By the end of November 2023, the total NAV of the Croatian pension funds realized an increase of 2.2% MoM, and 11.8% YoY, reaching EUR 19.7bn.

According to the latest report released by the Croatian Financial Services Supervisory Agency, HANFA, the Croatian pension funds’ growth continued in November 2023, amounting to EUR 19.7bn in terms of the NAV. This represents an increase of 2.2% MoM and 11.8% YoY. This was supported by the growth in value of the assets held by the funds, which we will detail below, but also due to the net contributions to the funds. These amounted to EUR 110.3m in November, or EUR 1.14bn since the start of 2023 up until November.

Croatian mandatory pension funds AUM structure change (January 2018 – November 2023, EURm)

Source: HANFA, InterCapital Research

Taking a look at the assets that drove this growth, on a monthly basis, the largest increase was recorded by shares, which grew by EUR 161m, or 3.9%. Following them there are bonds at EUR 117m, or 0.9%, investment funds, at EUR 88m, or 4.3%, as well as other assets and deposits and cash, which grew by EUR 30m (or 114% MoM), and EUR 27.3m (or 5% MoM), respectively.

The story is a little bit different on a yearly basis, as here bonds have recorded the largest increase in value, at EUR 1.37bn, or 11.7%. Following them there are shares at EUR 794.5m, or 18%, as well as investment funds, at EUR 228.3m, or 11%. On the other hand, deposits and cash recorded the largest decrease, declining by EUR 346m, or 38%, followed by receivables at EUR -61m, or -52.2%.

Moving on to securities and deposits, they amounted to EUR 15.4bn in November 2023, growing by 1.34% MoM, and 6.5% YoY. Of this, domestic securities and deposits, which account for 89.2% of the total, grew by 0.9% MoM, and 5.4% YoY. Foreign securities and deposits, on the other hand, increased by 4.9% MoM, and 6.5% YoY.

Current AUM of Croatian mandatory pension funds (November 2023, % of the total)

Source: HANFA, InterCapital Research

Lastly, in terms of the current asset structure of the funds, bonds still make up the largest share, at 63.5% of the total, representing a decrease of 0.81 p.p. MoM, but an increase of 0.25 p.p. YoY. Following them there are shares at 22%, which grew by 0.34 p.p. MoM, and 1.92 p.p. YoY, as well as inv. funds, which accounted for 10.9% of the total, an increase of 0.22 p.p. MoM, while remaining roughly the same YoY.