The competition on the Romanian mutual fund market will focus on investments in shares, after the investment management company of the largest bank in Romania, Banca Comerciala Romana (Romanian Commercial Bank - BCR) launches BCR Dinamic, a mutual fund set to invest half of its assets in listed securities, most likely at the beginning of the next week.
The other funds on the market are encouraged by the new legislation to invest larger amounts of money in shares and the gains or losses made by investors will come to depend more and more upon the skill of the administrators.
The National Securities Commission (CNVM) will most likely analyse BCR Asset Management's application for having the fund authorised this week. BCR Dinamic, set to come with 22bn ROL in initial asset, will be the largest stock market fund on the Romanian market right from the beginning, as the other two stock market funds' assets are worth less than 10bn ROL.
"Part of the investments in shares will follow the trend of a stock exchange index, such as BET or BET-FI, while the other shares in the portfolio will be those likely to go up, whose price we feel is undervalued," Doru Puiu Tiberiu, head of the management company said.
The other investments will be made in credit instruments, such as commercial paper, municipal bonds or government securities.
Another management company, i.e. Universal Asset Management, has already announced plans to launch the Actiuni Romanesti (Romanian Shares) fund, to invest solely in listed securities. The new stock market funds are trying to limit potential speculative intentions from their investors through repurchase fees. The investors will therefore have to keep the fund shares for a longer period of time if they want to gain. BCR Dinamic will charge the highest repurchase fee on the Romanian market, 10%, valid for the first 18 months from the purchase of the fund shares. The only exception to this rule are the investors that have their shares repurchased within the 18 months in order to invest with another fund managed by BCR Asset Management, as they will be required to pay 8% in redemption fee.
vlad.nicolaescu@zf.ro
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