Romania is the first Eastern European country to adopt the new category standards, which reflects the maturation of the country and its getting closer to the situation of similar funds elsewhere in the European Union, where the investment funds operate according to the same classification, says Director General of the European Fund and Asset Management Association (EFAMA) Peter de Proft.
The EFAMA standard, voluntarily adopted by Romanian fund trustees, divides the open-ended Undertakings for Collective Investments in Transferable Securities (UCITS), known by their Romanian acronym OPCVM, in standard UCITS and UCITS investing in short-term treasury bills (maturing in under 60 days), says AAF Deputy Chairman Dragos Neascu.
The Romanian fund trustees had until end-January 2010 to opt for the category and type of UCITS that best describe their business. They now have until June 2010 to provide a classification for the category and type of their funds. There are 51 open-ended funds and 13 close funds currently operating in Romania.
According to Neacsu, the new categorisation provides investors with a better picture of what they may buy and an easier time comparing the existing funds and their performance, including the portfolios involved and their risks.