After closing out the month of November 2022, Slovenian mutual funds AUM amounted to EUR 4.15bn, representing a decrease of 4.2% YTD, 0.8% YoY, but an increase of 4.3% MoM.
Recently, the Slovenian Securities Market Agency (ATVP) published the latest report on the changes recorded by the Slovenian mutual funds, for the month of November 2022. Looking at this data can show us how well these funds performed in 2022 thus far, a year marked by high uncertainty and volatility. In the report, we can see that by the end of November, Slovenian mutual funds assets under management (AUM) decreased by 4.2% YTD, 0.8% YoY, but also managed a somewhat decent recovery of 4.3% MoM, continuing the trend of positive MoM growth that started last month.
This increase can be attributed to several factors; first of all, even though the sentiment on the equity markets across the world is still largely negative, there are some signs that things aren’t as bad as they seem. The inflation rate in Slovenia increased to 10% YoY during the month, which is an increase of only 0.1 p.p. MoM. Furthermore, the price pressures in terms of oil&gas prices that are ever-present in Europe due to the continued war in Ukraine and the strong demand for these commodities during winter is still here. However, for the last couple of months, we have seen the stabilization of the prices, both due to the actions taken on the EU level and also due to a somewhat warmer-than-expected autumn. However, the primary pressure on the value of the assets will undoubtedly come from the ECB. As they have already hiked interest rates several times and are expected to continue in 2023, these pressures are expected to continue.
Coming back to the mutual funds themselves, the majority of investments remain in share holdings, at 70.4%, (or EUR 2.92bn) an increase of 0.9 p.p. MoM, and 0.4 p.p. YoY. Of this, EUR 2.87bn, or 98% is into foreign equity holdings, while EUR 57.2m, or the remaining 2%, are investments into domestic equity holdings. On a YoY basis, domestic equity securities decreased by 18.6%, while foreign equity securities increased by 0.2%. On an MoM basis, both domestic and foreign equity holdings recorded growth, of 5.1% and 5.6%, respectively.
Equity holdings of Slovenian UCITS funds (October 2007 – November 2022, EURm)
Source: ATVP, InterCapital Research
Next up, the 2nd largest holding in the funds are bond holdings, at 15.5%, or EUR 644m, representing a decrease of 0.3 p.p. MoM, and 0.2 p.p. YoY. Following them, we have money market, deposits & cash, with 7.3% of the total, (or EUR 302m) a decrease of 0.8 p.p. MoM, but an increase of 1.1% YoY. Finally, we have investment funds, at 6.2% of the total (or EUR 256m), representing an increase of 0.1 p.p. MoM, but a decrease of 1 p.p. YoY.
Total assets of Slovenian mutual funds (June 2007 – November 2022, EURm)
Source: ATVP, InterCapital Research
Moving on, net contributions into the funds amounted to EUR 9.98m in November 2022, while during the last 12 months, they amounted to EUR 254.2m, a decrease of 45% YoY. Finally, the number of subscribers amounted to 508.2m, representing an increase of 3.2% YoY.
Net contributions into the Slovenian mutual funds (January 2016 – November 2022, EURm)
Source: ATVP, InterCapital Research
