Investment fund market (TFI PZU)

Market situation

At the end of 2016, the funds managed by domestic investment funds amounted to PLN 259 billion, in comparison with PLN 252 billion at the end of the previous year – which means a growth by almost 2.7%.

Investments funds - share in assets as at 31.12.2016 (in %)

Source: IZFiA

In 2016, according to the estimates of Analizy Online, the balance of payments and withdrawals from retail funds offered by TFI on the domestic market amounted to almost PLN 5 billion. Clients showed highest interest in the absolute rate of return funds (with inflows of over PLN +3 billion), cash and monetary funds (payments to which amounted to nearly PLN +3 billion), and debt funds (nearly PLN +2 billion). The stock funds proved to be the worst, with balance of redemptions of PLN -3 billion.

Activities of TFI PZU

The operations on the investment fund market in the scope of the PZU Group are carried out by Investment Fund Association PZU (TFI PZU). It offers products and services to both mass market and institutional customers, including additional investment/savings programs within pillar III of the social insurance system: Individual Pension Account (IKE), Specialized Investment Programs, Employee Pension Programs (PPE), and Corporate Investment Programs (ZPI).

At the end of 2016, TFI PZU had 29 funds and sub-funds in its portfolio, of which 22 were offered to clients from outside PZU Group.

At the end of 2016, TFI PZU had 29 funds and sub-funds in its portfolio, of which 22 were offered to clients from outside PZU Group.

At the end of 2016, TFI PZU managed net assets of over PLN 22 billion giving a market share of 8.6%. This makes TFI PZU one of the biggest Investment Funds in Poland – as at 31 December 2016, it was classified in the second place according to the report of the Fund and Asset Management Chamber (IZFiA). TFI PZU is also the leader in the segment of employee pension programs among institutions operating on this market – with net assets worth nearly PLN 4 billion.

TFI PZU is one of the biggest Investment Funds in Poland. At the end of 2016, TFI PZU managed net assets of over PLN 22 billion giving a market share of 8.6%.

A drop in the total value of the net assets of TFI PZU recorded at the end of 2016 resulted mainly from redemptions made by PZU Group within FIZ Dynamiczny fund (PLN -1 billion) and SFIO Universum fund (PLN -6 billion).

However, in 2016, without taking into consideration the effect mentioned above, TFI PZU recorded a growth in the value of assets of external clients, which resulted mainly from:

  • active sales of funds and sub-funds – with a notable distinction of funds including share components,
  • increasing effectivity of cooperation with distributors,
  • introducing new Employee Pension Programs and Group Pension Programs,
  • investment results generated by the fund managers.

Net assets of TFI PZU (PLN billion)

Source: IZFiA 

Rates of return from investment funds of TFI PZU in 2016 (in %)

Source: IZFiA

Factors, including risks and dangers, which will impact the activities of investment funds in 2017

The condition and results of the investment fund market will primarily depend on:

  • political situation – including the results of elections in Germany and France,
  • activity of central banks – mainly the American Fed (expected raises in interest rates) and European Central Bank (another round of quantitative easing),
  • economic climate on the global capital market,
  • local factors – the future of OPFs or inflation (which influences i.a. attractiveness of bank deposits and profitability of instruments).
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