NAV of Croatian Mandatory Pension Funds up by 1% in January 2021

As of end January 2021, NAV of Croatian Mandatory Pension funds amounted to HRK 120.24bn.

Pension funds could be seen as the key player on the Croatian capital market, as their current domestic equity holdings account for more than 40% of the free float market cap of ZSE. NAV of pension funds has witnessed a steady increase for each consecutive month since April, and as of end Jan stood at HRK 120.2bn (+5.9% YoY or HRK 6.66bn). To put things into a perspective, such NAV is converging very closely to the entire equity market cap of the Zagreb Stock Exchange (excluding PBZ – to be delisted).

Looking at the MoM performance, NAV of Mandatory Pension funds is up by 1%, showing an increase for the 10^th consecutive month. It is also worth adding that in January net contribution payments amounted to HRK 555.99m (+10% MoM).

Asset Structure of Croatian Mandatory Pension Funds (January 2021)

Source: Croatian Financial Services Supervisory Agency, InterCapital Research

Looking at the asset composition of pension funds, asset managers have not changed significantly their composition in 2020, which can be seen in the graph above. Bonds account for the vast majority of total assets (66.9%) which as of end 2020 amounted to HRK 80.82bn (increase of HRK 1.52bn YoY or 1.9%). Shares come next, with 18.5% or HRK 22.4bn, representing an increase of 1.7% MoM (or HRK 375.9m).

Total Assets of Croatian Mandatory Pension Funds (2018 – Jan 2021) (HRK bn)