Equity fundsî€™ fight to beat Stock Exchange declines
In the first half, the main index of the market, BET-C, lost 29% of its value, while BET-FI, the index gauging the performance of the SIFs, dropped by 40%.
Under the circumstances, an exposure of over 80% on the Stock Exchange, typical to equity funds, would have brought significant losses to the equity fund. Equity funds invest over 66% of assets in shares.
It can be viewed as a bet that the market will continue to fall,” said Florin Dolea, CEO of Pioneer Asset Management.
Managers were not so interested in placements on foreign markets meant to counteract domestic market declines, which were among the steepest in the region. BCR Asset Management and Raiffeisen Asset Management were the only managers that invested on foreign markets.