In February 2024, Slovenian mutual funds recorded another extraordinary month of growth, increasing by 4.8% MoM, and 26.6% YoY, amounting to EUR 5.2bn, thus breaching the EUR 5bn mark for the 1st time. This would also mark the largest NAV increase on the YoY since 2021.
Recently, the Slovenian Securities Market Agency, ATVP, published its latest report on the Slovenian mutual funds, for February 2024. In the report, we can see that the Slovenian mutual funds have recorded a solid increase on the MoM basis and even more extraordinary growth on the YoY basis. In fact, the NAV of the funds increased by 4.8% MoM, and 26.6% YoY, reaching EUR 5.2bn. This would mark both the largest growth rate on the YoY since 2021 and also the first time in the history of the mutual funds that they breached EUR 5bn of NAV.
The increase in the NAV of the funds could have been influenced by several factors, with the most important being the change in the underlying value of the assets in the funds, and the net contributions into the funds. Starting off with the latter, the net contributions into the Slovenian mutual funds amounted to EUR 45.5m in February, meaning that 19% of the MoM increase came from the higher net contributions. Furthermore, in the last twelve months, the net contributions amounted to EUR 385m, increasing by 92% compared to the same period last year, and representing app. 35% of the YoY increase in NAV.
This was supported by not only the growing contributions by the existing subscribers of the funds but also from new subscribers, whose numbers just keep growing. As such, their numbers amounted to 535.9k at the end of February, growing by 0.6% MoM, 4.4% YoY.
Net contributions into the Slovenian mutual funds (January 2016 – February 2024, EURm)
Source: ATVP, InterCapital Research
The remaining growth came from the increase in the value of assets. Breaking the funds down by the asset classes, we can see that on the MoM basis, the largest increase came from shares, which grew by 7.3%, or EUR 267.4m, to EUR 3.92bn. It should be noted that this is to be expected, as shares make up the largest category of mutual funds by far. This is also pretty evident here, as most other asset classes remained roughly the same MoM.
Moving on to the YoY data, shares once again recorded the largest increase, growing by EUR 1bn, or 24.8%, followed by bonds at EUR 125m, or 18.5%, and the money market holdings, at EUR 66m, or 114%. On the other hand, inv. funds decreased by 23.4%, or EUR 72m, and cash holdings decreased by EUR 35m, or 23.8%.
Total assets of the Slovenian mutual funds (June 2007 – February 2024, EURm)
Source: ATVP, InterCapital Research
Delving further into the equity holdings, we can see that the largest holding, i.e. that of foreign issuers’ equity securities, at EUR 3.86bn (or 98.5% of the total), was the one driving growth in February. In fact, it recorded an increase of 7.4% MoM and 35.4% YoY. On the other hand, domestic issuers’ equity securities amounted to EUR 57.3m, remaining unchanged MoM, and decreasing by 6.5% YoY.
Equity holdings of Slovenian UCITS funds (October 2007 – February 2024, EURm)
Source: ATVP, InterCapital Research
Finally, taking a look at the current asset structure of the mutual funds, we can see that shares make up the vast majority at 74.9%, increasing by 1.75 p.p. MoM, and 4.39 p.p. YoY. Following them are bonds at 14.9%, with a decrease of 0.82 p.p. MoM, and 0.93 p.p. YoY, as well as money market, deposits & cash holdings, at 5.7%, with a decrease of 0.58 p.p. MoM, and 0.75 p.p. YoY. Finally, investment funds accounted for 3.9% of the total, decreasing by 0.37 p.p. MoM, and 2.79 p.p. YoY.
