Higher and higher

The inflow of net assets into managed investment funds in Poland in May amounted to zł.4.5 billion, significantly higher than April's figure of zł.2.8 billion. Since the beginning of the year, a full zł.19 million of new assets has been invested in managed funds in Poland. This amount is more than was invested in managed funds throughout the whole of 2005 and amounts to 70 percent of the asset inflow of 2006, when zł.25.8 billion was invested in managed funds.

Marcin Dyl, president of the Chamber of Fund and Asset Management (IZFiA), is not surprised by the growing popularity of managed funds. He stressed that even the more cautious funds have a higher rate of return than bank deposits and added that those who have already invested in managed funds are putting more resources into them. "They see that it's bringing results," he said.

Some 75 percent of new assets invested in managed funds in May were allocated in Polish equity funds. Foreign equity funds have also been very popular. As Dyl explained, the favorable situation on the stock exchange encourages many to put their money in equity funds, and even move their savings from conservative funds to ones that are more aggressive.

At the end of 2006, the total net assets of Polish investment funds stood at zł.98.8 billion and in January the industry surpassed the zł.100 billion mark. At the end of May, the figure was zł.132.2 billion.

Dyl didn't want to predict what value investment-fund assets in Poland will reach by the end of the year, but indicated that it could reach zł.160 billion. He sees bright years ahead for investment funds. "We have a positive economic situation with a strong economic growth so undoubtedly the flow into investment funds will continue," Dyl predicts.