Net Assets of OPCVM Reach New Record in August 2024
The net assets of OPCVM (Open-Ended Investment Companies) reached a new record in August 2024, totaling 6,528.8 billion dinars. Over the past month, the 125 funds attracted an additional 126.1 billion dinars, primarily in bond vehicles (115.5 billion dinars), mixed funds (9.8 billion dinars), and equity funds (0.7 billion dinars). Since the beginning of the year, the growth has been 867.5 billion dinars, thanks to a net collection of 820.4 billion dinars by bond funds.
The success of these funds can be attributed to their ability to offer a higher return than traditional savings, while providing a liquidity option. The rise in interest rates and the succession of public and private debt issuances have enabled these vehicles to attract impressive liquidity. Although this has absorbed a significant amount of cash at the expense of other economic agents, the growth of collective savings is a positive sign for the financial market.
These statistics guarantee the success of the subscription of the third tranche of the national loan. We believe that the billion-dinar threshold will be exceeded once again this year. Even when interest rates begin to decline, which will happen sooner or later, OPCVMs could still increase the performance gap compared to bank offers. Managers have the challenging task of making wise investment choices to convince investors of the sustainability of their performances.
It is worth noting that this context is not favorable to the primary capital market, as valuations are mechanically penalized. Without being constrained by a cash-out or restructuring plan, no company would consider going public in the short term.
