By the end of June 2023, the total AUM of Slovenian mutual funds amounted to EUR 4.44bn, an increase of 14.1% YoY, and 2.9% MoM.
The Slovenian Securities Market Agency, ATVP, has recently published its latest report on the developments recorded by the Slovenian mutual funds, for the month of June 2023. In the report, we can see that the total AUM of the Slovenian mutual funds amounted to EUR 4.44bn, an increase of 14.1% YoY, 12.2% YTD, and 2.9% MoM.
The YoY growth came both as a result of the base effect (as June 2022 recorded a decrease of app. EUR 200m MoM compared to May 2022), but also due to the surge in the AUM value, which can also be seen in the MoM, and YTD data. In fact, on an MoM basis, the 2.9% growth comes on the back of 2.5% MoM growth in May 2023, meaning that the growth was supported by other factors as well.
Breaking the YoY growth further, and looking at the asset structure of the mutual funds, in absolute terms the largest increases were recorded by shareholdings, which increased by EUR 494m, or 18.5%, followed by bonds at EUR 72m, or 11.3%, investment funds, at EUR 58m, or 24.3%, and finally, the money market holdings, which increased by EUR 22m, or 41.1%. On the other hand, cash holdings decreased by EUR 79m, or 34%, while deposits and loans decreased by EUR 18m or 69.4%.
Moving on to the monthly data, we can see that share holdings once again are the main driver of growth. In absolute terms, they increased by EUR 135.4m, or 4.5%, followed by bonds, with a growth of EUR 82m, or 1.2%, and investment funds, with an increase of EUR 78m, or 2.7%. Money market holdings also increased by EUR 22m, or 2.9%, while on the other hand, cash holdings decreased by EUR 22.7m, or 12.9%, while deposits and loans decreased by EUR 2.5m or 24%.
Total assets of Slovenian mutual funds (June 2007 – June 2023, EURbn)
Source: ATVP, InterCapital Research
The positive sentiment we have witnessed for the last couple of months, despite the still challenging macroeconomic and geopolitical situation, has clearly affected the returns of the funds as well. This is most evident in shareholdings, which even though the interest rate in the EU (which negatively impact equity valuations and thus make equity more riskier, and as such increase the expected returns by investors), have recorded solid growth both on a MoM and YoY level. Breaking these holdings down even further, foreign issuers’ equity securities amounted to EUR 3.12bn, an increase of 4.6% MoM, and 19% YoY. On the other hand, home issuers equity securities amounted to EUR 57.2m, a decrease of 2.6% MoM, and 6.5% YoY. Given that foreign issuers’ equity securities account for 98.2% of the total equity holdings, growth in the shares then is expected.
Equity holdings of Slovenian UCITS funds (October 2007 – June 2023, EURm)
Source: ATVP, InterCapital Research
Besides the increase in the inherent value of the assets, the growth of any of these assets can also come from the net contributions to the funds. In June 2023, the net contributions amounted to EUR 28.7m, a more than 4x increase YoY, and a 27% increase MoM. It should be noted that June 2022 was a low outlier in terms of these numbers, and the MoM data is more representative. On a trailing 12M basis, the net contributions amounted to EUR 242.9m, a decrease of 27% compared to the same period last year, which would indicate that even though the contributions are increasing, they’re still not at levels we’ve already seen.
Net contributions into the Slovenian mutual funds (January 2016 – June 2023, EURm)
Source: ATVP, InterCapital Research
Finally, taking a look at the share of all these assets in the total AUM, shares still hold the vast majority at 71.5%, an increase of 1 p.p. MoM, and 2.6 p.p. YoY. Following them we have bonds with 16%, a decrease of 0.3 p.p. MoM, and 0.4 p.p. YoY, as well as investment funds, which hold 6.7% of the total, remaining unchanged MoM, and increasing by 0.5 p.p. YoY. Lastly, we have the money market, deposits & cash, which hold 5.4% of the total AUM, a decrease of 0.7 p.p. MoM, and 2.7 p.p. YoY.
