Dan Nicu, BRD Asset Management: Money market and fixed income instruments remain attractive

Reporter: What is your opinion on the evolution of investment funds in 2011?

Dan Nicu: In spite of the unfavorable last three years, the evolution of the mutual fund market was remarkable. Over the last three years, the Romanian market for OPCVMs (ed. note: collective institutions for investing in securities) increased in terms of the assets under management from 940 million lei at the end of 2008, to 7.9 billion lei on December 31st, 2011. Also, the market grew 45.4% in 2011, due to the fact that new products entered the market.

Reporter: Which factors affected their evolution?

Dan Nicu: Substantial increases were seen on the money market and bond segments as the majority of investors turned to products with lower risk.

Reporter: In your opinion, what were the highs and the lows of 2011 on the market for investment funds?

Dan Nicu: One of the best things about 2011 was the fact that the increase in the salesforce used for selling money market and bonds and fixed income funds through the banks' distribution networks, and the improvement in the perception and the information that investors have about this category of investments.

The drawbacks were seen especially in the area of stock-based funds or diversified with greater or smaller exposure to the stock market which had an unsatisfactory and completely unpredictable evolution in 2011, without any direct connection to the economic and financial ratios of the companies listed on those markets.

Reporter: What types of funds did investors favor last year and why?

Dan Nicu: Overall, funds with a lower volatility were last year's favorites, as they matched the profile of investors with a low risk tolerance.

Reporter: What are the plans/targets of your company this year?

Dan Nicu: To continue growing the market share in a healthy manner by attracting new investors and resources, including by diversifying the range of products.

Reporter: What are the funds you would recommend for investors in 2012?

Dan Nicu: The funds which are the best match for their expectations both in terms of the expected performance and of the risks and recommended duration of the investments. For the year 2012 I think that the funds which invest in the money market and fixed income instruments remain the best.