reason, he said, adding that trust in financial markets is being restored.

Equity funds contributed most to the growth, with the volume of assets rising by Kc4.9bn in Q3. An increase was also seen by mixed funds, money market funds and funds of funds.

By contrast, secured funds fell by Kc0.8bn and real estate funds suffered some losses, too.

Assets in foreign funds grew by Kc4.3bn and domestic funds improved by Kc5.6bn in Jan-Sept.

The top five banks and companies managing mutual funds in the Czech Republic are the CSOB group with Kc78.1bn, the Ceska sporitelna group with Kc64.6bn, the Komercni banka group with Kc39.4bn, the UniCredit group with Kc10.6bn and Generali PPF Asset Management/CP Invest with Kc8.1bn.

Assets of mutual funds in the Czech Republic:

Fund Sept 30, 2009 (in Kc bn) Dec 31, 2008 (in Kc bn)
money market 73.9 88.1
secured 62.2 65.1
equity 29.8 23.5
bond 19.3 26.5
mixed 26.5 26.1
funds of funds 13.6 12.9
real estate 1.3 1.8
TOTAL 226.6 243.9

Source: AKAT