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Q2 stock of investment fund units grows despite price losses

The stock of investment fund units, calculated at net asset value, grew 0.6% to Ft 2,099 billion (€7.5 billion) in the second quarter of 2006 as the result of net purchases worth Ft 30.2 billion and price losses of Ft 18.5 billion, the National Bank of Hungary (MNB) said in a report published on Tuesday.

Investment funds were the only segment on the Hungarian securities market to grow in Q2 2006, a period which saw a dramatic deterioration in market sentiment after the announcement of an austerity program early June following the April general elections. The situation was made worse by a sharp weakening of emerging market currencies in mid-June.
Financial companies, with the exception of banks, were net buyers of investment fund units in Q2 2006, purchasing Ft 23.3 billion, more than compensating for a Ft 6.7 billion price loss. Financial companies' stock of investment fund units at net asset value (NAV) reached Ft 397.4 billion at the end of June. Among financial companies, the biggest buyers of investment fund units were financial intermediaries, purchasing net Ft 12.7 billion, and insurance companies and pension funds, purchasing a combined net Ft 12.1 billion.