The last three years have been a period of a very dynamic rise on the Warsaw Stock Exchange – the main WIG index has gained over 160% in this time. Clients who chose equities-oriented or mixed funds with a significant proportion of shares have gained most.
The last three years have been a period of a very dynamic rise on the Warsaw Stock Exchange – the main WIG index has gained over 160% in this time. Clients who chose equities-oriented or mixed funds with a significant proportion of shares have gained most.
Of the capital insurance funds offered by CU Poland Life Insurance Company, the one with particularly spectacular results is the Dynamic Fund.
"Every thousand zlotys clients invested in this fund three years ago has seen an increase in value to three thousand today. Bearing in mind that inflation has been only 7% over this period, clients’ assets have trebled in value. Another important factor is that the Dynamic Fund is consistently producing high rates of return and is at the head of the rankings. For fund managers who are comparatively rarely able to make so much for their clients, this is a cause for special professional satisfaction" said Marek Przybylski, general manager, CU Investment Management (Poland), the company that manages the assets of CU Life funds.
The last few years and quarters have also been satisfying for investors in the bond market. Rates of return on CU secure funds over the last 12 months and three and five years have been very good, and higher than the profits that may be obtained from alternative forms of investment. "Although a short-term adjustment in the equities market was inevitable after an almost 20% rise in the WIG index in the third quarter, in our view prospects for equities in Poland remain promising because of the forecast acceleration in economic improvement in the next few years", adds Marek Przybylski.
Rates of return of CU Life capital insurance funds at the end of Q 3 of 2005 [%]
| Fund | 3 months | 12 months | 3 years | 5 years |
| Money-Market | 0.98 | 5.53 | – | – |
| Guaranteed | 1.49 | 6.05 | 19.17 | 49.74 |
| Guaranteed Plus | 1.33 | 5.28 | 14.46 | – |
| Stable Growth | 2.80 | 11.43 | 30.30 | 77.11 |
| Balanced | 9.32 | 21.20 | 73.62 | 107.15 |
| Eurobalanced | 1.08 | 0.50 | – | – |
| International | 6.60 | 13.66 | 54.54 | 12.23 |
| CU – Equities Fund | 18.85 | 31.14 | 163.34 | 119.25 |
| Dynamic | 18.87 | 30.43 | 213.56 | 209.67 |
| PPE Stable Growth | 4.55 | 13.89 | 48.98 | – |
| PPE Bonds | 1.09 | 8.57 | – | – |
| PPE Balanced | 9.11 | – | – | – |
| PPE Equities | 18.81 | – | – | – |
| WIG | 19.30 | 33.77 | 164.13 | 100.21 |
| Inflation | 0.2 | 1.9 | 7.4 | 13.3 |
Along with the number of employee pension programmes (PPEs) that are being serviced, there has been a significant increase in capital funds set up specially with these programmes in mind. Under the PPE heading, CU Life offers four such funds with different investment profiles and anticipated levels of profit. "Employee pension programmes funds’ results are very favourable, but the almost 50% rate of return from the PPE Stable Growth Fund over the last three years is particularly worthy of note – emphasises Marek Przybylski. CU Life currently manages 72 employee pension programmes, and a further 48 are awaiting registration with the Insurance and Pension Funds Supervisory Commission, the market regulator.
A specialised company, Commercial Union Investment Management (Poland), manages the assets of the CU Life funds. It has licences from the Polish Securities and Exchanges Commission to manage securities portfolios and provide investment consultancy. It is the second largest asset management company in Poland by funds under management which amount to 10.5 billion zloties (Ł1.8 billion).
-ends-
Information:
Tel + 48 22 557 43 41
E-mail: bohdan_bialorucki@cu.com.pl
For further information, see www.cu.com.pl
Notes to editors:
Commercial Union Poland Group is part of the international Aviva group, the world’s sixth largest insurance, savings and investments group, and the largest in the United Kingdom by revenues. Aviva group operates in over 25 countries. It occupies a strong position in the European Union, including United Kingdom, Ireland, France, the Netherlands, Spain, Italy and Poland. Worldwide, Aviva group services over 30 million customers and manages assets valued at over Ł290 billion. For additional information, see the website http://www.aviva.com.