Slovenian Mutual Funds Asset Structure – June 2022

By the end of June 2022, the total AUM (Assets Under Management) of Slovenian mutual funds equaled EUR 3.89bn, which is a decrease of 4.5% MoM, 10.4% YTD, and only a tiny increase of 0.1% YoY.

The Slovenian Securities Market Agency has published its report on the changes recorded by the Slovenian mutual funds in June 2022. According to it, at the end of the month, the Slovenian mutual funds had a total of EUR 3.89bn of AUM, representing a noteworthy decrease of 4.5% MoM, and a 10.4% YTD. Considering the current situation in Europe with rising inflation rates, the geopolitical situation in Ukraine and the expected increases of interest rates by the ECB, the AUM decreased both as a result of the loss of value of investments, as well as the lower net contributions into the funds, in fact, the lowest net contributions since November 2020.

Equity holdings of Slovenian UCITS funds (EURm)

This decline continues the negative trend we have witnessed in the global capital markets (but especially in America and Europe). Looking at the changes experienced by domestic and foreign equity holdings, we can see that this trend is present in both cases. In June 2022, domestic equity holdings amounted to EUR 61.1m, a decrease of 4.8% MoM, and 4% YoY. Foreign equity, which accounts for the vast majority of equity holdings at 97.7%, decreased by 4.9% MoM, and 1.6% YoY.

Taking a look at the asset structure of the funds, in May, shares accounted for 68.9% (or EUR 2.68bn) of the total holdings, representing a decrease of 0.3% p.p. MoM, and 1.3% p.p. YoY. Next up, we have bond holdings, which at EUR 636.3m account for 16.4% of the total holdings, while at the same time, representing an increase of 0.5 p.p. MoM, 0.6 p.p. YoY. The 3rd largest category by assets, money market, deposits, and cash, at 8.1% (or EUR 312.9m) of the total, experienced the largest increase in both MoM and YoY, at 0.6 p.p. and 2.2. p.p., respectively. Finally, investment funds, which at EUR 238.4m account for 6.1% of the total, decrease by 0.6 p,p. MoM, and 1.6 p.p. YoY.

Total assets of Slovenian mutual funds (EURbn)

Again, we can see a clear trend in the data here, which shows us that riskier types of assets like shares, and investment funds (which again, hold shares in their portfolio), are losing their total AUM, while “safer” options, like bond investments and cash itself (the most liquid form of assets), are being favored. As we already mentioned, the decline in AUM is not the only thing affecting the mutual funds, as there has been a strong drop in net contributions, with them amounting to only EUR 4.97m during the month, which itself also contributed to the decline on the TTM (trailing twelve months) basis. If we looked at this data, in the last twelve months, the total net contributions amounted to EUR 332.9m, a decrease of 3.5% compared to the same period a year earlier. However, it should be noted that there are some positive news for the mutual funds, as they have increased the total number of subscribers to 502,521, an increase of 4.2% YoY.

Net contributions in Slovenian mutual funds (EURm)

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