As of the end of October 2021, the NAV of Croatian UCITS funds stood at HRK 21.69bn (25.6% YoY)
With the asset managers playing such an important role in the Croatian capital market, it is interesting to see how well they performed since the beginning of 2021. As can be seen from the graph below, NAV of all funds has continued its steady increase for the 19th consecutive month, and as of October 2021 stood at HRK 21.69bn (+0.8% Mom or +25.6% YoY).
The largest absolute increase on a YTD basis of AUM was observed in bonds, which grew by HRK 793.9m (+6.8%). Deposits and cash followed with HRK 760m (+17%), followed by shares with an increase of HRK 737.7m (+42%), and investment funds with an absolute increase of HRK 639.2m (+81%). On a MoM basis, shares and investment funds recorded the highest absolute increase at HRK 125m (+5%) and HRK 94.6m (+7%), respectively.
When taking a look at the asset composition of Croatian UCITS funds, investment funds have noted a slight increase in AUM of 2.3% and currently hold 6.4% of total AUM, which is higher than the 10y average of 2.9%.
We also note that domestic shares account for 25% of the total equity holdings. Domestic equity has thus far in 2021 seen a 25% YTD increase, while foreign equity experienced a 49.4% YTD increase.
Bond holdings continue their trend as the largest asset class of the Croatian UCITS funds, accounting for 56.5% of total AUM. This represents a decrease of -5.7 p.p. YTD. This is due to the increases in other asset classes like investment funds, shares, and loans on the money market. Bonds did experience a relatively small YTD increase in its assets, with them amounting to HRK 12.53bn (+6.8% YTD).
Total Assets of All Croatian UCITS funds (2015 – October 2021) (EUR m)
Source: HANFA, InterCapital Research
Net contributions in October amounted to HRK 79.5m, reaching a total of HRK 3.22bn YTD. When comparing it with the pandemic year of 2020 when net contributions in the ten months of 2020 were at HRK -5.63bn, strong improvement can be seen in 2021. In the ten months of 2021, 50.7% of net contributions went to the bond market, that is, HRK 1.63bn. Other types of investment funds grew as well, with net contributions amounting to HRK 610.4m.
