Shares in Funds at the End of 2024 Held by More Than 304 Thousand Citizens

The total assets of open investment funds with public offerings (UCITS funds) exceeded 3.5 billion euros in the first quarter of this year, and at the end of last year, more than 304 thousand citizens held shares in these funds, it was highlighted on Friday at the Top of the Funds awards ceremony.

UCITS funds in Croatia have recorded stable growth over the past decade, with fluctuations related to global economic trends. The total net assets of UCITS funds increased from around 1.7 billion euros, which was the amount in 2014, to more than 3.5 billion euros in the first quarter of this year, as stated in the HGK press release.

The Chairman of the Management Board of Hanfa Ante Žigman assessed that stable growth is a clear indicator of increasing financial literacy among citizens and trust in the domestic fund industry.

– Events in global markets in recent weeks have impacted our funds; however, this was limited in scope in terms of asset outflows, while money market funds even recorded positive inflows – said Žigman.

Croats are increasingly recognizing investment funds

He reminded that Hanfa launched a public consultation in early April on regulatory relief in the investment fund market, recognizing the need to analyze the existing regulatory framework and the possibilities for its further improvement to increase the competitiveness of the domestic financial market.

– We expect that the removal of excessive regulation will facilitate the operations of existing funds and open doors to new investments and financial innovations – said Žigman.

In addition to the growth of total net assets, the past year also saw an increase in the number of investors and the number of UCITS funds. Currently, there are 119 UCITS funds operating in Croatia, which is 10 more than at the end of 2023.

– Croatian citizens are increasingly recognizing investment funds as a means of saving and investing to achieve their long-term goals. Thus, at the end of 2024, more than 304 thousand citizens held shares in UCITS funds, with an average value of 8,404 euros per investor. Compared to the end of 2023, the number of citizens investing in UCITS funds increased by 21 percent – highlighted Vanja Dominović, head of the Department for Financial Institutions and Macroeconomic Analysis at HGK.

Awards in Seven Categories

The annual Top of the Funds awards for business results achieved in 2024 were presented at the Croatian Chamber of Economy (HGK) during the meeting of the Association of Investment and Pension Funds of HGK, and in the category of the best bond open investment fund with a public offering, the award went to HPB Bond Fund.

InterCapital Short Term Bond was declared the best short-term bond open investment fund with a public offering, in the category of the best equity open investment fund with a public offering, the award went to the InterCapital SBITOP TR UCITS ETF fund, while the HPB Global fund was declared the best moderate mixed open investment fund with a public offering.

The Erste Adriatic Multi Asset fund was awarded as the best conservative mixed open investment fund with a public offering, ZB Future 2055, managed by ZB Invest, as the best special open investment fund with a public offering, and Erste Asset Management was declared the best investment fund management company last year.

– Members of our association have made a valuable contribution to the growth and preservation of the assets of Croatian citizens over the past year. I am pleased that the fund industry continues to grow and develop in all segments, to the benefit of the entire community. It remains important for all of us, in collaboration with other stakeholders, to actively work on promoting financial literacy, especially at this moment, as history teaches us that global capital markets, despite fluctuations, always record growth in the long term – said Marin Hrešić, president of the Association of Investment and Pension Funds and also president of the UCITS Funds Group.