The Attractiveness of Harmonized Investment Funds Evidence on Romanian Investment Fund Market
This paper explores the latest trends in Romanian investment fund industry by examining the investors’ prudentially behavior before and after the crisis. We focus our study on a data set from the Romanian National Securities Commission (abr. CNVMR), with evidence on quarterly data on net sales value, number of units of funds and number of investors. This study provides two contributions. First, it presents the newest UCITS regulations to maintain investors’ trust in these investment vehicles. On the other hand, it provides a comparative analysis on open-end and close-end funds evidence. As a result, the paper concludes that open funds are more attractive for the domestic capital as compared to closed funds, but their evolution according to the preference for certain types is rather similar, in the sense that money market or diversified funds are preferred, as they offer a higher degree of certainty during crisis periods.
Shifting investments strategy from equity funds to money market funds – the case of Romanian open - end fund market during the financial crisis
Mutual funds are one of the key suppliers of liquidity in Romanian capital market. This paper uses quarterly data on Romanian openend funds starting with 2006 until 2010. We find that significant negative flows (outflows) were registered beginning with the end of 2007 (equity funds), during 2008 (equity funds, balanced funds, other funds and bond funds in the last 2 quarters of the year) and from 2009 to 2010 (in the case of money market funds). There is evidence that the changing market conditions attract differently the incoming flows in these mutual funds. This is the reason why such perturbations affect investors’ confidence for these investment vehicles and impose the reorientation of the investment funds and of their investors to other alternatives in order to preserve their capital.
An insider's view
Deep Interior of the Earth.By J. A. Jacobs J. A. Chapman and Hall 1991. Pp. 167. £24.95, $39.95.