Mutual funds owned by banks controlled almost 70% of the market in late August, up from 57% in the corresponding period of last year, whereas the total assets doubled during the same period.
The increase in assets was mainly triggered by banks that invested significant amounts to strengthen their position on the market. The high interest showed by banks in mutual funds is justified by the market's high growth potential - it could exceed 1 billion euros in the next three years, according to analysts.
"The interest is explained by the high growth potential of this market segment, both in terms of assets and in terms of profitability. Integrated financial groups, especially those retail-oriented, benefit from the advantage of easy access to the targeted clients, while the investment funds complete their offer of value added products," argues Radu Hanga, general manager of BT Asset Management, the investment management arm of Banca Transilvania.
In late August, mutual fund assets exceeded 140 million euros, with some 96.5 million euros being controlled by the banks' investment management divisions. Last year, banks managed only 40 million euros, out of 70 million euros.
This surge was triggered by the emergence of new players, with strong financial groups such as Bancpost, HVB Bank, Banca Transilvania and Raiffeisen Bank behind them, as BCR and BRD already held strong positions. Thus, the number of banks operating on the mutual funds market rose to 6, while a series of smaller banks such as Finansbank and Piraeus Bank have also voiced plans to enter the market.
BCR Asset Management, the investment management arm of BCR, ranks first on the market, with assets amounting to almost 29 million euros in late August, and a market share of 20.6%.
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