Pension Funds Received 716 Million Kuna from Members in July, and Their Net Assets Increased by 272 Million Kuna

At the end of July this year, four Croatian mandatory pension funds (OMF) had a total of 2.03 million members, which is 61.5 thousand more than a year earlier, and the assets of these funds exceeded 113 billion kuna, according to the latest data from the Croatian Financial Services Supervisory Agency (Hanfa).

While the number of insured persons increased by more than 60 thousand on an annual basis, it has almost stagnated compared to June – it is higher by 510 insured persons or 0.03 percent. The largest number of members was held by AZ OMF, with 685.5 thousand, followed by Raiffeisen OMF, with 599 thousand, then PBZ/CO, with 392.3 thousand, and Erste Plavi, with almost 356 thousand. 

In July, a total of 716.6 million kuna in net pension contributions was paid into the accounts of members of the four mandatory pension funds, which is 23 percent or 138 million kuna more than in July a year earlier. A total of 3.8 billion kuna in net contributions has been paid since the beginning of this year, and since the inception of mandatory pension funds, in the last 15 years, 83.68 billion kuna.

The total assets under management of mandatory pension funds reached 113.2 billion kuna at the end of July and were 5.5 percent or almost 6 billion kuna higher than a year earlier. Compared to June, the assets of pension funds increased by 272 million kuna or by 0.24 percent. 

What can be observed is that mandatory pension funds received 716 million kuna from their members’ contributions in July, and their net assets increased by 272 million. The difference is evident in the decline of assets – the value of money market instruments fell by 109 million kuna, the value of domestic corporate bonds by 65.8 million, the value of shares in domestic alternative funds by 32.8 million, and the value in foreign corporate bonds fell by 31.5 million kuna. 

Considering that mandatory pension funds are long-term investors, such disruptions, primarily caused by the corona crisis, should be annulled. 

{embed_digitalno_izdanje}{/embed_digitalno_izdanje}