Polish investment funds' AuM up by 1.2 pct m/m to PLN 379.5 bln in December
Poland's domestic mutual funds had PLN 379.5 billion (EUR 88.8 bln) in assets under management in December, up by PLN 4.4 billion (EUR 1.02 bln) or 1.2 percent month on month, according to chamber of fund and asset managers IZFiA's data.
In 2024, debt funds increased assets under management to PLN 153.6 billion (EUR 35.9 bln), up by PLN 42.6 billion (EUR 9.9 bln) or 38.3 percent year on year and fund market share by 6 percentage points to 40.5 percent.
In terms of annual growth (in percentage terms), Poland's employer-sponsored pension plans PPK funds recorded the largest increase in assets in 2024, growing 39.4 percent year on year, with assets reaching PLN 24.6 billion (EUR 5.8 bln) at the end of December (data for TFIs only, excluding PTEs and TUs).
"December was one of the weaker months of a pretty good 2024 for holders of mutual fund units and certificates. After the initial euphoria, a wave of sell-offs swept through the markets following, among other things, Jerome Powell's hawkish statement. The main indices of the US stock market as well as selected European indices recorded declines. Emerging markets fared slightly better, as well as the Japanese market or even our home floor," the report said.
As reported, gold was one of the worse performing investments in December, while yields on longer-term bonds rose markedly.
"As a result, only one in three investment funds generated a positive return in December. We estimate that management performance reduced domestic fund assets in the last month of last year by a total of approx. PLN 0.5 billion," it added.
Only non-retail funds recorded an advantage in withdrawals. In total, mutual funds raised PLN 3.3 billion (EUR 772.2 mln) net in December.
The data shows that, in total, almost 90 percent of the domestic investment funds analysed generated a positive return in 2024.
"We estimate that the management results increased the assets of domestic funds by a total of around PLN 13 billion in the whole of last year (compared to around PLN 27 billion in 2023)," they wrote.
"At the same time, a total of more than PLN 31 billion net inflows into debt funds last year, with short-term debt funds being the most successful, with clients depositing PLN 23.5 billion into them in 12 months. Both of these factors (management and sales performance) in 2024 increased the assets of debt funds by as much as PLN 42.6 billion (38 percent), to PLN 153.6 billion," they added.
According to the authors of the report, the stock markets were upbeat in 2024.
A slight increase in assets in December was recorded by mixed funds, while the largest nominal increase in assets in December was recorded by non-public asset funds.
As reported, a fall in assets was recorded by commodity funds, which both in December and over the whole of last year had a rather mixed performance.
An increase in assets, by PLN 482 million (EUR 112.8 mln) or 1.9 percent year on year, was recorded in December by PPK defined date funds.
The data shows that invariably, PKO TFI has the largest amount of net assets under management in the capital market segment, namely PLN 55.7 billion (EUR 13.03 bln). In second place is Goldman Sachs TFI, which has over PLN 33.1 billion (EUR 7.7 bln). In the non-public market, Ipopema TFI remains the leader, or PLN 53.1 billion (EUR 12.4 bln).
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