Pension Fund Assets Slightly Increased, Returns Negative

Net assets of pension funds in Croatia amounted to 23.36 billion kuna at the end of September this year, which is a decrease of 321.6 million kuna compared to the end of August, while it has increased by 1.54 billion kuna compared to the beginning of this year, according to Hanfa data.

Thus, net assets of pension funds increased by 7 percent in the first nine months of this year, while for comparison, this growth in the same period last year was over 25 percent. The largest part of the total assets of Croatian pension funds at the end of September, or more than 22.48 billion kuna, related to the net assets of four mandatory pension funds (OMF). At the same time, the net assets of six open voluntary pension funds (ODMF) amounted to 742.3 million kuna, while the assets of 14 closed DMFs were at a level slightly below 133.4 million kuna.

Compared to the beginning of this year, according to Hanfa data, the assets of OMFs increased by 7 percent or 1.48 billion kuna, ODMFs by 7.15 percent or 49.5 million kuna, and closed DMFs by 12 percent or 14.3 million kuna. Mandatory pension funds also ended September with negative returns, averaging 3.02 percent, which is significantly higher compared to August, when the average return of OMFs was in the negative by 0.76 percent. Throughout this year, the average return of OMFs has mostly been negative, except for May and July, when almost all mandatory pension funds recorded slightly positive returns (except for Raiffeisen OMF, which also had a negative return in July).

The largest share in the total net assets of OMFs, at 39.75 percent, or 8.9 billion kuna at the end of September, still belongs to AZ fund, whose return in September was negative by 2.59 percent. Following is Raiffeisen fund with assets worth 6.8 billion kuna (30.31 percent share) and a negative return of 2.92 percent. The assets of PBZ Croatia osiguranje fund simultaneously amounted to 3.8 billion kuna (share of 16.94 percent), with a return of minus 3.54 percent, while the assets of Erste Plavi fund amounted to 2.92 billion kuna (12.99 percent). The return of that fund was minus 3.83 percent in September.

Negative returns in September were also recorded by most ODMFs, among which, based on the value of net assets, Raiffeisen ODMF was in first place. The value of the assets of that fund amounted to 321.4 million kuna (43.3 percent share), and the return in that fund in September was negative by 3.9 percent. In second place is AZ profit fund with assets of 256.1 million kuna (share of 34.5 percent) and a negative return of 3.2 percent, while the net assets of AZ benefit fund amounted to 57.9 million kuna (7.81 percent), and the return of that fund was negative by 0.28 percent.

The assets of the Croatia osiguranje ODMF fund were at the level of 54.5 million kuna (share of 7.35 percent) at the end of September, and that fund achieved the largest negative return last month, of 5.17 percent. Erste Plavi Expert fund, which ended September with 39.5 million kuna in assets (5.32 percent), recorded a return of minus 4.42 percent, while the open voluntary pension fund that managed the smallest assets at the end of September, of 12.8 million kuna (1.73 percent share), was the only one to end the month with a positive return of 0.39 percent. Returns of 14 closed voluntary pension funds were also negative in September, ranging from minus 0.15 (Railway Union fund) to minus 5.69 percent (Seafarers Union fund), while only ZDMF HAC ended the month in the positive by 0.31 percent.  (H)