Money market funds, which invest their clients’ money in bank
deposits and government securities, have been investor favorites in
the past year, reaching over 3.5 billion lei (EUR0.82 billion) in
assets.
The significant popularity of these funds lies with the low risk
involved and the aggressive marketing campaigns pursued by banks’
sales networks. The fact that banks lowered the interests they pay
on deposits was the main factor dragging down the yields of such
funds.
Top performer among money market funds is Certinvest Monetar, which yielded 7.90% in the last twelve months (June 30, 2010 – June 30, 2011), but below the annual inflation rate. So Certinvest Monetar’s actual yield is negative, of minus 0.03%.
A deposit opened in the summer of last year was rewarded with an interest of 7.25% a year on average, but some banks paid an interest of as much as 8.15% a year, while others offered 5%.
Yields above inflation, of up to 23.5% a year, were recorded by funds which invested in bank shares, in shares of the five regional investment funds or SIFs, as well as in other oil companies listed on the Bucharest Stock Exchange.