Investors in mutual funds take a break, seeking shelter in foreign currencies

Mutual funds' assets advanced at a slower pace in May, to a total volume of 4.6bn RON (1.1bn euros), up 1.6% month-on-month. Stock market corrections and RON decline pushed investors to more carefully consider their placements. The over 50 mutual funds attracted 98.6m RON (24m euros) from investors in May, almost three times less than in April, when net inflows climbed to 245.6m RON (59m euros), according to the monthly report published by the Association of Fund Managers (AAF). In the first quarter, the value of net sums funds attracted from investors reached 795.4m RON (193m euros). The slower pace was more strongly felt by monetary funds, which managed to garner net inflows of 42.8m RON, way below the values reported during previous months, while from equity and balanced funds investors withdrew a total of 23.7m RON. "I see May as an exception caused by the domestic situation and the numerous questions around taxation, the development of the agreement with the IMF, and the NBR's decision to cut the benchmark rate. Part of mutual fund investors, particularly those with a speculative behaviour preferred to withdraw from funds to invest in foreign currencies, betting on the onset of a downward trend for RON (...)," said Dragos Neacsu, chairman of Erste Asset Management, industry leader.