By the end of April 2023, the total NAV of Croatian mutual funds amounted to EUR 1.98bn, representing a decrease of 14.9% YoY, and 1.7% MoM.
Recently, HANFA published its latest monthly report on the changes recorded by the Croatian capital markets. In this overview, we bring you the latest data for Croatian mutual funds. At the end of April 2023, the NAV of all Croatian mutual funds amounted to EUR 1.98bn, a decrease of 1.7% MoM, and 14.9% YoY. Compared to its pre-COVID-19 maximum, the picture is even more bleak, with the funds losing 36% of their value since then.
Looking at the asset holdings of the funds, on an MoM basis, there were only several increases, with shareholdings growing by 1.7% (or EUR 5.1m), followed by investment funds, which grew by 1.2%, or EUR 2.5m. On the other hand, deposits and cash decreased the most, declining by 23%, or EUR 74.9m, while bond holdings also decreased, declining by 0.5%, or EUR 5.6m.
At the same time, on a YoY basis, the mutual funds recorded decreases across the majority of their categories. The largest decrease was recorded in deposits and cash, which decreased by EUR 233.9m, or 42%, followed by bonds, which decreased by EUR 154.8m, or 11.5%, as well as shares, which decreased by EUR 12m, or 3.8%, and finally, money market holdings, which decreased by EUR 9m, or 19%. The only category to record any kind of a notable increase was the investment funds, which grew by EUR 22.8m, or 12.5%.
Total assets of Croatian mutual funds (2015 – April 2023, EURm)
Source: HANFA, InterCapital Research
In terms of the net contributions to the funds, they increased by EUR 17.8m in April 2023. However, if we were to break this down, the majority of the fund types recorded more redemptions than contributions, with bond funds recording redemptions of EUR 39m, followed by balanced at EUR 4.3m. On the other hand, equity funds recorded a slight EUR 1.1m increase, while the main driver of the overall growth was the Other funds category, which increased by EUR 61.6m.
Meanwhile, securities and deposits amounted to EUR 249.8m in April 2023, a decrease of EUR 3m (or 1.2%) MoM, and EUR 21.9m (or 8.1%) YoY. Of this, domestic securities and deposits decreased by EUR 12.9m (or 10.8%) MoM, and EUR 56.7m (or 34.5%) YoY. On the other hand, foreign securities and deposits increased by EUR 9.9m (or 7.6%) MoM, and EUR 34.7m (or 32.3%) YoY, meaning that the overall decline came from domestic securities and deposits.
Finally, taking a look at the current asset structure of the mutual funds, bonds still hold the vast majority of the assets, at 59.4%, an increase of 1.8 p.p. MoM, and 4.2 p.p. YoY. However, this increase did not come due to the inherent expansion of bond asset holdings, but due to an overall decline in the NAV of the majority of the asset holdings. Following them, we have shares, which accounted for 15.4% of the total, an increase of 0.8 p.p. MoM, and 2.7 p.p. YoY, and deposits and cash, which account for 12.5% of the total, a decrease of 3.2 p.p. MoM, and 8.3 p.p. YoY. Lastly, we have the investment funds, which account for 10.4% of the total, an increase of 0.5 p.p. MoM, and 1.4 p.p. YoY.
Current AUM of Croatian mutual funds (April 2023, % of the total)
Source: HANFA, InterCapital Research
