K&H Alapkezelő was the second-biggest fund manager in Hungary last year with a market share of about 20%, said K&H Alapkezelő CEO Zsuzsanna Zobor.
Due to the decreasing interest rates on deposits, investors increasingly turned to alternative savings with higher yields, and favored investment funds instead of deposits, she said. In addition, the recently introduced long-term investment accounts (tbsz), offering more attractive tax benefits, made long duration investments more popular.
This year, the investment market is expected to see further growth as tax changes leave Hungarians with more savings, she added.
She also expects the spread of the new-generation CPPI funds (constant proportion portfolio insurance, an open-ended fund offering a sensible risk/reward balance for investors) this year, however, “future trends on the market will naturally be affected by the law on investment funds expected to be presented to the Parliament this spring,” Zobor said.
K&H Alapkezelő, a subsidiary of K&H Bank, has been on the Hungarian market since 1997.
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