According to the latest report by the Slovenian Securities Market Agency, the NAV of the Slovenian mutual funds amounted to EUR 5.45bn in May, recording an increase of 3.3% MoM, but an increase of 26.6% YoY.
At the end of May 2024, the Slovenian mutual funds recorded an NAV of EUR 5.45bn, growing by 3.3% MoM, and 26.6% YoY. To understand the drivers behind these changes, a closer look at net contributions and the underlying asset values is required. Starting with net contributions, in May, they amounted to EUR 26.9 million, marking a significant decrease of 39% MoM but an increase of 18% YoY. The overall MoM increase in assets was EUR 172.4 million, indicating that without net contributions, the “real” increase would be approximately EUR 154 million. This suggests that the primary driver of the increase was the change in asset values, as detailed below.
Net contributions into the Slovenian mutual funds (January 2016 – May 2024, EURm)
Source: ATVP, InterCapital Research
On a trailing twelve-month basis ending in May, net contribution amounted to EUR 446m, accounting for 39% of the total YoY increase in the mutual funds’ NAV. This would mean that 61% or EUR 701m of growth came from the increase in the value of assets. Moving on, the number of subscribers continued to grow in May, reaching 543.6k, a rise of 0.4% MoM and 4.9% YoY. This growth indicates that contributions came from both existing and new subscribers.
Regarding the asset performance, in April, the “other assets” category saw the largest absolute MoM decrease, but in May, this category experienced the largest absolute increase, at EUR 4.3m, or 40.5%. Significant increases were also recorded in the shares and investment funds categories, both growing by 4% MoM. Given that shares comprise the largest portion of the total assets, their absolute increase of EUR 162.4m was more impactful compared to the EUR 8m increase in investment funds. On the other hand, the only notable decrease in MoM was in the deposits and loans category, which decreased by EUR 1.5m, or 15.5%.
Meanwhile, on a YoY basis, the growth has been more substantial. The most significant increase came from shares, which grew by EUR 1.14bn, or 37.6% YoY. This was followed by money market holdings, which rose by EUR 76m, or 103%, and bond holdings, which increased by EUR 66m, or 9%. Conversely, investment funds and cash holdings saw the largest declines, decreasing by EUR 72m, or 25%, and EUR 55m, or 31%, respectively.
Total assets of Slovenian mutual funds (June 2007 – May 2024, EURm)
Source: ATVP, InterCapital Research
In the current asset structure of the funds, shares constitute the majority at 76.6%, showing an increase of 0.57 p.p. MoM and 6.11 p.p. YoY. Bonds follow, making up 14% of the total, which reflects a decrease of 0.44 p.p. MoM and 2.21 p.p. YoY. Money market instruments, deposits, and cash holdings account for 5.1%, down by 0.23 p.p. MoM and 0.93 p.p. YoY. Lastly, investment funds comprise 4% of the total, with a slight growth of 0.02 p.p. MoM but a decrease of 2.74 p.p. YoY.
Given their significant stake in the total assets, it is prudent to examine the shares more closely. The majority of the shareholdings in Slovenian mutual funds consist of foreign issuers’ shares, accounting for 98.44% of the total, or EUR 4.11 billion. These shares have increased by 4.1% MoM and 38% YoY. In contrast, domestic issuers’ shareholdings amount to EUR 65.2 million, marking an increase of 0.9% MoM and 11.2% YoY. This indicates that most of the subscriber inflows have been directed towards foreign equity funds.
Equity holdings of Slovenian UCITS funds (October 2007 – May 2024, EURm)
Source: ATVP, InterCapital Research
