TFI's revenues in 2020 down by 3%

Total revenues of TFI in 2020 were 3 percent lower than in 2020. The reason was the decline in the value of funds' assets caused by the pandemic and the reduction of fixed remuneration for management, according to the report of the Polish Financial Supervision Authority (KNF).

"After the increases in the value of assets in 2019, the first months of 2020, in connection with the pandemic caused by the spread of the SARS-CoV-2 virus, brought significant outflows from funds, in particular from debt funds, which in the previous year gained new funds as alternative investing savings with low-interest rates on bank deposits," the report reads.

The KNF noted that despite the significant outflow of funds from investment funds in March and negative sentiment persisting in April 2020, in the following months the funds managed to recover money from their clients to a large extent. New funds flowed mainly to specialized open-end investment funds (SFIO) established under the PPK and mixed funds.

In total, TFI's revenues in 2020 amounted to PLN 3.4 billion.

An additional factor that contributed to the decline in TFI revenues last year was the reduction of fixed remuneration rates for the management of open-end investment funds (FIO) and SFIO. As the KNF reminded, from January 1, 2020, the maximum rate of this remuneration is 3 percent.

(PAP)