June 2024 Monthly Report

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PENSION FUNDS

SECOND PILLAR PENSION FUNDS

At the end of June 2024, mandatory pension funds (MPFs) had 2,280,744 members, i.e. 8,607 (0.4%) members more than in the previous month. Category B funds had 79.6% of all MPF members, while category A and category C funds had 15.9% and 4.5% of all MPF members respectively. Out of 10,468 new members, 10,337 (98.8%) were automatically allocated by REGOS. Termination of membership due to retirement or death was recorded with respect to 1,861 insured persons. Total net contributions paid to MPFs in June amounted to EUR 126.6m (0.6% of net assets at end-May). At the same time, total payments from all MPFs due to personal account closures reached EUR 38.8m (0.2% of net assets at end-May), rising by EUR 1.8m compared to the previous month.

At the end of June 2024, net assets of MPFs amounted to EUR 21.6bn, rising by EUR 293.5m (1.4%) relative to the previous month. Nominal monthly Mirex returns reached 1.2% for category A, 1.0% for category B and 0.3% for category C. Annual Mirex returns reached 12.9% for category A, 9.5% for category B and 4.0% for category C. Year-to-date returns reached 6.5% for category A, 4.5% for category B and 1.0% for category C, while annualised^[1] returns since the beginning of MPFs’ operation reached 7.5% for Mirex A, 5.3% for Mirex B and 3.3% for Mirex C^[2].

At the end of June, bond investments of MPFs totalled EUR 13.2bn (61.2% of total assets), making their share decrease by 0.5 p.p. on a monthly basis. The share of equity investments in MPFs’ assets increased by 0.3 p.p. on a monthly level, amounting to 23.4% of MPFs’ assets (EUR 5.1bn) at the end of June 2024. Investments in domestic shares accounted for 13.6%, while investments in foreign shares accounted for 9.8% of MPFs’ assets. Investments in investment funds amounted to EUR 2.2bn (10.0% of the assets), making the proportion of these investments in total assets decrease by 0.2 p.p. relative to the previous month. Investments in cash and deposits amounted to 4.4% of the assets, or EUR 958.2m.

THIRD PILLAR PENSION FUNDS

At the end of June 2024, the number of members of 8 open-ended voluntary pension funds (OVPFs) rose by 0.5% on a monthly basis, while the number of members of 21 closed-ended voluntary pension funds (CVPFs) increased by 0.3%, making the number of members of these funds reach 406,701 and 49,112 respectively. Total monthly payments made to voluntary pension funds (VPFs) in June 2024 amounted to EUR 9.3m (0.7% of net assets at end-May), while total payments made from these funds reached EUR 4.2m (0.3% of net assets at end-May). Total payments from VPFs made due to retirement and other reasons accounted for 76.9%, payments made due to the change of fund reached 18.8%, while those made due to death accounted for 4.3% of total payments in June. With respect to total payments made due to retirement, the amount of EUR 1.4m was paid through a pension company (fund), EUR 0.9m were paid in the form of lump-sum payments, while the amount of EUR 1.0m was transferred for payment to pension insurance companies.

In June 2024, net assets of VPFs increased by EUR 13.6m (1.0% on a monthly basis) and stood at EUR 1.3bn. Monthly nominal returns of VPFs ranged from 0.2% to 1.1%, while returns on an annual basis ranged from 3.5% to 14.4%. VPFs’ year-to-date returns ranged from 0.9% to 7.6%. As regards the investment structure of VPFs, the largest part of the portfolio was made up of bonds and amounted to a 55.1% share in assets, followed by stocks with a 26.2% share and investment funds with a 9.9% share. The share of bonds in VPFs’ investments decreased on the monthly basis by 0.3 p.p., the share of investments in investment funds fell by 0.1 p.p., while equity share increased by 0.3 p.p.

INSURANCE COMPANIES

In June 2024, there were 14 insurance companies operating on the market. The total premium collected in the first five months of 2024 amounted to EUR 953.3m, of which EUR 175.5m (18.5%) related to life insurance premium and EUR 776.8m (81.5%) to non-life insurance premium. The structure of the non-life insurance premium collected is dominated by motor vehicle liability insurance (36.9%), followed by insurance of land vehicles (18.9%), and insurance against fire and natural disasters (9.2%). The amount of claims settled in the first six months of 2024 reached EUR 654.7m. EUR 259.1m (39.6%) of this amount related to life insurance, while EUR 395.6m (60.4%) related to non-life insurance. In the total amount of claims settled in non-life insurance, the largest amounts related to motor vehicle liability insurance (41.5%), insurance of land motor vehicles (22.1%), and insurance against fire and natural disasters (9.3%).

CAPITAL MARKET

The total turnover on the Zagreb Stock Exchange reached EUR 31.0m in June 2024, increasing by 3.2% on a monthly level. The total turnover in the first six months reached EUR 204.2m, which is by 49.0% more than the total turnover in the first half of the previous year. Market capitalisation decreased by 0.2% relative to the previous month and stood at EUR 44.8bn, of which stocks amounted to EUR 24.9bn, bonds to EUR 18.0bn, money market instruments to EUR 1.8bn and ETFs to EUR 51m. Compared to the beginning of the year, market capitalisation increased by 13.2%. As regards sectoral stock indices, the largest monthly growth (0.3%) was recorded by CROBEXnutris, while CROBEXkonstrukt recorded the largest monthly decline (3.6%). The main stock index of the ZSE (CROBEX) recorded a monthly growth (0.9%), as well as CROBEXtr (1.3%). Bond index CROBIS also recorded a monthly increase (0.1%), same as CROBIStr (0.3%). In the first six month of 2024, the largest half-year growth of 24.1% was recorded by CROBEXindustrija, while the main stock indices also recorded two-digit growth: CROBEX 11.7% and CROBEXtr 13.9%. Bond indices increased by 0.8 % (CROBIS) and 2.0 % (CROBIStr).  ERICSSON NIKOLA TESLA d.d. was the stock most traded in June, with its turnover amounting to EUR 2.6m (14.2% of the overall trade in stocks in June) and a 1.94% monthly price increase.

INVESTMENT FUNDS

In June 2024, there were 113 UCITS operating on the market. Total net assets of UCITS amounted to EUR 2.8bn at the end of the month, increasing by EUR 84.3m or 3.2% compared to the previous month. Total monthly payments of all UCITS in June were positive, amounting to EUR 85.5m. Negative net payments were recorded by feeder funds (EUR -0.9m) and bond funds (EUR -9.3m). Positive net payments were recorded by balanced funds (EUR 1.8m), equity funds (EUR 11.3m), funds categorised as “other” (EUR 19.7m) and money market funds (EUR 62.9m).

Bond funds’ net assets accounted for 33.7% of the total net assets of all UCITS at the end of June, funds categorised as “other” accounted for 26.8%, while equity and balanced funds accounted for 16.7% and 5.9% of the total UCITS’ net assets respectively. In June2024, all types of UCITS recorded positive asset-weighted average monthly returns: equity funds (2.0%), feeder funds (1.5%), other funds (0.4%), balanced funds (1.1%), money market funds (0.3%) and bond funds (0.4%). At the end of June 2024, the asset-weighted average annual returns stood at 21.6% for equity funds, 7.4% for balanced funds, 5.3% for funds categorised as “other", 9.1% for feeder funds and 2.7% for bond funds.

Net assets of the Fund for Croatian Homeland War Veterans and Members of their Families amounted to EUR 169.3m (a 0.8% monthly increase), with the monthly return of the fund reaching 0.9%.

The full report is available at Statistics/Monthly reports.