Agrokor Pushes Retirement Funds Profits Down

Proin sed ipsum euismod, gravida metus vitae, ullamcorper ligula. Sed commodo sem sed ante venenatis interdum.

Total value of Croatian mandatory retirement funds grew by Kn 7,.7 billion in 2017, to the all-time high of Kn 91.7 billion. This makes up for 26% of the Croatian GDP, ranking Croatia first among transition countries and somewhere in the middle of the list of developed countries.

Total number of subscribers reached over 1.84 million.  Annual return of B-category funds, including the largest number of subscribers, was 3.06% in 2017. This is a drop in comparison to the average return of 5.76% since the inception of the system, and is probably mainly due to the Agrokor crisis. Category A funds did better in 2017, growing by 4.57%, and the C category grew by 6.08%. But both were under their life-time performance of 8.95% for the A category and 6.93% for the C category.

The President of the Association of Retirement Funds and the head of the Raiffeisen Fund, Mr Damir Grbavac, said that the Association is waiting for new investment opportunities, primarily in infrastructure such as the HEP, as well as further privatization and IPOs.

More in INSURANCE, BANKING AND FINANCE