Slovenian Mutual Funds Asset Structure – May 2022

At the end of May 2022, the total assets under management of Slovenian mutual funds amounted to EUR 4.07bn, representing a decrease of -0.4% MoM, -6.1% YTD, but an increase of 9.3% YoY.

Slovenian Securities Market Agency has published the monthly report on the developments recorded by the Slovenian mutual funds. According to the report, in May 2022, the Slovenian mutual funds had a total of EUR 4.07bn of assets under management (AUM). This would mean that during May, they recorded a decrease of -0.4% MoM, -6.1% YTD, but an increase of 9.3% YoY. The decline on a YTD basis is especially interesting, as it points toward the current situation in the capital markets, high inflation, and the rising interest rates (both by the Fed and ECB in order to counter the inflation), making investments in the riskier types of assets (such as stocks) even riskier.

Equity holdings of Slovenian UCITS funds (EURm)

The trend of declining AUM of the Slovenian mutual funds can be observed in both the domestic as well as foreign equity holdings. This would mean that in May, domestic equity holdings decreased by -3.8% MoM, -0.8% YoY, while foreign equity holdings decreased by -0.9% MoM, but still maintained some of their growth from last year, meaning they grew by 8.2% YoY. In absolute amounts, domestic equity holdings amounted to EUR 64.2m, while foreign equity holdings amounted to EUR 2.75bn.

Taking a look at the asset structure of the funds, during May, shares amounted to 69.2% (or EUR 2.81bn) of the total AUM, representing a decrease of -0.4% MoM, -0.8% YoY. Following them, we have bonds, which amounted to 15.8% of the total AUM, or EUR 645.5m in absolute amounts, representing roughly the same level MoM, but a decrease of -0.3% YoY. Next up, we have the Money market, deposits & cash, which holds 7.5% (or EUR 303.9m) of the total AUM, representing an increase of 0.3% MoM, 1.9% YoY. Finally, we have Investment funds, whose AUM amounted to EUR 272.3m (or 6.7% of the total AUM), representing a decrease of -0.1% MoM, and -1.2% YoY.

Total assets of Slovenian mutual funds (EURbn)

This information does point to the general trend that we have seen in the capital markets since the beginning of the year, i.e. the decrease in almost all types of investments (stocks, bonds, inv. funds), but at the same time, an increase of holdings in the money market or in the form of cash. With the current inflationary pressures only increasing, the expected rise in interest rates (already signaled by the ECB) will end the era of so-called „cheap money“, meaning that investments, especially into riskier assets, will, unfortunately, have to be reduced.

However, even with these trends, the net contributions into funds are continually rising, amounting to EUR 21m in May. This is especially evident if we look at the data for the last twelve months, as the net contributions during this period amounted to EUR 365.4m, representing an increase of 13.7% over the period in 2021. At the same time, the total number of subscribers also increased, reaching 501,205 (breaching half a million for the first time), which would mean that on a YoY basis, total subscribers grew by 4.5%.

Net contributions in Slovenian mutual funds (EURm)

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