Czechs increase investments in funds as NEMO fund reaches 11,000 investors

Investments in funds across the Czech Republic are seeing substantial growth. Data from the Capital Market Association (AKAT) indicates that the volume of assets in collective investment funds surged by CZK 46 billion in the second quarter of 2024. As of 30 June, Czech investments in these funds totaled CZK 1.064 trillion, with individual investors holding 89% of the volume. Real estate funds, in particular, have shown a strong upward trend, with assets increasing by CZK 2.6 billion in the same period. Among the standout performers is the NEMO real estate fund, founded by the investment group Českomoravská Nemovitostní, which focuses on office properties in Prague. Over the past 12 months, NEMO achieved a 6.38% return as of 30 September 2024.

The rising interest in fund investments, especially in real estate, is clearly reflected in NEMO’s success. “The growing confidence in NEMO is demonstrated by the increasing number of investors. The fund recently surpassed 11,000 investors, a significant milestone for us,” said Josef Eim, Vice-Chairman of the Board at Českomoravská Nemovitostní. NEMO aims to continue offering attractive investment opportunities for clients seeking reliable and profitable ways to grow their funds. “The popularity of dependable investment funds has steadily increased in recent years, as shown by the data from the Capital Market Association,” added Eim.

AKAT Chairman Jaromír Sladkovský also commented on the broader trends in the investment landscape. “In the second quarter of this year, the strong asset growth trend that began in 2023 persisted. We expect further interest rate cuts across key markets to sustain this growth. The recent sharp declines followed by a rapid recovery demonstrate investors’ confidence in the economy’s stability and growth potential,” said Sladkovský. The markets are currently factoring in a potential 100 basis point rate cut from the Czech National Bank over the next two years, which could further boost economic activity in the real estate sector.

The NEMO fund, which celebrated its five-year anniversary in June 2024, has become a prominent player in the Czech real estate investment market. Over this period, the fund has accumulated a significant portfolio, including properties such as the Apeiron office building, Corso Karlín, and the Aragonit office building. The value of assets under NEMO’s management now exceeds CZK 2.6 billion, and the fund plans to expand its portfolio of Prague office properties by the end of 2024.