Raiffeisen investiční společnost a.s., a 100% Raiffeisen Bank subsidiary, was founded on 21 December 2012 and began operating in 2013. In December 2014, it merged former Raiffeisen Capital Management CZK denominated funds.
Our current portfolio comprises 28 mutual funds (both UCITS* and AIFMD**) with an approximate assets under management (AUM) of CZK 49 billion. Notably, only one third of the Czech population actively invests, with a significant preference for bank accounts, representing around 60% (end of year 2023) of all private financial assets (PFA), growing at approximately 7% annually (4-year CAGR***). In contrast, investment products demonstrate robust growth dynamics at around 11% annually (4-year CAGR), a trend we anticipate will persist.
Regular investing is gaining traction, supported by the Czech government’s introduction of tax-exempted retirement investment options, known as long-term investment products, which are expected to bolster the popularity of long-term regular investing.
The Czech market is primarily dominated by banks and insurance groups, managing the majority of invested assets within their investment companies. Mutual funds grew AUM by 25% in 2023, which was the most succesful year so far. While there are emerging companies focusing on the ETF segment (Exchange Traded Funds), such as Portu and Fondee, these entities have yet to achieve critical mass.
* UCITS: The Undertakings for the Collective Investment in Transferable Securities (UCITS) is the European Commission's regulatory framework for managing and selling mutual funds. UCITS funds can be registered and sold in any country in the European Union using unified regulatory and investor protection requirements.
** AIFMD: The Alternative Investment Fund Managers Directive (AIFMD) is a European Union (EU) regulation that applies to alternative investments, many of which were left largely unchecked prior to the 2008-09 global financial crisis. The directive sets standards for marketing around raising private capital, remuneration policies, risk monitoring and reporting, as well as overall accountability.
*** CAGR: Stands for Compound average growth rate.
Source: Raiffeisen investiční společnost a.s. as of September 2024