Polish equity funds generated the highest average returns in 2023: +35%, and last year was the best year for them in terms of performance since at least 2011, Analizy.pl reported. In 2023, more than 500 of the approximately 800 domestic solutions generated double-digit returns.
On average, the highest rates of return in 2023 were generated by Polish equity funds (+35%), for which last year was the best year in terms of performance since at least 2011. The bull market on the WSE actually started in October 2022, but took a huge turn after the parliamentary elections held in Poland in October 2023. The opposition’s win was well received by investors, especially foreign ones, who count on, among other things, the unlocking of KPO funds and the depoliticisation of state-owned companies. Low valuations were also in favour of the WSE. And – according to experts – they are still an argument to invest in the Polish stock market, especially in the first half of 2024, according to the report.
In 2023, more than 500 of the approximately 800 domestic solutions generated double-digit returns. 5 domestic investment funds earned more than 50 per cent. Almost 20 funds gained more than 40 per cent during this period, and around 90 funds gave returns of more than 30 per cent. More than 20 per cent return, in turn, was earned by almost 160 funds, and less than 240 funds increased their portfolios by more than 10 per cent, the material mentioned.
In the case of US equity funds, the average rate of return was just under 22%, and in the case of global developed market shares it reached just under 19%. Meanwhile, European developed market equity funds gave earnings of 13.5%, Analizy.pl also reported.
The year 2023 was also exceptionally good for clients of debt funds, which are also the most popular among domestic investors. The best rates of return were earned by long-term Polish treasury debt securities funds, i.e. those with the highest interest rate risk. Their average return exceeded 14% and was the highest since 2012, when they earned an average of 12.5%, according to the report.
Slightly less, 13.4%, was gained by Polish long-term universal debt securities funds in 2023, which was also the best performance since 2012, when the average return in this group of products was 11.1%. The situation is similar for Polish treasury debt securities funds, Polish corporate debt securities funds and Polish universal debt securities funds. In these groups, returns were also in double digits and also the highest for 12 years, the report also indicated.
Experts have no doubt that 2024 will be favourable for those investing in debt markets. They list at least several arguments for a bull market: inflation is slowing down, the economy is slowing down and the world’s central banks have already completed the cycle of interest rate hikes and are preparing to loosen monetary policy, Analizy.pl stressed.
Spurce: Analizy.pl and ISBnews
