Record-Breaking Net Assets for Collective Investment Schemes in July 2024
6,528.8 MTND: A New High for OPCVM Net Assets
The collective investment scheme industry has reached a new milestone, with net assets totaling 6,528.8 MTND as of the end of July 2024. The ongoing dividend distribution season has significantly benefited the industry, allowing it to remain competitive against traditional banking and postal savings options, which offer a gross return of 7%. Many funds can now offer higher returns, net of fees.
Bond Funds Lead the Way
Bond funds have attracted the most investments, with net assets reaching 5,611.4 MTND. At this pace, their net assets are expected to surpass those of all OPCVMs by the end of 2023 within the next three months. The net collection for July 2024 totaled 108.1 MTND, bringing the year-to-date total to 704.9 MTND, a welcome trend for fund managers. Meanwhile, the net assets of Mixed and Equity OPCVMs stood at 902 MTND and 15.4 MTND, respectively.
A Potential Slowdown Ahead
Starting this month, we anticipate a slowdown in collections. With few companies still distributing dividends and the summer vacation season underway for both stock exchange intermediaries and clients, the priority will shift to preparing for the third tranche of the National Bond Issue. Reaching 7,000 MTND in net assets by the end of the year appears to be an ambitious goal, given the complex economic context. This would require average monthly net inflows of approximately 95 MTND, a challenging target. Nevertheless, the year has already been positive, and a net collection of 1 billion dinars is still within reach.
