Concorde celebrates the 15th anniversary of one of the oldest and most successful open-end investment funds, the Concorde 2000, said the investment fund management company on Thursday.
According to the Association of Hungarian Investment Fund and Asset Management Companies (BAMOSZ), out of 600 different investment funds on the Hungarian market, only 21 exist for 15 or more years, and some of them changed their name and/or their investment policy since.
The Concorde 2000 remained unchanged for all these years, and its one third of shares, two thirds of bonds investment policy guarantees that the risk is not too high for the Hungarian retail investors, but the long-term returns are higher than those on retail bank savings.
Those who invested HUF 1.0 million in Concorde 2000 at the start and held it through 15 years have now HUF 5.511 million. This is an annual yield of 12.04%, and for those who held it from the beginning, tax-free too.
During the last 15 years, the yield on Hungarian sovereign bonds was just over 10% annually, the Budapest Stock Exchange's BUX index grew by 6% on average, while the global equity index only 3% annually (2.3% in USD). The Concorde 2000 overperformed the Hungarian bonds and bank deposits as well as the international and domestic equities.
Although the fund has only 2 percentage points advantage on Hungarian bond yields, it means a lot in 15 years. A HUF 1.0 million original investment in the fund means HUF 1.3 million more yield on Hungarian bonds over the 15 years. (Including the transaction costs and taxes, the difference is more than HUF 2.0 million.) According to Concorde, the investment fund provided the highest yield among those existing for at least 15 years.