By the end of August 2023, the total NAV of all the Croatian mutual funds equaled EUR 2.06bn, decreasing by 0.4% MoM, and 8.1% YoY. Furthermore, compared to its pre-pandemic all-time high, this represents a decrease of 33.5%.
The latest monthly report on the developments and changes in the Croatian capital market has been released by HANFA (The Croatian Financial Services Supervisory Agency), for August 2023. In the report, we can see that the total NAV of the Croatian mutual funds amounted to EUR 2.06bn, representing a decrease of 0.4% MoM, but an increase of 8.1% YoY.
Starting off with the changes recorded by the asset structure of the funds, on a monthly basis, most of the categories recorded a decrease, with bond holdings decreasing the most, by EUR 12.5m or 1%, followed by inv. funds at EUR 4.1m, or 2%, as well as shares, at EUR 2.4m, or 0.7%. On the other hand, money market holdings recorded an increase of EUR 5.9m, or 22.7%, while deposits and cash remained roughly unchanged (-0.4% MoM). Moving on to the yearly basis, the largest increase was recorded by share holdings, which grew by EUR 74.9m, or 28.3%, followed by receivables at EUR 9m, or 190%, and inv. funds, at EUR 7.2m, or 3.6%. On the other hand, deposits and cash decreased significantly, by EUR 305m, or 59.2%.
Total assets of the Croatian mutual funds (2015 – August 2023, EURm)
Source: HANFA, InterCapital Research
In terms of the net contributions to the funds, in total, an increase of EUR 16m was recorded during the month. Of this, the largest increase was recorded by bond funds, which grew by EUR 19.2m, while on the other hand, balanced as well as other funds decreased by EUR 2.6m, and EUR 1.5m, respectively. As such, it could be said that the decline in the value of the bond holdings this month came from the decline in the underlying bond investments, which was somewhat mitigated by higher net contributions into the bond funds.
Securities and deposits make 97% of total NAV of funds (EUR 2bn), evidencing similar movement as NAV, being flat MoM (+0.02% MoM), and growing by EUR 68.8m, or 3.5% YoY. When looking at destiantion fo the investments, domestic securities and deposits amounted to EUR 831.4m, accounting for 41.3%. On a MoM basis, they grew by EUR 5.1m, or 0.6%, while on a YoY basis, they decreased by EUR 332.8m, or 28.6%. On the other hand, the foreign securities and deposits, which account for the remaining 58.7%, decreased by EUR 4.7m, or 0.4% MoM, but increased by EUR 401.7m, or 51.5% YoY. Here we can see that foreign securities and deposits were the main driver of the overall securities and deposits growth, while domestic ones decreased in value.
Finally, looking at the current asset structure of the funds, in August 2023, bond holdings still account for the vast majority of holdings, amounting to 61.3%, a decrease of 0.2 p.p. MoM, but an increase of 5.7 p.p. YoY. The 2nd place is held by shares, at 16.4%, with a decrease of 0.02 p.p. MoM, but an increase of 4.82 p.p. YoY. Following them, we have deposits and cash, as well as inv. funds, at 10.1% and 10% of the total, respectively. Deposits and cash recorded a MoM increase of 0.02 p.p., but a YoY decrease of 12.31 p.p., while inv. funds decreased by 0.14 p.p. MoM but increased by 1.27 p.p. YoY.
Current AUM of the Croatian mutual funds (August 2023, % of the total)
Source: HANFA, InterCapital Research
