At the end of October 2022, Slovenian mutual funds AUM amounted to EUR 3.98bn, representing a decrease of 8.2% YTD, 3.7% YoY, but an increase of 3.1% MoM.
The Slovenian Securities Market Agency (ATVP) has recently published its latest report on the developments and changes recorded by the Slovenian mutual funds, for October 2022. According to the report, by the end of the month, the Slovenian mutual funds’ assets under management (AUM) decreased by 8.2% YTD, 3.7% YoY, but managed a decent increase of 3.1% MoM, showing that even though the asset value is on a negative trajectory, the decline is slowing down.
This can be attributed to several factors. First of all, the inflation growth amounted to 9.9% during the month, recording the 2nd month of decline on a yearly basis. However, this can also be due to the inflation already being elevated during October 2021, thus leading to a higher base. Even so, the slowdown in inflation is always positive news on the financial markets. As such, the equity market did record a slight rally during the month (SBITOP increased by 5.6% MoM) and considering the majority of asset holdings (69.6%) of investment funds are shares holdings, they also experienced an increase. Also, the energy situation, although volatile in Europe, has stabilized somewhat, at least when it comes to energy prices. Finally, the conflict in Ukraine is ongoing, but the impact on the rest of Europe is somewhat limited (except for higher prices).
This is reflected if we look at the asset structure of the Slovenian funds. In fact, share holdings amounted to EUR 2.77bn at the end of October 2022, representing an increase of 5% MoM, but a decrease of 5.6% YoY. Of this, the vast majority of investments (98%) are into foreign issuers’ equity securities, while only 2% are in home issuers. This would mean that home issuers’ equity securities amounted to EUR 54.5m, which is an increase of 2% MoM, but a decrease of 22% YoY. At the same time, foreign issuers’ equity securities amounted to EUR 2.72bn, which is an increase of 5.1% MoM, and a decrease of 5.2% YoY.
Equity holdings of Slovenian UCITS funds (October 2007 – October 2022, EURm)
Source: ATVP, InterCapital Research
Next up, we have bond holdings, which held 15.8%, or EUR 629m, representing an increase of 0.3 p.p. YoY, but a decrease of 0.3 p.p. MoM, in the total asset structure. Following them we have money market, deposits & cash, which amounted to 8.1% of the total (or EUR 323m), representing an increase of 2.6 p.p. YoY, but a decrease of 1 p.p. MoM. Finally, we have investment funds, with 6.1% of the total (or EUR 242m), representing an increase of 0.1 p.p. MoM, and a decrease of 1.4 p.p. YoY.
Total assets of Slovenian mutual funds (June 2007 – October 2022, EURm)
Source: ATVP, InterCapital Research
What hasn’t changed despite the volatility on the market, is the amount of net contributions into the funds, which amounted to EUR 16.3m in October. However, if we look at the data from the last twelve months, this is a slowdown, as in total, the net contributions during this period amounted to EUR 290.7m, a decrease of 31% YoY. Finally, the number of subscribers to the funds amounted to 506.1k, representing an increase of 3.4% YoY.
Net contributions into the Slovenian mutual funds (January 2016 – October 2022, EURm)
Source: ATVP, InterCapital Research
