2024-09-21 19:47:34
The coronavirus pandemic has created new challenges and difficulties for the global economy. The crisis spread to almost all sectors, creating all the prerequisites for a deep economic recession. Armenia was also not spared from economic difficulties.
“Due to the coronavirus epidemic, in the first half of 2020, the world economy entered an unprecedented deep crisis. According to the latest forecasts, the global economic decline in 2020 will be minus 4.3%. In some countries, the decline can even reach double digits. Armenia, being a part of the global economy, also reacted negatively. A combination of monetary and fiscal stimulus will help stimulate the global economy. However, as was the case with the epidemic cycle, economic recovery will also occur in successive stages. In other words, they will be restored in different periods and at different speeds.
After a deep decline in Q1 2020, global financial markets started Q2 on a positive note, driven by an unprecedented amount of support from various governments and central banks. As a result, during the entire 2nd quarter, risk assets, especially stocks, recovered quite quickly, even faster than expected. The Armenian financial market also responded positively. In particular, a certain decline was recorded in the 1st quarter of the year, but it recovered during the 2nd quarter, expressed by the stabilization of the exchange rate and the increase in bond prices.
All the mentioned factors contributed to the recovery of the yield of the pension funds managed by Amundi-AKBA, the average annual index of which as of the end of June 2020 ranged from 8.8 to 9.3%, depending on the type of fund. Only during the 2nd quarter of this year, the amount of assets of the pension funds managed by Amundi-AKBA increased by about 10% or 14 billion drams, amounting to more than 149 billion drams as of the end of June. This increase is due to both social contributions by participants and positive returns. If we summarize in one word, the profitability of the funds has almost completely recovered, but it is still too early to assume that we will not have another decline, because the uncertainties caused by the coronavirus epidemic are still ongoing. A possible second wave of the pandemic, as well as possible geopolitical risks and higher debt levels, are factors that could lead to greater volatility in the near term. This crisis proved once again the viability and flexibility of the approaches used by the French Amundi and localized by the Armenian Amundi-AKBA in the fund management process, which is based on the key principles of selectivity and diversification. diversification by countries and regions, currencies, asset classes, securities and issuers.
“Amundi-AKBA Asset Management” PJSC was founded by AKBA Bank and the French company “Amundi”, the leading European asset manager.
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