As of end June 2021, NAV of Croatian Mandatory Pension funds amounted to HRK 126.4bn.
As Pension funds could be seen as the key player on the Croatian capital market, it is worth seeing how they have performed since the beginning of 2021.
NAV of pension funds has witnessed a steady increase for 14th consecutive month, and as of end June stood at HRK 126.4bn (+12% YoY or HRK 13.51bn). To put things into a perspective, such NAV is converging very closely to the entire equity market cap of the Zagreb Stock Exchange. We note that on a YTD basis, NAV is up by 6.2%.
Looking at the MoM performance, NAV of Mandatory Pension funds is up by 0.9%, which is around the average of the increases so far this year.
Looking at the asset composition of pension funds, one can notice that bonds account for the vast majority of total assets (61.82%) which as of end April amounted to HRK 80.03bn. We note that bond holdings observed a MoM increase of 0.3% (or HRK 4.3bn). Such an+ increase followed after 3 consecutive months of decrease.
Shares come next, with 19.56% or HRK 24.32bn, representing an increase of as much as 2.2% MoM (or 543.9m). Part of that mentioned increase came from foreign equity (+2.5% MoM or HRK 270.2m). Meanwhile, domestic equity witnessed a solid increase of 2%. Note that domestic equity accounts for 56.2% of total equity holdings. On the other hand, in the bond market, the domestic bonds hold vast majority with 95.7%.
Total Assets of Croatian Mandatory Pension Funds (2018 – June 2021) (HRK bn)
Source: HANFA, InterCapital Research