Market of investment funds dropped by 2.3% in 2016
The market of investment funds suffered a slight drop last year. According to data from the Albanian Financial Supervisory Authority, the total assets at the end of the year fell to 65 billion ALL, about 2.3% less compared with the end of 2015.
This market drop came especially from reduced domestic investment in bonds of Albanian Government, which, however, still continue to comprise the majority of the assets market.
Meanwhile, a significant upward trend was registered in bond investments abroad, especially in bonds of companies. This refers to the need for investors to find profitable alternatives funds in euro, given that nominal interest rates were around zero.
Starting from 2015, the growth rates of investment funds appear more limited and this is related, in part, with the strengthening of the supervisory framework for these institutions by the Financial Supervisory Authority.
The setting of specific requirements for parameters of liquidity funds has prompted an increasing controlled growth.
At the end of last year, the number of individuals that had membership in investment funds was 29 thousand, down by 9% compared with a year ago.
The decline in the number of members may have decreased due to a drop of return on investment.
The interests of financial instruments last year dropped to historic low levels, which seems to have made them hungry for public funds.
Currently, three companies are operating in the market of investment funds, Raiffeisen Prestige, Raiffeisen Invest and Credins Premium.