Czech Republic: Mutual Funds’ Assets Reach €7.8 Billion At End-2005

The volume of assets of Czech investors in domestic and foreign mutual funds reached a record CZK224.9 billion (€7.8 billion) at end-2005, representing a 33% year-over-year growth, Capital Market Association member Martin Fuchs announced.

The volume of assets of Czech investors in domestic and foreign mutual funds reached a record CZK224.9 billion (€7.8 billion) at end-2005, representing a 33% year-over-year growth, Capital Market Association member Martin Fuchs announced. In terms of volume of assets, money market funds managed the highest amount - CZK 102 billion at end-December, up by 18.9% y/y. Second ranked bond funds with assets worth CZK43.8 billion, followed by mixed funds with assets amounting to CZK27.2 billion, stock and secured funds had assets worth CZK23.8 billion each, up by 64% y/y and by 116.4% y/y respectively, and funds of funds assets reached CZK4.3 billion, up by 342% y/y.

The structure of Czech investors’ portfolio has significantly changed thanks to the share market yields. In 2005 some 162 new funds emerged, and at present there are 1,104 funds altogether, of which 65 domestic funds managing assets worth CZK135.2 billion, and 1,039 foreign funds with assets amounting to CZK89.7 billion. In 2006, an additional CZK40 billion to CZK60 billion are expected to be invested in mutual funds.

Meanwhile, the volume of assets managed by AKAT members reached CZK352.8 billion (€12.2 billion) at end-2005, translating to a 70.6% y/y , AKAT member Jan Kabelka stated. About 87% (CZK305.4 billion) were under asset managers’ active management, while the remaining CZK47.4 billion were managed by a form of the advisory mandate.

The largest asset manager in 2005 was CSOB Asset Management with CZK112.5 billion of assets. Second ranked ING Investment Management with CZK69.3 billion was followed by Komercni banka (CZK56.5 billion), Ceska sporitelna (CZK42.6 billion) and Winterthur Asset Management (CZK31.1 billion). Insurers and pension funds account for over 50% of the brokers’ clients; collective investment funds about 33% and individual investors for some 5%.