The investment funds sector
In 2013, the upward trend on the domestic investment fund market increased. Funds’ assets increased by PLN 42.7 billion (29.2% y/y) and amounted to PLN 188.9 billion, compared with lower increase in 2012 (+ PLN 31.3 billion, 27.2% y/y). This was a result of a high net inflow of new funds (PLN 30.3 billion compared with PLN 19.1 billion in 2012), accompanied by a smaller inflow of valuation results (ca. PLN 9.4 billion compared with PLN 10.7 billion in 2012). Significant impact on the market of investment funds had a good situation on the Warsaw Stock Exchange, despite its variability, and the historically low level of basic interest rates.
The situation on the investment fund market caused that fund units have been a significant competition for retail deposits, which affected the structure of household savings. In 2013 the retail investment fund market received net funds in amount of PLN 16.1 billion (PLN 2.1 billion in 2012). The positive upturn on the investment funds market affected non-interest income of banks participating in distribution of the investment fund’s units.
In 2013, as in 2012, the highest net inflow was recorded for non-public asset funds (+ PLN 15.5 billion). Cash funds (+ PLN 6.9 billion) and domestic shares funds (+ PLN 3.1 billion) recorded a high net inflow against the significantly lower inflow, than in 2012, of debt funds PLN 1.8 billion compared with PLN 13.7 billion the year before.
The market of open pension funds
Significant decrease in the growth rate of open pension funds’ assets (OPF) was recorded in 2013 (11.0% y/y compared with 20% y/y in 2012). The value of the open pension funds’ assets increased by PLN 29.7 billion to PLN 299.3 billion, compared with the increase by PLN 45.2 billion in 2012. The situation in the OPF market was influenced by the situation on the Warsaw Stock Exchange (despite fluctuations the WIG index increased by 8.1% y/y compared with an increase of 26.2 y/y in 2012), affecting the valuation of accounting units. The increase in the value of assets in 2013 was also caused by the transfer of funds from the Social Insurance Institution (ZUS) to OPFs – ca. PLN 11 billion (compared to PLN 8.4 billion in 2012), which was a result of a slight increase in salaries and regulatory changes concerning the transfer of part of the pension contribution to OPFs (growth of the rate transferred to the funds from 2.3% to 2.8%).
In 2013, the market for open pension funds reported a change in the structure of the investment portfolio - significantly increased the share of shares. At the end of 2013 shares and treasury securities accounted for 42% of the portfolio (respectively PLN 124.8 billion and an increase of 7 pp. y/y and PLN 126.7 billion and a decrease of 3 pp. y/y). The shares of PKO Bank Polski SA prevailed in the OPF share portfolio structure. In 2013 OPFs operated in a situation of uncertainty of the effects of the upcoming regulatory changes related to the necessity of a single transfer of assets to the state pension system in 2014.
In 2013 the number of the OPFs participants increased to ca. 16.4 million people (an increase by 435 thousand compared with 449 thousand in 2012).
The lease market
After a period of slowdown in the development of the lease market in 2012, in 2013 there was a revival. The value of assets financed by lease firms increased in 2013 by 13% y/y to PLN 35.3 billion (compared with an increase of 0.3% in 2012). Leasing of vehicles had the greatest positive effect on the lease market development (an increase in value of assets of 22.9% y/y to PLN 20.7 billion). Significantly lower growth was recorded in leasing of machinery and equipment (3.4% y/y). The structure of the market was still dominated by leasing of movable properties constituting 95.4% (previous year 95.3%).
Leasing constituted a significant source of financing of activities of enterprises. The value of lease-financed assets in 2013 was more than 3-times higher than the value of the increase in loans granted by banks to non-financial corporate entities for investment purposes and for real property.
Leasing market operated in an anticipated tax changes, including the write-off of VAT for cars with heavy truck type-approval.
The factoring market
In 2013, the factoring market grew slower than in 2012. The turnover of factoring firms increased by 15.8% y/y in 2013. The amount of receivables financed by factoring firms from the entire sector increased to ca. PLN 131 billion.
In 2013 the sector has recorded an increase in demand for services (the number of customers increased by 15.6% y/y and the number of debtors of the factoring firms that belong to the Polish Factors Association increased by 19.3% y/y).
The level of saturation of the polish factoring sector measured by the rate of GDP penetration in 2013 was higher than the world average, but still lower than the European average.