Assets in Investment Funds Increased Again in October

Assets under management in investment funds increased by 1.9% to HUF 325 billion in October, meaning that at the end of the month members of the Association of Investment Fund Managers and Asset Managers in Hungary (Bamosz) managed HUF 17,214 billion in investment funds, the association has told MTI.

Money market funds lost HUF 5 billion, almost one percent of assets. Yields almost completely absorbed this outflow, so overall the assets of the category fell by only 0.1% in October.

A total of HUF 56 billion flowed into bond funds. Short-dated bond funds saw inflows of HUF 18.7 billion, long-dated bond funds HUF 31 billion and free-dated bond funds HUF 6.3 billion. Returns were also positive, with net asset value up 1.6%. In line with expectations, assets in this category crossed the 6,000 billion mark.
HUF 64.8 billion flowed into balanced funds, the second highest level for the month. The category's assets continued to be boosted by returns, with an overall increase of 3.2% in October.

Equity funds attracted HUF 5.3 billion, and managed to cling to positive territory even in negative sentiment, with category assets up 1.4% last month.
Capital protected funds received HUF 10.4 billion during the month. Returns also contributed to the gain, with assets in the category up 2.8% in October.
Absolute return funds have HUF 69.9 billion in the sales queue, the most among the categories. Yields also contributed to the result, with assets in the category up 4.6% over the month, exactly in line with the previous month's performance.

Derivatives funds saw a capital outflow of EUR 3.9 billion, entirely attributable to two maturing funds. Returns were unable to materially affect the change in assets, with fund assets falling by 30.9% in October; this means that the category has been further marginalized.

Outflows from real estate funds amounted to EUR 23.5 billion during the month, with net asset value falling by 0.3% as a result of returns and price movements.

Commodity funds saw capital inflows of HUF 7.1 billion, with net asset value also boosted by yields, resulting in an asset change of plus 10.2% for the month.

Closed-end funds, which primarily manage the assets of institutional investors, attracted HUF 15.2 billion in capital last month. Returns did not help growth this time, with assets increasing by only 0.9% in October.

Bamosz is the association representing the domestic fund and asset management industry, with 24 members managing a total of HUF 22,600 billion in assets.