Property funds have highest yield in Hungary this year
According to statistics from the Association of Hungarian Investment Fund and Asset Management Companies (BAMOSZ), the net sales of bond, property, equity, mixed and closed funds were positive in September, with bond funds attracting net investment of HUF 38.6 billion and property funds HUF 23.8 bn.
In the case of bond funds, all sub-categories recorded capital outflow except short-term domestic bond funds, which carried the category in September with net investment of nearly HUF 42 bn. Including investments and yields, the total assets managed in bond funds rose by HUF 3.5 bn.
Property funds had the highest net investment for the past 18 months at HUF 23.8 bn. Net assets managed increased by 2.2% including yields.
Thanks to the continued and increasing capital inflow, property funds have been closing the gap this year and net sales could return to positive in a month or two if the trend holds.
In January-September, equity funds had the highest net sales followed closely by bond ad mixed funds. Absolute return funds fell further behind in September, losing assets both last month and in the frst nine months of the year overall.
Demand for property funds, which used to be the most popular category in recent years, is increasing, which is not surprising considering that this category has had the highest yield so far this year at more than 4%.
Controlling for capital changes, the 4.3% yield of property funds was followed by bond funds with a 2.2% return and money market funds with 1.7%.
In contrast, equity funds, which have attracted the most investments this year, are still more than 8% in the red, adding another percentage point in September. Meanwhile, mixed funds could soon return to the black as they are now only 0.2% below the line.
Absolute return funds continue to struggle, although they have improved to minus 16% in September. As reported earlier, this year’s losses at absolute return funds is “only” 8% if we exclude OTP Supra, which accounts for about half of the negative performance of this category, although it has begun to recover slowly.
Assets managed by investment funds have been increasing since the March low and were above HUF 6,430 bn at the end of September, nearing the HUF 6,500 bn level seen in January.
The more than HUF 100 bn increase in assets in September was due to both capital inflow and favourable yields, with the former contributing more than HUF 66 bn to growth and the latter nearly HUF 36 bn.
Cover photo: Getty Images
