Net assets value of investment funds drops 5.6%

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The net asset value of Hungarian investment funds fell by HUF 427 billion or 5.6% from February to HUF 7.191 trillion in March, state news wire MTI reports, citing data released by the National Bank of Hungary (MNB) on Tuesday.

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HUF 261 bln or more than half of the drop came from net withdrawals - sales – of investment fund units and dropping prices reduced the total net assets value by a further HUF 228 bln. The drops were moderated by a HUF 62 bln increase caused by exchange rate changes, mainly the sharp weakening of the forint in the month.

The stock of households, who hold about half of all investment fund units, dropped the most, by HUF 371 bln, followed by financial companies with a drop of HUF 100 bln. 

Both proportionally and in absolute terms, derivatives funds suffered the biggest loss, of 14.3%, almost totally due to price drops. These funds account for about 10% of all investment fundsʼ value.

The net asset value of both bond and share funds dropped by a little more than 8%. But in the case of bond funds, the bulk or HUF 109 bln of the net asset value drop came from withdrawals. Share funds shrank exclusively on price drops. Mixed funds shrank by 5.2%, the bigger part on withdrawals. 

Investors withdrew net HUF 62 bln from property funds, but rising prices and exchange rate changes reduced the overall March drop to HUF 16 bln or 0.7%. With the relatively mild drop, property fundsʼ share in investment fundsʼ value rose to 31%.

The only funds expanding in March were the proportionally small money market funds where new money of HUF 12 bln and exchange rate gains more than compensated moderate price drops.

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