Furthermore, investments in the top 10 companies listed on the Bucharest Stock Exchange (BVB) led to a 30.4 percent loss in the H1 2008.
“Bond funds benefitted from increases in interest in this period, while a bank deposit made six months ago had a constant interest rate. Bond funds usually have lower long-term yields, compared to share funds, while in the short-run they can have higher yields than stock market investments,” said Florin Dolea, General Manager of Pioneer Asset Management.
Four of the eight local mutual funds with placements in bonds and two monetary funds had higher yields compared to the average interest rate for deposits in the past six months.
Given the significant decline of BVB quotations - 30.2 percent for the BET-C composite index - some share funds decided to protect their assets by investing in bonds.
