Monday, September 15, 2014

Six years after the collapse of Lehman Brothers funds are still doing their losses – Polish Radio

Six years after the collapse of Lehman Brothers funds are still doing their losses – Polish Radio


  Former Lehman Brothers headquarters in New York , photo: Photo .: Flickrm, lic. CC, sdufaux
 

six years have passed since the fall of the fourth world’s largest investment bank Lehman Brothers. The event took place exactly 15 September 2008 and in terms of mainly symbolic, but not only, is referred to as the culmination of the financial crisis of 2007-2009. The fact that the world stood on the brink, we know already of the many books or movies that were created on this topic. Stock exchanges around the world have reacted to this event and the consequences resulting therefrom, steep drop. In Poland, the index of the largest and most liquid companies in the Warsaw Stock Exchange, WIG 20, fell over the next five months, ie until mid-February 2009, about 46 percent.

Funds are already on the rise

After six years of these spectacular events, almost all categories of investment funds offered by the national institutions are on the rise. The highest rate of return record these funds, which invest in assets denominated in foreign currencies, which significantly helped to weaken the zloty. Thanks to the growth rate of the American currency by almost 40 percent., Both equity funds and bond American participants brought substantial profits. The first earned an average of 87.8 per cent., The second – 82.8 percent.

Gold is weaker

The zloty weakened also against the common European currency, but to a lesser extent (25 percent.). Hence, the next in order of the highest rates in the statement of reimbursement funds are shares and debt securities denominated in the common European currency. Here preferably fared bond funds denominated in euro – an average of 55.3 percent. profit. Aggressive investing equity funds European developed markets earned 46.5 percent.

Bond funds offer earn

Funds which invest the money entrusted to them primarily on the Polish capital market , by far the best results yielded bond funds, both those universal (an average of 45.1 per cent.) and bills (an average of 44.6 per cent.). Occupy the lowest position statement, unfortunately, Polish and mixed equity funds, although it should be noted that all the subcategories in the two groups of funds recorded positive average rate of return. Although attention is drawn to an extremely poor attitude mixed funds active asset allocation, which on average during these six years have grossed barely 4.9 percent.

Foreign equities funds Dołuje

The only group of funds, which are still in negative territory, the foreign equity funds real estate sector – an average of minus 24.9 percent. However, this is a relatively small group, consisting of only three funds, managing a total of approx. 100 million zł, but in September 2008, there were five, and the sum of their assets reached almost 0.5 billion zł.

The worst part was later

You can not forget, however, that the bankruptcy of Lehman Brothers was the highlight, and declines in the stock markets began much earlier. On the Warsaw Stock Exchange WIG 20 the previous bull market peak recorded accurately October 29th, 2007. From that moment until mid-September of the following year, that is, to notice the collapse of Lehman, could fall by more than 37 percent. In total, during the entire bear market, which lasted from late October 2007 to mid-February 2009 WIG20 fell from almost 3920 points to below 1,330 points, or as much as two-thirds.

America bounced off the first

The majority of equity funds all the time not worked yet bear market losses in the years 2007-2009. Ironically, this has been only the holders of shares of American Funds, from where the financial crisis was born, grew and exploded in full force. The holders of fund units, shares of American record average gain of 43.8 per cent., Although it is not entirely merit increases on American stock exchanges, and Polish investors earned an extra on weakening domestic currency.

Hossa in the debt market

Very good results were recorded Polish bond funds. Universal bond funds and Treasury through the entire bear market today, that is, for almost seven years, earned an average of approx. 50 percent. This means an average annual rate of return on a decent level of approx. 5,9-6 percent. This confirms that apart from a few cases, generally deserve the opinion of the funds with a relatively safe investment policy.

Far over the records

Still very much to return to levels from the peak of the previous bull market funds missing Polish shares. So far, none of them managed to return to the valuation of the units to the level of the end of October 2007. Nearby this feature JUMP Action, the outcome of which since then is minus 3.4 percent., ING Shares 2 (-5.7 per cent.), Noble Fund Shares (12.7 percent.) And Legg Mason Equity (-12.9 per cent.) – all data on September 9, 2014.

As a group, equity funds Polish Universal still lose an average of 23.9 per cent., and the funds of Polish small and medium-sized companies 30.3 percent. And this despite the fact that WIG20 from the end of the bear market still gained almost 90 percent. The historical maximum still lacks many points. To achieve them, would from now gain even further close to 60 percent.

Wieslaw Thor: Today, the effects would be even worse

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