* Czech fund assets may grow 10 pct this year
* Sees slight shift to equities
* Eyes euro zone stability, says euro adoption would be plus
By Robert Mueller
PRAGUE, March 25th (Reuters) - The volume of assets managed
by Czech funds may grow by up to 10 percent this year, with
portfolios slightly shifting in favour of equities, the head of
the Czech Capital Market Association (AKAT) said on Thursday.
The association members supervised 753.2 billion crowns
(USD 39.6 billion) in assets as of the end of 2009, a 4.2
percent increase from the previous year.
"We see the next one to three years as very positive,
although the economy should be rather stable, without any
dramatic growth," Josef Benes, AKAT chairman, told Reuters on
Wednesday.
"We expect the total assets should grow by up to 10 percent
in 2010, with the main driver being private banking."
The small and open Czech economy shrank by 4.1 percent last
year, when it was hit by the full impact of the global crisis,
which dampened demand in its export markets, especially Germany.
The economy is expected to record modest grow this year,
however it is burdened by growing unemployment, which reached a
six-year high of 9.9 percent in February.
Benes, who is also chairman of the asset management
division of the largest Czech bank, CSOB, did not give further
details on the breakdown of how AKAT portfolios were positioned
and did not specify any preferred sectors or instruments.
However, he did say that with AKAT funds' exposure to
foreign assets above the single-digit-percent level, the
association members hoped the European Union would manage to
solve fiscal problems of member countries like Greece or
Portugal.
"Various proposals, such as the European Monetary Fund,
show the commitment of the big states to do something so we are
relying on the stability of the European and U.S. environment,"
he said.
The Czech Republic aims to enter the euro zone in 2015 or
2016, and Benes said having the euro would definitely be
positive for the Czech asset management business.
"I can compare the position of an asset manager working in
Slovakia in euros, and one working in the Czech Republic, and (I
can say) it would be a plus," he said.
The speed of preparations for the change to the euro will
be influenced by the outcome of general elections at the end of
May. The frontrunning Social Democrats are seen as more
committed to swapping crowns for the single currency.
Benes said that besides the possible stronger push towards
euro adoption, he does not expect any significant change in the
business environment stemming from any policy shift that would
result from a Social Democrat victory.
(Reporting by Robert Mueller)
