Report - Agencija za trg vrednostnih papirjev
Report - Agencija za trg vrednostnih papirjev
Report - Agencija za trg vrednostnih papirjev
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REPORT ON THE STATE AND<br />
SITUATION ON THE MARKET OF<br />
FINANCIAL<br />
INSTRUMENTS IN 2010<br />
Ljubljana, May 2011
<strong>Report</strong> on the state and situation on the market of financial instruments in 2010<br />
Prepared by:<br />
Securities Market Agency<br />
Poljanski nasip 6, 1000 Ljubljana, Slovenia<br />
Design:<br />
ATVP<br />
Year of issuance: 2011
CONTENTS<br />
INTRODUCTION 1<br />
1. PRIMARY SECURITIES MARKET AND TAKEOVERS 3<br />
1.1. PRIMARY MARKET 3<br />
1.1.1. Public offerings of securities 3<br />
1.1.2. Exemptions from the obligation to publish a prospectus 4<br />
1.2. ADMISSION OF SECURITIES TO TRADING ON A REGULATED MARKET 5<br />
1.3. TAKEOVERS 6<br />
1.4. DISCLOSURE OF INFORMATION ON THE OPERATIONS OF PUBLIC COMPANIES 6<br />
2. SECONDARY MARKET OF FINANCIAL INSTRUMENTS 8<br />
2.1. ADMISSIONS OF FINANCIAL INSTRUMENTS TO THE REGULATED MARKET 8<br />
2.2. VOLUME AND BREAKDOWN OF TRADING IN FINANCIAL INSTRUMENTS ON THE REGULATED MARKET 9<br />
2.3. NON-RESIDENTS’ ACTIVITY ON THE REGULATED MARKET 11<br />
2.4. BLOCK TRADES 12<br />
2.5. MARKET INDICES 12<br />
2.6. MARKET CAPITALISATION OF FINANCIAL INSTRUMENTS ON THE REGULATED MARKET 13<br />
2.7. OPERATIONS OF INVESTMENT FIRMS 15<br />
3. INVESTMENT FUNDS 17<br />
3.1. MUTUAL FUNDS 17<br />
3.2. INVESTMENT COMPANIES 22<br />
3.3. INVESTMENT FUNDS FROM THE EU MEMBER STATES MEETING THE CONDITIONS FOR MARKETING AND SALE IN<br />
THE REPUBLIC OF SLOVENIA 24<br />
4. MUTUAL PENSION FUNDS 25<br />
ANNEX 29
INTRODUCTION<br />
In accordance with Article 472 of the Market in Financial Instruments Act (hereinafter: the ZTFI), the Securities<br />
Market Agency reports annually to the National Assembly of the Republic of Slovenia on the state and situation<br />
on the market in financial instruments, by 30 June of each year for the past year. The second paragraph of Article<br />
472 of the ZTFI stipulates that the annual report on the situation on the market in financial instruments must<br />
include data on the public offerings of financial instruments, trading on stock exchange markets (stating the<br />
volume and structure of trading in financial instruments), the admission of financial instruments to stock exchange<br />
markets, and trading in financial instruments outside them.<br />
In 2010 the majority of major economies recorded a recovery of economic activity, which should reflect the end of<br />
the economic recession. The financial markets strengthened as well, however, experts from the field<br />
recommended caution, since the markets remained vulnerable, mostly due to high budgetary pressures. A high<br />
unemployment rate was still alarming.<br />
The recovery of financial markets was also supported by the government fiscal programmes aimed at stimulating<br />
economic activity and preventing a debt crisis of some highly indebted economies. As a result, liquidity in capital<br />
markets was high, but significant risks, which had contributed to the international financial crisis, were not<br />
eliminated.<br />
In 2010 the governments of developed countries and the EU introduced many new elements on the field of<br />
regulation and supervision of the financial system, which will have to demonstrate their effects by assuring<br />
stability of financial organisations and reduction of financial risks in the years to come. On one side liquidity and<br />
capital requirements for the banks were exacerbated, while on the other side a regulative environment, which<br />
should provide coordinated operations of supervisory bodies and macro-prudential supervision on the EU level,<br />
was established. On the international level a mutual programme was adopted within G20, to assure stable and<br />
robust financial sector in the following years.<br />
The recovery on the Slovenian financial market is much slower than on foreign markets. Liquidity was low and the<br />
credit activity of banks was also lower than expected. Unfortunately, it has to be established that the Slovenian<br />
government did not follow foreign governments and has not adopted any significant measures to contribute to<br />
higher credit activity of banks and better liquidity of the stock exchange.<br />
This is confirmed by all significant data on the market in financial instruments. The number of long-term financial<br />
instruments traded on Ljubljanska bor<strong>za</strong> <strong>vrednostnih</strong> <strong>papirjev</strong> (hereinafter: the Ljubljana Stock Exchange) fell by<br />
16 in 2010, to a total of 158 as at 31 December. At the end of 2010, there were 73 shares on the market (8<br />
shares listed on the stock exchange, 17 in standard listing and 48 in entry market); on the bond market, there<br />
were 79 bonds; on the investment coupon market, there were 4 investment coupons of mutual funds (hereinafter:<br />
MF); on the investment company share market, there were 2 shares of investment companies (hereinafter: IC).<br />
Trading in financial instruments on the Ljubljana Stock Exchange reached EUR 492.54 million in 2010, almost a<br />
half less than in the previous year. The volume of trading totalled EUR 360.79 million for shares in public<br />
companies, EUR 108.90 million for bonds, and EUR 22.85 million for shares in investment funds (hereinafter: IF).<br />
Contrary to stock exchange indices on foreign markets in financial instruments, the Slovenian blue-chip index SBI<br />
TOP was down by 13.47 % in nominal terms from a year earlier, equalling 850.35 points.<br />
Market capitalisation of financial instruments on the Ljubljana Stock Exchange amounted to EUR 20.22 billion at<br />
the end of 2010 (IFs not included), which is an increase of 4.9 % over December 2009. Total market capitalisation<br />
of all shares on the stock exchange (IFs not included) stood at EUR 7.03 billion at the end of December 2010,<br />
while market capitalisation of bonds reached EUR 13.19 billion. Due to lower turnover, the share turnover ratio<br />
decreased from 0.09 to 0.05, calculated as the ratio of annual volume to market capitalisation at the end of the<br />
period. The bond turnover ratio remained at 0.01 in 2010, while the turnover ratio for shares in IFs increased from<br />
0.07 to 0.09.<br />
[ 1 ]
In December 2010, the Ljubljana Stock Exchange started trading on the international trade system Xetra and has<br />
become a part of the international capital market. Xetra is the leading international trading platform used by more<br />
than 250 financial companies with more than 4,800 brokers. Investors can access Xetra directly from 18<br />
European countries and the Middle East countries. By introducing the trading system Xetra, the Ljubljana Stock<br />
Exchange has achieved one of the most significant strategic goals, the integration of the Slovenian market into<br />
international capital markets. Xetra will provide an easier access to the Slovenian market for foreign financial<br />
intermediaries. International promotion has been organized in foreign financial centres to arise higher interest of<br />
foreign investors in the Slovenian products.<br />
Table 1: Basic data on regulated market in the Republic of Slovenia<br />
31. 12. 06* 31. 12. 07 31. 12. 08 31. 12. 09 31. 12. 10<br />
Market capitalisation (in billion EUR) 18.14 25.67 15.26 19.28 20.22<br />
Market capitalisation IF (in billion EUR) 0.81 1.18 0.35 0.38 0.27<br />
Share of market capitalis. in GDP (%) 60.0 74.5 41.1 54.5 56.1***<br />
SBI TOP 1,473.33 2,518.92 854.26 982.67 850.35<br />
Number of financial instruments 205 188 187 174 158<br />
Shares, 109 96 90 82 75<br />
of which (P)IC shares 7 7 4 4 2<br />
Investment coupons MF 3 3 7 7 4<br />
Bonds 93 89 90 85 79<br />
Turnover (in billion EUR)* 1.81 3.38 1.29 0.90 0.49<br />
Share of turnover in GDP (%) 6.0 9.8 3.5 2.5 1.4***<br />
Share turnover ratio ** 0.13 0.10 0.11 0.09 0.05<br />
Bond turnover ratio 0.03 0.02 0.04 0.01 0.01<br />
Turnover ratio of shares in PFs/ICs/IFs 0.24 0.14 0.13 0.07 0.09<br />
Number of authorized participants 24 24 24 26 25<br />
Investment firms 12 12 12 11 9<br />
Banks 12 12 12 15 16<br />
Comments: *Data until 31 December 2006 calculated on the basis of the exchange rate EUR 1=SIT 239.640.<br />
**IF shares are not included in the share turnover ratio and capitalisation.<br />
***Estimated GDP for 2010 (EUR 36,061 million), source: Statistical Office of the Republic of<br />
Slovenia.<br />
Source: ATVP<br />
[ 2 ]
1. PRIMARY SECURITIES MARKET AND TAKEOVERS<br />
1.1. Primary market<br />
1.1.1. Public offerings of securities<br />
The interest for new securities slightly increased in 2010, as the number of issuers, who decided for public<br />
offering of securities was a bit higher than in 2009. Nevertheless, the number of issuers, who could assure higher<br />
turnover on the capital market, was still low. Such situation must be attributed above all to the financial crisis,<br />
which considerably shook the investors’ trust in securities as had been anticipated by the issuers, who did not<br />
even attempt to accomplish new offers. Furthermore, the economic policy has not truly supported the capital<br />
market. Six issuers (business entities) decided for a public offering of shares in 2010, so they had to prepare a<br />
prospectus to be approved by the ATVP. Five issuers published a prospectus and one issuer published a<br />
simplified prospectus. The issuers decided for placement of securities on the regulated market due to bigger<br />
transparency of company operations and better opportunities to obtain additional funds under favourable<br />
conditions.<br />
Table 2: Approval of a prospectus for offering securities to the public in 2010<br />
Issuer of securities (VP) Type of security Value of<br />
issue<br />
AGROGORICA, d. d., Šempeter pri Gorici no-par value shares EUR 686,332.50<br />
SAVA, druţba <strong>za</strong> upravljanje in financiranje, d. d., Kranj registered bonds EUR 30,000,000.00<br />
NOVA LJUBLJANSKA BANKA, d. d., Ljubljana registered bonds EUR 100,000,000.00<br />
GORENJE, gospodinjski aparati, d. d., Velenje no-par value shares EUR 24,999,988.32<br />
ALTA Skupina, d. d., Ljubljana no-par value shares EUR 3,722,204.00<br />
Total EUR 159,408,524.82<br />
Source: ATVP<br />
Table 3: Approval of a simplified prospectus for securities to the public in 2010<br />
Issuer of securities (VP) Type of security Value of<br />
issue<br />
NOVOLES, d. d., Straţa no-par value shares EUR 1,452,230.40<br />
Source: ATVP<br />
In case a new significant factor emerges between the approval of the prospectus and the closure of a public<br />
offering of securities or beginning of trading on the regular market, or if a major irregularity or incomplete<br />
information, which could affect the price of securities has been stated, the issuer, provider or investor of the<br />
request for placement of securities on the regulated market must update the prospectus with adequate or correct<br />
information in an appendix to the prospectus. The same procedure as for the approval of the prospectus applies<br />
for the appendix to be approved. One issuer had to update his prospectus with an appendix to the prospectus for<br />
public offering of shares (AGROGORICA, d. d., Šempeter pri Gorici); another issuer had to provide an appendix<br />
to his simplified prospectus for a public offering (NOVOLES, d. d., Straţa).<br />
A comparison with the past years (Table 1, Annex) demonstrates that the trends of issuing new securities and the<br />
extent of business entities financing on the capital market were not encouraging, neither in relation to the issue of<br />
shares, nor with regard to the issue of new debt securities.<br />
Only two issuers decided for public offering of debt securities in 2010, which is probably the result of high costs<br />
related to the issue of securities in general and unfavourable tax policy. The Republic of Slovenia was slightly<br />
more active with regard to borrowing on the capital market, as it held two public offerings of bonds and four<br />
auctions for three-month treasury bills, which is lower than in the past years. The Republic of Slovenia does not<br />
need the Agency's approval for public offering of securities.<br />
[ 3 ]
Table 4: Public offerings of government securities in 2010<br />
Security Issue no. Subscribed value<br />
of issue (in EUR)*<br />
Short-term securities<br />
Date of issue<br />
3-month treasury<br />
TZ126 50,000,000 14. 1. 2010<br />
bills<br />
˝ TZ127 50,000,000 15. 4. 2010<br />
˝ TZ128 31,110,000 15. 7. 2010<br />
˝ TZ129 25,000,000 14.10. 2010<br />
Total short-term securities 156,110,000<br />
Long-term securities<br />
bonds RS67 1,500,000,000 27.1.2010<br />
˝ RS68 1,000,000,000 17. 3. 2010<br />
Total long-term securities 2,500,000,000<br />
TOTAL GOVERNMENT SECURITIES 2,656,110,000<br />
Note: * The figures for total nominal value of securities issued are those entered in the depository at the Central Securities<br />
Clearing Corporation (KDD).<br />
Source: ATVP<br />
The number of government securities issues was in 2010 by half lower if compared with the previous year,<br />
considering the number of issues and the extent of the state borrowing on the Slovenian capital market.<br />
Table 5: Securities issues by the Republic of Slovenia in the years 2000 – 2010 on the Slovenian capital market<br />
(nominal value in EUR million)<br />
Securities of the Republic of Slovenia<br />
Year<br />
Short-term<br />
Number Nominal value<br />
Long-term<br />
Number Nominal value Total<br />
2000 24 269.51 12 155.53 425.04<br />
2001 53 790.54 12 218.20 1,008.73<br />
2002 76 1,648.39 27 1,575.51 3,223.90<br />
2003 76 1,580.91 10 663.27 2,244.19<br />
2004 77 2,211.69 15 751.13 2,962.82<br />
2005 72 2,092.18 22 1,724.80 3,816.98<br />
2006 24 701,.5 12 1,034.89 1,73.,94<br />
2007 11 550.00 1 298.50 848.50<br />
2008 9 390.00 1 1,000.00 1,390.00<br />
2009 9 1,114.40 3 4,000.00 5,114.40<br />
2010 4 156.11 2 2,500.00 2,656.11<br />
Note: Data until 31 December 2006 calculated on the basis of the exchange rate EUR 1=SIT 239.640.<br />
Source: ATVP<br />
1.1.2. Exemptions from the obligation to publish a prospectus<br />
The ZTFI offers a broad definition of the offer of securities to the public, stipulating that it means any<br />
communication in any form and by any means, presenting sufficient information on the terms of the offer and the<br />
securities to be offered, so as to enable an investor to decide to purchase or subscribe to these securities. This<br />
involves securities issues offered to a broad investment public and securities offered to a narrow or very specific<br />
group of investors.<br />
[ 4 ]
The ZTFI stipulates that no person is allowed to offer securities to the public in the Republic of Slovenia without<br />
first publishing the appropriate prospectus in line with this act. Pursuant to the Prospectus Directive, the ZTFI<br />
stipulates some exemptions for individual cases. Exemptions from the obligation to publish a prospectus are<br />
stipulated by Article 49 of the ZTFI (e.g., issue of securities in a closed circle of up to 100 persons who are not<br />
qualified investors etc.) and Article 50 of the ZTFI (e.g., issue of shares in the process of merger, issue of<br />
substitute securities in the takeover procedure etc.). When exemptions are applied, the issuer must also inform<br />
the Agency of the application of such exemption. In 2010, the Agency received 39 notifications on the application<br />
of the exemption from the publication of prospectus.<br />
In 2010, there were 32 issues of shares, of which 31 issues of corporate shares for a narrow or very specific<br />
group of investors, and one issue of shares by the bank. Shares were issued in the form of no-par value shares<br />
without nominal value. The most frequent reasons for share issue were the following: increases in share capital<br />
by a non-cash contribution, increases in share capital by the company’s own assets, debt-to-equity conversions<br />
as a result of company's financial problems, mergers, and investment in new development programmes.<br />
In 2010, there were also 7 placements of bonds to a narrow or very specific group of investors, of which five were<br />
bank-bond issues and 2 were corporate-bond issues. The total nominal value of the five private placements of<br />
bank bonds was EUR 110,000,000, while that of the two placements of corporate bonds was EUR 40,000,000.<br />
The most common reasons for bond issues included securing long-term sources of finance, replacing long-term<br />
sources of finance, and acquiring resources for the purposes of specific investment policy.<br />
The comparison with previous years (Table 3, Annex) shows that the corporate sector in 2010 issued a<br />
significantly higher number of securities for a specific group of investors than in previous years. On the contrary,<br />
the bank sector issued a lower number of securities for a specific group of investors than in previous years.<br />
1.2. Admission of securities to trading on a regulated market<br />
If there was no need to publish a prospectus upon the first sale of securities based on public offering, the issuer<br />
has to compile one and publish it upon the admission of the security to a regulated market, and obtain a decision<br />
from the Agency on the approval of the prospectus (or simplified prospectus).<br />
In 2010, the Agency approved nine prospectuses for the admission of securities to trading on the regulated<br />
market. These were securities, which the issuers in 2010 decided to list on the stock exchange.<br />
Table 6: Approval of a prospectus for the admission of securities to trading on a<br />
regulated market in 2010<br />
Issuer of securities (VP)<br />
Type of<br />
Value of issue<br />
security<br />
KB1909 Societa Finanziaria per Azioni – Finančna delniška Registered bonds EUR 10,250,000.00<br />
druţba, Gorica, Italija<br />
NOVA KREDITNA BANKA MARIBOR, d. d., Maribor Registered bonds EUR 26,030,000.00<br />
NOVA LJUBLJANSKA BANKA, d. d., Ljubljana Registered bonds EUR 12,500,000.00<br />
FINETOL, finančna druţba, d. d., Celje No-par value shares EUR 1,056,234.35<br />
ZAVAROVALNICA TRIGLAV, d. d., Ljubljana Registered bonds EUR 30,000,000.00<br />
BANKA CELJE, d. d., Celje Registered bonds EUR 40,000,000.00<br />
GORENJE, gospodinjski aparati, d. d., Velenje No-par value shares EUR 7,843,064.76<br />
MAKSIMA INVEST, d. d., Ljubljana No-par value shares EUR 7,606,463.86<br />
BANKA CELJE, d. d., Celje Registered bonds EUR 20,000,000.00<br />
Total EUR 155,285,762.97<br />
Source: ATVP<br />
Both in terms of number and value, more securities were admitted to trading on the stock exchange in 2010 than<br />
in the previous year; the number was nevertheless lower than in the years before the financial crisis. The issuers<br />
are also more reluctant to decide to list issued securities because of the costs and additional reporting<br />
requirements.<br />
[ 5 ]
1.3. Takeovers<br />
The year 2010 continued the trend from 2009, and there were fewer takeovers due to unfavourable economic<br />
conditions and more stringent legislation in relation to takeover financing. The number of takeovers in 2010<br />
halved in comparison to the previous year and was the lowest in the past 10 years.<br />
In 2010, there were only six takeovers; all of which were successful. These takeovers were the consequence of<br />
acquiring companies engaged in a similar activity, which indicates that companies strived for better economy of<br />
scale and competitiveness on the market.<br />
Table 7: Takeovers in 2010<br />
Acquirer Target company Type of<br />
Successfulness /date of<br />
payment<br />
Decision on successfulness<br />
PROALITA storitve in investicije, KOMPAS mejni turistični servis, cash Successful, 22 February 2010<br />
d.o.o., Ljubljana<br />
d.d., Ljubljana<br />
AFP, d. o. o., Dobova<br />
Stilles, d. d., Inţeniring in notranja cash Successful, 19 April 2010 2010<br />
oprema, Sevnica<br />
KD Kapital, financna druţba, d.o.o., Ţičnice Vogel Bohinj, d. d.,<br />
cash Successful, 21 May 2010<br />
Ljubljana<br />
Ljubljana<br />
KALANTIA LIMITED, Limassol, KS NALOŢBE finančne naloţbe, d. cash Successful, 15 June 2010<br />
Cyprus<br />
d., Ljubljana<br />
MEDALJON upravljanje drugih ZLATA MONETA II finančna<br />
cash Successful, 15 July 2010<br />
druţb, d. d., Maribor<br />
druţba, d. d., Maribor<br />
FACIG<br />
METALKA TRGOVINA, d. d., cash Successful, 10 September<br />
HANDELSGESELLSCHAFT<br />
Ljubljana<br />
2010<br />
m.b.H. Wien, Avstrija<br />
Source: ATVP<br />
1.4. Disclosure of information on the operations of public companies<br />
At the end of 2010, there were 83 companies that had the status of public companies that issued securities. The<br />
number of public companies is constantly decreasing, which is the sign that the Slovenian capital market is not<br />
attractive for provision of additional financial resources, due to high costs and unfavourable tax policy. The<br />
number of public companies is also changing during the year as a result of the admission of new securities to<br />
trading as well as withdrawal of certain issuers from the stock exchange.<br />
With the aim of informing the public and comprehensively informing investors, public companies must report on<br />
their financial standing, legal status and operations by publishing audited annual reports, semi-annual reports,<br />
interim management reports and by regularly informing the public about any matters that might significantly<br />
impact the price of issued securities.<br />
At the beginning of April 2010, the system for central storage of regulated information (CSI) came into effect. The<br />
CSI system with the title “INFO HRAMBA” (info storage) is being operated by the Ljubljana Stock Exchange on<br />
behalf of the ATVP; all public companies publish regulated information in this system.<br />
On the EU level the enforcement of the Transparency Directive stipulates that each member country is obliged to<br />
provide at least one CSI system. Individual CSI systems represent information points collecting regulated<br />
information on public companies and securities issued by them on the level of individual member countries. The<br />
future plans define that those systems should be linked into an electronic networks platform, which will represent<br />
a uniform point to access regulated information on all public companies on the EU level. Such organi<strong>za</strong>tion will<br />
provide adequate transparency and flow of regulated information, while the above stated facts will additionally<br />
contribute to a more efficient integrated EU market in securities.<br />
Under the requirement for publicity of information, public companies published 91 audited annual reports for 2009<br />
in 2010. Public companies also published 83 semi-annual reports for the first six months of 2010, and in the first<br />
[ 6 ]
half of 2010 they also published 72 interim management reports within the period starting upon the expiry of the<br />
ten weeks after the end of individual six-month period.<br />
In the second half of 2010, the interim management report was published by 73 public companies.<br />
In 2010, public companies made 1,627 announcements of regulated information, informing investors about<br />
individual facts that could impact the price of financial instruments.<br />
All above stated regulated information is also accessible at the websites of the Ljubljana Stock Exchange,<br />
websites of individual public companies and the “info-hramba”.<br />
Due to obligatory informing of the public, public companies published 190 notifications of significant changes to<br />
the ownership and management structure in 2010,; specifically on reaching, exceeding and terminated exceeding<br />
of 5-, 10-, 15-, 20-, 25-percent, 1/3, 50- and 75-percent shares of voting rights and notifications on every<br />
acquisition or disposal of a share of voting rights by a member of the company’s management or supervisory<br />
body.<br />
[ 7 ]
2. SECONDARY MARKET OF FINANCIAL INSTRUMENTS<br />
At the end of 2010, there were 9 investment firms on the market of financial instruments (of which 8 were<br />
members of the Ljubljana Stock Exchange) that held an authorisation from the Agency to provide investment<br />
services, and 16 banks (of which 13 were members of the Ljubljana Stock Exchange) that held an authorisation<br />
from the Bank of Slovenia to provide investment services and transactions.<br />
During the year the number of investment firms decreased as a result of the merger of three investment firms into<br />
one.The number of the banks operating on the capital market increased by one.<br />
At the end of 2010, a total of 1,494 investment companies from EU Member States were notified for the direct<br />
provision of investment services and transactions related to financial instruments in the Republic of Slovenia.<br />
2.1. Admissions of financial instruments to the regulated market<br />
In 2010 the shares of the issuer Agrogorica, d. d., Šempeter pri Gorici (with the symbol AGOG) were admitted to<br />
the share market segment – entry market. The shares of the following issuers were removed from the share<br />
market segment − entry market: Gorenjski tisk, d. d., Kranj (symbol GTKG); Jelen, d. d., Slovenske Konjice<br />
(symbol JESG); Trdnjava holding, d. d., Celje (symbol TR0R); Center naloţbe, d. d., Maribor (symbol IFHR); MP<br />
Finance, d. d., Ljubljana (symbol MDUR) and Zlata Moneta II, d. d., Maribor (symbol ZM2R).<br />
The bonds of the following issuers were admitted to the bond market segment: Republic of Slovenia with the<br />
symbols RS67 in RS68; KB1909 Finančna druţba, d. d., Gorica, Italy with the symbol KBG2; Nova KBM, d. d.,<br />
Maribor with the symbol KBM9; Nova Ljubljanska banka, d. d., Ljubljana with the symbols NLB25 in NLB26;<br />
Sava, d. d., Kranj with the symbol SA02; Banka Celje, d. d., Celje with the symbols BCE13 in BCE14;<br />
Zavarovalnica Triglav, d. d., Ljubljana with the symbol ZT02 and Probanka, d. d., Maribor with the symbol PRB12.<br />
The bonds of the following issuer were removed from the bond market segment: Pote<strong>za</strong> Naloţbe, d. o. o.,<br />
Ljubljana with the symbol PNO1. The bonds of the following issuers matured: Republic of Slovenia with the<br />
symbols RS18 in RS60; Nova KBM, d d., Maribor with the symbol KBM8; Banka Celje, d d., Celje with the<br />
symbols BCE7 and BCE9; Abanka Vipa, d. d., Ljubljana with the symbols AB07, AB11, AB12 in VIP7; Nova<br />
Ljubljanska banka, d. d., Ljubljana with the symbol NLB25; Factor banka, d. d., Ljubljana with the symbols FB12<br />
and FB19; Housing Fund of the Republic of Slovenia with the symbols SSR1E in SSR3; Droga Kolinska, d. d.,<br />
Ljubljana with the symbol DRK1 and Probanka, d. d., Maribor with the symbol PRB7.<br />
Due to the conversion into a mutual fund, the shares of the investment company Krona Senior ID with the symbol<br />
SNOG and the shares of the investment company Zvon Ena ID with the symbol ZVIR were removed from the<br />
listing. The funds management companies removed from the investment coupon market the investment coupons<br />
of the fund PB Uranium Indeks with the symbol PBDUI, PB Biotech Indeks with the symbol PBDBI and<br />
MPBALKAN. SI with the symbol MPBL as there had been little interest for trade in those coupons in the previous<br />
years.<br />
Table 8: Number of financial instruments on the regulated market<br />
Shares Bonds IF Total<br />
As at 31 December 2009 78 85 11 174<br />
New FI in 2010 1 11 0 12<br />
Removed FI in 2010 6 17 5 28<br />
Changed FI in 2010 -5 -6 -5 -16<br />
As at 31 December 2010 73 79 6 158<br />
Source: Ljubljana Stock Exchange.<br />
[ 8 ]
2.2. Volume and breakdown of trading in financial instruments on the regulated<br />
market<br />
The volume of trading in financial instruments on the regulated market has been constantly falling during the last<br />
three years. The volume of trading in shares of public companies was down by almost a half in 2010 compared to<br />
2009, while the volume of trading in bonds dropped by 30.3 %.<br />
Table 9: Volume of trading in financial instruments on the regulated market<br />
Year<br />
Volume of trading (in EUR billion)<br />
Shares Bonds IF Pension<br />
coupons<br />
Long-term<br />
financial<br />
instruments<br />
Short-term<br />
financial<br />
instruments<br />
1995 0.19 0.09 0.00 0.00 0.28 0.08 0.36<br />
1996 0.28 0.06 0.00 0.00 0.34 0.03 0.37<br />
1997 0.37 0.05 0.00 0.00 0.42 0.04 0.46<br />
1998 0.56 0.09 0.04 0.00 0.69 0.03 0.72<br />
1999 0.70 0.15 0.22 0.01 1.08 0.03 1.11<br />
2000 0.61 0.24 0.26 0.01 1.12 0.01 1.13<br />
2001 0.99 0.22 0.23 0.01 1.45 0.01 1.46<br />
2002 1.16 0.46 0.36 0.02 2.00 0.00 2.00<br />
2003 0.62 0.54 0.25 0.00 1.41 0.00 1.41<br />
2004 0.93 0.47 0.25 0.00 1.65 0.00 1.65<br />
2005 0.94 0.75 0.15 0.00 1.84 0.00 1.84<br />
2006 1.45 0.19 0.17 0.00 1.81 0.00 1.81<br />
2007 3.03 0.17 0.18 0.00 3.38 0.00 3.38<br />
2008 0.95 0.26 0.08 0.00 1.29 0.00 1.29<br />
2009 0.72 0.15 0.03 0.00 0.90 0.00 0.90<br />
2010 0.36 0.11 0.02 0.00 0.49 0.00 0.49<br />
Note: Data until 31 December 2006 calculated on the basis of the exchange rate EUR 1=SIT 239.640.<br />
Source: Ljubljana Stock Exchange.<br />
In the trading structure for 2010 compared to 2009, shares lost 6.3 percentage points, although three quarters of<br />
all trading is still realized in shares. The interest for bonds was relatively higher. The percentage of bond trading<br />
increased by 4.8 percentage points, while the percentage of investment funds trading gained 1.5 percentage<br />
point (Table 6, Annex).<br />
A total of 123,044 transactions were concluded in 2010, which means an average of 490 transactions per trading<br />
day, while the number of transactions in 2009 was 162,100. The number of transactions decreased by 24.1 %,<br />
compared to 2009. The average daily volume of concluded transactions was EUR 1.96 million in 2010, which is<br />
45.4 % less than in 2009. The average value of a transaction was EUR 4,003 in 2010, which is EUR 1,798 less<br />
than in 2009. The majority of trades were in the shares of public companies (82.8 %), followed by IF shares (14.1<br />
%), and bonds (3.1 %). Based on such data, it can be established that trading in financial instruments is dropping,<br />
considering the number of concluded transactions and their volume.<br />
The structure by month is illustrated bellow.<br />
Total<br />
[ 9 ]
Figure 1: Breakdown of trading on the regulated market in 2010 by month<br />
Source: Ljubljana Stock Exchange<br />
In terms of total turnover, market shares of individual members of the Ljubljana Stock Exchange significantly<br />
changed in 2010, in comparison to the previous year. The largest market share was that of UniCredit Banka<br />
Slovenija, which increased its market share by 5.25 percentage points, compared to 2009. It was followed by Alta<br />
Invest, who started operating in March 2010 and was formed after the merger of three investment firms.<br />
Considering the market share, the third place is occupied by Ilirika BPH, which increased its market share by 4.85<br />
percentage points in 2010, compared to 2009.<br />
Table 10: Turnover of the members of the Ljubljana Stock Exchange by type of financial instrument in 2010<br />
Member<br />
Shares<br />
(in EUR)<br />
Bonds<br />
(in EUR)<br />
Invest. funds<br />
(in EUR)<br />
Total turnover<br />
(in EUR)<br />
Share of<br />
total<br />
turnover<br />
UNICREDIT BANKA SLOVENIJA d.d. 120,396,002 21,617,964 202,642 142,216,608 14.44 %<br />
Alta Invest d.d.* 87,077,451 9,848,072 1,590,279 98,515,802 10.00 %<br />
ILIRIKA BPH d.d. 56,792,554 38,656,387 1,822,913 97,271,854 9.87 %<br />
PERSPEKTIVA BPD d.d. 38,274,559 45,538,414 468,288 84,281,262 8.56 %<br />
ABANKA VIPA d.d. 70,910,421 8,175,577 4,703,618 83,789,616 8.51 %<br />
GBD Gorenjska borzno posredniška<br />
51,397,287 6,808,944 14,844,049 73,050,280 7.42 %<br />
druţba d.d.<br />
NOVA LJUBLJANSKA BANKA d.d. 41,880,064 17,977,665 2,022,800 61,880,528 6.28 %<br />
NOVA KREDITNA BANKA<br />
38,289,534 9,746,131 2,360,988 50,396,654 5.12 %<br />
MARIBOR d.d.<br />
RAIFFEISEN BANKA d.d. 39,654,334 6,438,765 293,801 46,386,901 4.71 %<br />
KD BANKA d.d. 30,471,598 5,051,679 647,374 36,170,651 3.67 %<br />
FACTOR BANKA d.d. 11,968,510 18,366,075 825,384 31,159,969 3.16 %<br />
ARGONOS borzno posredniška<br />
21,147,412 1,035,197 4,351,822 26,534,431 2.69 %<br />
hiša d.o.o.<br />
SKB BANKA d.d. 24,746,318 116,146 89,071 24,951,535 2.53 %<br />
PROBANKA d.d. 10,714,297 7,355,735 3,824,350 21,894,382 2.22 %<br />
HYPO ALPE-ADRIA-BANK d.d. 14,255,670 4,028,148 1,095,098 19,378,916 1.97 %<br />
PRIMORSKI FINANČNI CENTER<br />
12,147,647 3,709,631 1,831,862 17,689,140 1.80 %<br />
INTERFIN d.o.o.<br />
CERTIUS BPH d.o.o. 9,752,159 6,851,814 964,313 17,568,287 1.78 %<br />
DEŢELNA BANKA SLOVENIJE d.d. 9,908,854 2,386,634 797,330 13,092,818 1.33 %<br />
GORENJSKA BANKA d.d. 7,257,507 2,257,438 67,324 9,582,268 0.97 %<br />
PUBLIKUM investicijske storitve<br />
8,137,354 73,718 11,647 8,222,720 0.83 %<br />
d.d.<br />
POTEZA borzno posredniška<br />
4,764,747 350,171 775,620 5,890,537 0.60 %<br />
druţba d.d.<br />
MP NALOŢBE d.d. 3,692,612 1,017,163 768,487 5,478,262 0.56%<br />
[ 10 ]
BANKA KOPER d.d. 2,747,810 273,468 806,521 3,827,799 0.39%<br />
MOJA DELNICA BPH d.d. 2,220,312 98,212 387,995 2,706,519 0.27%<br />
ecetra Central European e-Finance AG 2,302,268 0 137,691 2,439,959 0.25%<br />
RAIFFEISEN CENTROBANK AG 639,314 0 0 639,314 0.06%<br />
BKS BANK AG, Bančna podruţnica 37,252 25,000 19 62,271 0.01%<br />
Total 721,583,849 217,804,146 45,691,288 985,079,283 100.00 %<br />
Note: *On 19. 3. 2010 the companies MP Naloţbe, Pote<strong>za</strong> borzno posredniška druţba and Publikum investicijske storitve merged into the<br />
company Alta Invest.<br />
Source: Ljubljana Stock Exchange, ATVP<br />
In 2009, the company ecetra Central European e-Finance AG became the first member of the Ljubljana Stock<br />
Exchange with remote access, which provided foreign investors with a direct access to the Slovenian market. In<br />
December 2009, a subsidiary of BKS Bank became a member of the Ljubljana Stock Exchange. Two other<br />
companies became members of the Ljubljana Stock Exchange with remote access in 2010: Raiffeisen<br />
Centrobank AG, Vienna and KBC Securities NV, Brussels, Belgium.<br />
2.3. Non-residents’ activity on the regulated market<br />
Non-residents’ trading in financial instruments equalled about a half of total trading in 2010, mostly due to their<br />
trading in bonds and blue-chips. Irrespective of those data, it can be established from the volume of trading that<br />
the Slovenian Stock Exchange has become relatively uninteresting for foreign investors.<br />
Table 11: Volume and breakdown of trading on the regulated market by non-residents (in<br />
EUR million)<br />
Year Total trading Non-residents’<br />
volume<br />
Non-residents’<br />
share<br />
Net purchases by<br />
non-residents<br />
2008 1.285,8 419,3 32,6 -91,7<br />
2009 904,0 244,3 27,0 49,3<br />
2010 492,5 282,0 57,3 121,7<br />
Source: Bank of Slovenia<br />
The capitalisation of shares owned by non-residents was 10.00 % of total market capitalisation of shares at the<br />
end of December 2010, which is 2.82 percentage points more than at the end of 2009.<br />
Figure 2: Net purchases by non-residents on the regulated market and change in the SBI TOP share index in<br />
2010<br />
Source: Bank of Slovenia, Ljubljana Stock Exchange<br />
[ 11 ]
Figure 3: Proportion of total share capitalisation held by non-residents on the regulated market, and movement<br />
of the SBI TOP in 2010<br />
Source: Ljubljana Stock Exchange.<br />
2.4. Block trades<br />
In 2010, there were 261 block trades, which is 19.2 % more than in 2009, and 20.3 % more than in 2008. The<br />
block trade volume totalled EUR 136.1 million in 2010, i.e. 68.0 % less than in 2009 and 37.8 % less than in<br />
2008.<br />
Block trades accounted for 27.6 % of the total trading on the Ljubljana Stock Exchange in 2010, compared with<br />
47.1 % in 2009, and 17.0 % in 2008. The average value of a block trade in 2010 was EUR 0.52 million, i.e. 73.2<br />
% less than in 2009 and 48.3 % less than in 2008.<br />
Table 12: Block trades, 2008 to 2010, broken down by trade value<br />
Year 2008 Year 2009 Year 2010<br />
Class<br />
No. of Share No. of<br />
Share No. of<br />
Share<br />
trades<br />
trades<br />
trades<br />
up to EUR 0.125 million 0 0.00 % 0 0.00 % 0 0.00 %<br />
from EUR 0.125 million to EUR 0.167 million 29 13.36 % 36 16.44 % 58 22.22 %<br />
from EUR 0.167 million to EUR 0.209 million 27 12.44 % 21 9.59 % 34 13.03 %<br />
from EUR 0.209 million to EUR 0.250 million 21 9.68 % 17 7.76 % 23 8.81 %<br />
from EUR 0.250 million to EUR 0.334 million 13 5.99 % 28 12.79 % 29 11.11 %<br />
from EUR 0.334 million to EUR 0.417 million 11 5.07 % 11 5.02 % 26 9.96 %<br />
from EUR 0.417 million to EUR 0.835 million 47 21.66 % 37 16.89 % 46 17.62 %<br />
from EUR 0.835 million to EUR 2.086 million 47 21.66 % 39 17.81 % 38 14.56 %<br />
from EUR 2.086 million to EUR 4.173 million 14 6.45 % 12 5.48 % 6 2.30 %<br />
above EUR 4.173 million 8 3.69 % 18 8.22 % 1 0.38 %<br />
Total 217 100.00% 219 100.00% 261 100.00%<br />
Source: ATVP<br />
2.5. Market indices<br />
Economic conditions in Slovenia are also illustrated by changes of the value of shares listed at the Ljubljana<br />
Stock Exchange. The value of the SBI TOP stock exchange index stood at 850.35 points at 31 December 2009,<br />
down 13.47 % or 132.32 points from a year earlier when the value of the SBI TOP index was 982.67 points. It<br />
peaked at 1,020.62 points on 5 January 2010. For comparison it must be mentioned that most stock exchange<br />
[ 12 ]
indices on the international capital markets experienced growth during the same period, which leads to a<br />
conclusion that recovery of the Slovenian economy is slower from other developed economies.<br />
Figure 4: The Slovenian stock exchange index SBI TOP in 2010<br />
Source: Ljubljana Stock Exchange<br />
The index SBI TOP is the first true blue-chip index of the Ljubljana Stock exchange, serving as the benchmark<br />
index, which offers information on the movement of prices of the most liquid shares at the Ljubljana stock<br />
Exchange. The index SBI TOP includes 5 to 10 regular shares, whereby the limit for each share’s proportion in<br />
the index cannot be higher than 30 %. Two liquidity criteria to include a share in the index SBI TOP are as<br />
follows:<br />
- minimum market capitalisation in free circulation EUR 50 million, and<br />
- minimum average daily trading (blocks excluded) EUR 50 thousand.<br />
The shares of 6 issuers were included in the SBI TOP as of 31 December 2010: Krka, d. d., Novo mesto (28.69<br />
% share of the index); Petrol, d. d., Ljubljana (23.46 % share of the index); Mercator, d. d., Ljubljana (20.69 %<br />
share of the index); Telekom Slovenije, d. d., Ljubljana (10.15 % share of the index); Nova KBM, d. d., Maribor<br />
(9.52 % share of the index) and Gorenje, d. d., Velenje (7.49 % share of the index).<br />
The value of most of the major global indices grew in 2010, the largest rise of 16.06 % being recorded by the<br />
DAX. The next-largest increase of 9.88 % was recorded by the NYSE US 100. The FTSE 100 was up 9.00 %,<br />
while the NIKKEI 225 finished the year down 3.01 %.<br />
2.6. Market capitalisation of financial instruments on the regulated market<br />
Market capitalisation of financial instruments on the Ljubljana Stock Exchange, calculated as the price of a<br />
financial instrument multiplied by the number of listed financial instruments, amounted to EUR 20.22 billion at the<br />
end of 2010 (IFs not included), which is 4.9 % more than in December 2009, when the figure was EUR 19.28<br />
billion. Total market capitalisation of all shares on the stock exchange (IFs not included) stood at EUR 7.03 billion<br />
at the end of December 2010, which was 16.9 % less than at the end of December 2009. Total market<br />
capitalisation of bonds stood at EUR 13.19 billion at the end of December 2010, up 21.9 % from a year earlier,<br />
when it amounted to EUR 10.82 billion, primarily because of new issues of bonds.<br />
[ 13 ]
Table 13: Market capitalisation of financial instruments on the Ljubljana Stock Exchange (in EUR million)<br />
31. 12. Share 31. 12. 2009 Share 31. 12.<br />
Share<br />
2008<br />
(in %)<br />
(in %)<br />
2010<br />
(in %)<br />
Share Market 8,468.42 54.22 8,462.22 43.03 7,027.89 34.31<br />
First listing 4,151.22 26.58 5,247.54 26.68 4,713.90 23.01<br />
Standard listing 2,589.28 16.58 2,206.92 11.22 1,498.48 7.31<br />
Entry market 1,727.92 11.06 1,007.76 5.12 815.51 3.98<br />
Bond Market 6,795.36 43.51 10,821.54 55.02 13,192.76 64.40<br />
Investment Fund Market 353.70 2.26 384.33 1.95 265.33 1.30<br />
Investment Coupon Market 129.75 0.83 132.98 0.68 106.78 0.52<br />
IC Share Market 223.95 1.43 251.35 1.28 158.55 0.77<br />
Total 15,617.48 100.00 19,668.09 100.00 20,485.98 100.00<br />
Source: Ljubljana Stock Exchange.<br />
The ten most heavily traded shares in 2010 accounted for 90.43 % of the total volume of trading in shares,<br />
compared to 92.92 % in 2009. This represents a slight decrease in the concentration of trading in the ten most<br />
heavily traded shares. The share of the most heavily traded share in the total trading amounted to 49.95 % in<br />
2010, and considerably increased, compared to 2009, when its share of total trading in shares equalled 29.38 %.<br />
Table 14: Ten most heavily traded shares on the regulated market in 2010<br />
No. Share Turnover (in EUR) Proportion of total<br />
Turnover ratio**<br />
volume of shares*<br />
(in %)<br />
1 Krka 180,231,692 49.95 0.08<br />
2 Mercator 25,481,784 7.06 0.04<br />
3 Telekom Slovenije 20,824,938 5.77 0.04<br />
4 Petrol 18,145,589 5.03 0.03<br />
5 Zavarovalnica Triglav 17,264,227 4.79 0.04<br />
6 Nova KBM 17,227,872 4.78 0.06<br />
7 Gorenje 16,119,983 4.47 0.08<br />
8 Sava 14,614,109 4.05 0.08<br />
9 Luka Koper 8,204,336 2.27 0.03<br />
10 Istrabenz 8,147,144 2.26 0.24<br />
Total 1 - 10 326,261,674 90.43 0.06<br />
Other shares 34,530,249 9.57 0.02<br />
ALL SHARES 360,791,923 100.00 0.05<br />
Notes: * Excluding IF shares.<br />
** Turnover is calculated as the ratio of the annual volume of trading in a financial instrument to its market capitalisation on the<br />
last day of the period.<br />
Source: Ljubljana Stock Exchange, ATVP<br />
The ten most heavily traded bonds, including blocks, accounted for 81.27 % of the total volume of trading in<br />
bonds in 2010, compared to 70.77 % in 2009. The most heavily traded was the second-issue bond of Slovenska<br />
odškodninska druţba (Slovenian Indemnity Fund).<br />
Table 15: Ten most heavily traded bonds on the regulated market in 2010<br />
No. Bond Turnover<br />
(in EUR)<br />
Proportion of total<br />
volume of bonds (in %)<br />
Turnover ratio*<br />
1 Slovenian Indemnity Fund 2 nd issue 42,205,124 38.75 0.07<br />
2 NLB 15 th issue 11,536,697 10.59 0.21<br />
3 Factor banka 17 th issue 7,111,500 6.53 0.29<br />
4 Petrol 1 st issue 6,727,473 6.18 0.12<br />
5 Nova KBM 7 th issue 5,422,722 4.98 0.19<br />
6 Republic of Slovenia 21 st issue 4,014,789 3.69 0.13<br />
7 Delo Prodaja 1 st issue 3,629,917 3.33 0.09<br />
8 Probanka 10 th issue 2,944,313 2.70 0.09<br />
[ 14 ]
9 Republic of Slovenia 57 th issue 2,530,409 2.32 0,01<br />
10 NLB 26 th issue 2,380,724 2.19 0.04<br />
Total 1 - 10 88,503,668 81.27 0.07<br />
Other bonds 20,398,979 18.73 0.00<br />
ALL BONDS 108,902,647 100.00 0.01<br />
Note: * Turnover is calculated as the ratio of the annual volume of trading in a financial instrument to its<br />
market<br />
capitalisation on the last day of the period.<br />
Source: Ljubljana Stock Exchange, ATVP<br />
In 2010, there were four ICs and seven MFs traded on the regulated market. Of total turnover in IF, 28.55 % was<br />
generated by the most heavily traded ID NFD 1, including block trading.<br />
Table 16: Turnover in shares/IF investment coupons on the regulated market in 2010<br />
No. IF Turnover<br />
in EUR<br />
Proportion of total<br />
volume of IF shares<br />
(in %)<br />
Turnover ratio*<br />
1 NFD 1 delniški investicijski sklad 6,522,55 28.55 0.06<br />
2 KD ID 4,339,754 19.00 0.09<br />
3 Krona Senior ID 3,578,072 15.66 -**<br />
4 Probanka Globalni naloţbeni sklad (VS) 3,280,359 14.36 0.10<br />
5 Zvon Ena ID 1,983,048 8.68 -**<br />
6 Infond Global (VS) 1,807,254 7.91 0.03<br />
7 MP-BALKAN.SI (VS) 642,001 2.81 -**<br />
8 Infond Dynamic (VS) 604,239 2.64 0.03<br />
9 Indeksni VS PB Uranium Index 51,620 0.23 -**<br />
10 ALTA EUROSTOCK (VS) 30,974 0.14 0.01<br />
Total 1 - 10 22,839,676 99.97 0.09<br />
Other shares/inv. coupons 5,968 0.03 -**<br />
ALL SHARES/IF INV. COUPONS 22,845,644 100.00 0.09<br />
Note: * Turnover is calculated as the ratio of the annual volume of trading in a financial instrument to its<br />
market<br />
capitalisation on the last day of the period.<br />
** IF not listed at the Ljubljana Stock Exchange on 31. 12. 2010, no data on its market capitalisation on the last day of the period.<br />
Source: Ljubljana Stock Exchange, ATVP<br />
2.7. Operations of investment firms<br />
In 2009, the Securities Market Agency developed the General Rules and Methodologies it uses when verifying<br />
and assessing investment firms under the second paragraph of Article 222 of the ZBan-1.<br />
The provisions of Article 301 of the ZTFI in relation to Article 222 of the ZBan-1 stipulate that the Agency must at<br />
least once a year:<br />
- Check the organisational structure, procedures and systems referred to in Article 124 of the ZBan-1 and<br />
the strategies and processes referred to in Article 126 of the ZBan-1, established by the investment firm<br />
for the purpose of harmonising its operations with the provisions of the ZTFI and regulations issued on<br />
the basis thereof;<br />
- Assess the risks to which the investment firm is or might be exposed in its operations; and<br />
- Assess the financial position and risks to which the investment firm is or might be exposed as a result<br />
of its relations with other persons within an investment group.<br />
With mutatis mutandis application of the third paragraph of Article 222 of the ZBan-1, the Agency verifies and<br />
assesses whether the organisational structure, procedures and systems referred to in Article 124 of the ZBan-1<br />
and the strategies and processes referred to in Article 126 of the ZBan-1, established by the investment firm, and<br />
the capital of the investment firm provide for a sound and reliable management system and appropriate coverage<br />
of risks, to which the investment firm is or might be exposed in its operations. By applying this methodology in<br />
2009, the Agency, based on supervision results, assessed individual investment firms depending on their risk and<br />
system relevance for the Slovenian capital market.<br />
[ 15 ]
An investment firm should always have enough capital available, considering the volume and types of investment<br />
services and transactions performed, and the risks to which it is exposed when performing such services and<br />
transactions. The initial capital of an investment firm should never be lower than EUR 730,000, except in the case<br />
stipulated by Article 153 of the ZTFI. Two investment firms reported an increase of initial capital in 2010.<br />
At the end of 2010, the sum of capital requirements for investment firms averaged EUR 0.54 million, which is 20.6<br />
% less than at the end of 2009. In the same period the average capital of investment firms decreased by 19.9 %.<br />
Nevertheless, investment firms had enough capital on average to cover eventual risks from operations. Unless an<br />
individual investment firm fulfilled capital requirements, the Agency would act in compliance with the Law.<br />
Table 17: Capital adequacy of investment firms (average)<br />
Average capital adequacy of investment firms<br />
31. 12. 2007 31. 12. 2008 31. 12. 2009 31. 12. 2010<br />
Sum of capital requirements EUR 1.24 mio EUR 0.71 mio EUR 0.68 mio EUR 0.54 mio<br />
Capital EUR 2.88 mio EUR 3.12 mio EUR 2.31 mio EUR 1.85 mio<br />
Sum of capital requirements / capital 0.43 0.23 0.29 0.29<br />
Source: ATVP<br />
A investment firm's exposure to an individual entity is the sum of all its receivables and contingent receivables<br />
from that entity, the value of its investments in financial instruments of that entity, and the value of its other equity<br />
holdings in that entity. A investment firm's exposure to an individual entity and parties related to that entity may<br />
not exceed 25 % of the investment firm's capital.<br />
Any exposure of an investment firm to an individual entity and its related parties that exceeds 10% of the<br />
investment firm's capital is classed as a large exposure. A large exposure may not exceed 25 % of the investment<br />
firm's capital. The sum of all large exposures of an investment firm may not exceed 800 % of the amount of the<br />
company’s capital.<br />
At the end of 2010, the total large exposures/capital ratio (average for all investment firms) was 13.2, i.e., 49.2 %<br />
less than at the end of 2009.<br />
Table 18: Ratio of total of large exposures to capital (average)<br />
Total of large exposures /<br />
capital<br />
Source: ATVP<br />
31. 12. 2007 31. 12. 2008 31. 12. 2009 31. 12. 2010<br />
57.9 36.5 26.0 13.2<br />
An investment firm must monthly report to the Agency on the liquidity ratios and liquidity amount for each working<br />
day of the past month. The liquidity ratio of an investment firm represents the ratio between liquid assets and<br />
matured or soon-to-be-matured liabilities of a investment firm. The liquidity ratio of a investment firm calculated<br />
for a specific working day must equal at least 1.<br />
At the end of 2010, the average liquidity ratio of investment firms was 17.54 or 19.7 % less than at the end of<br />
2009.<br />
Table 19: Liquidity ratio of investment firms (average)<br />
31. 12. 2007 31. 12. 2008 31. 12. 2009 31. 12. 2010<br />
Liquidity ratio 7.69 13.18 21.83 17.54<br />
Source: ATVP<br />
[ 16 ]
3. INVESTMENT FUNDS<br />
The global financial crisis, which started in 2008, caused a fall in the prices on global stock exchanges and<br />
consequently an extreme plunge in the value of investment fund assets, which in spite of growth during 2009 and<br />
2010, have not yet reached the value from before the financial crisis. The assets of Slovenian investment funds<br />
grew by 2.5 % to EUR 2.29 million in 2010, compared to the previous year. In the same period, the assets of<br />
European investment funds rose by 13.7 % to EUR 8,025 billion.<br />
In spite of the financial crisis, which significantly affected the investment fund sector, the range of investment<br />
funds did not decrease. On the contrary, competition among providers of investment fund management services<br />
has been increasing, as the number of newly founded investment funds operated by local management<br />
companies (MCs) raised by 3 to total 135 by the end of 2010.<br />
In 2010, there were 13 MCs in Slovenia operating 133 MFs and 2 ICs. At the end of 2010, 162 investment funds<br />
and sub-funds from other EU Member Countries, fulfilling the requirements of the Directive on Undertakings for<br />
Collective Investments in Transferable Securities (UCITS), were registered in Slovenia<br />
Table 20: General figures for investment funds, 31. 12. 2009 and 31. 12. 2010<br />
Number of<br />
entities<br />
Number of<br />
investors<br />
Value of<br />
assets<br />
(in EUR<br />
million)<br />
Source: ATVP<br />
Management<br />
Company - MC<br />
31. 12. 2009 31. 12. 2010<br />
Investment<br />
Management Mutual Fund<br />
Company -<br />
Company - MC - MF<br />
IC<br />
Mutual<br />
Investment<br />
Investment Investment<br />
Fund - MF<br />
Fund (IF) from<br />
Company - Funds (IFs)<br />
EU<br />
IC<br />
from EU<br />
Member<br />
Member<br />
States<br />
States<br />
14 128 4 162 13 133 2 162<br />
- 392,476 108,740 n.a. - 421,366 63,433 n.a.<br />
- 1,856 377 194 - 2,048 240 223<br />
3.1. Mutual funds<br />
The net value of assets of MFs managed by local MCs at the end of 2010 exceed EUR 2 billion for the first time<br />
and was by a tenth higher than a year before. The reason for this increase can be mostly attributed to the new<br />
growth of value of investments, particularly those oriented towards foreign financial markets, and to the<br />
transformation of two ICs into MFs.<br />
Table 21: Net asset value of MFs from 2005 to 2010 (in EUR million)<br />
31. 12. 2005 31. 12. 2006 31. 12. 2007 31. 12. 2008 31. 12. 2009 31. 12. 2010<br />
Total 1,376.6 1,920.8 2,908.2 1,505.3 1,842.3 2,029.7<br />
Note: Data until 31 December 2006 calculated on the basis of the exchange rate EUR 1=SIT 239.640.<br />
Source: ATVP<br />
Slovenian investors responded to the crisis with lower payments and withdrawal of assets from MFs, however,<br />
they did not change their habits or willingness to assume risks when investing their assets in MFs. This fact is<br />
illustrated by the share of assets invested into individual types of MFs, since those shares remained almost<br />
identical all the time, including the entire period of the crisis. As shown on Figure 7, the MFs with principal<br />
investments in shares prevailed in 2010 (64 %), followed by mixed MFs (30 %), while other types of MFs had only<br />
insignificant shares. It must be underlined that monetary funds are unable to develop in Slovenia, mostly due to<br />
taxation policy.<br />
[ 17 ]
Investors’ response in Europe was different, as they chose investments in specific types of MFs to respond on<br />
changing conditions in economy and on financial markets. As a result, during the worst crisis in 2008, shares of<br />
mutual funds with less risky investment policy, namely monetary MFs, increased, while shares of more risky<br />
equity MFs dropped. With the change of investment orientation, investors tried to insure their liquidity positions<br />
and keep the relative value of their assets invested in mutual funds. In 2009 and 2010 these shares began<br />
returning to the level before the crisis. Distribution of assets by types of MFs is much more balanced in Europe<br />
than in Slovenia, as no type of MF considerably differs.<br />
We must explain that according to the Bank of Slovenia, household assets in Slovenia placed in investment funds<br />
accounted for only 6 % in the structure of household financial property at the end of the third quarter of 2010,<br />
while the share of bank deposits and cash of households accounted for no less than 54 %. Such situation leads<br />
to a conclusion that in Slovenia investments in MFs are the decision of the investors, who are willing to assume<br />
higher risks, while in Europe MFs play a significant role in household savings.<br />
Figure 5: Comparison of assets allocation between Slovenian MFs (left side) and European MFs (right side) from<br />
2007 to 2010<br />
Source: ATVP, EFAMA, Bank of Slovenia<br />
The ratio among MCs in relation to the number of funds they manage and the volume of assets remains more or<br />
less unchanged. At the end of the year, the large majority of assets were managed by Triglav DZU, d.o.o., i.e.,<br />
EUR 472 million or 23.3 % of total assets, followed by KD Skladi, d.o.o., which managed 18.3 % of total assets,<br />
and NLB skladi, d.o.o., with 16.8 % of total assets.<br />
Table 22: Market shares of individual MCs, measured with the net asset value of managed assets<br />
Asset Management Company - MC<br />
Net asset value (in<br />
EUR)<br />
31. 12. 2009 31. 12. 2010<br />
Share (in %) No. of Net asset value (in<br />
manag. EUR)<br />
mutual<br />
funds<br />
Share (in<br />
%)<br />
No.<br />
manag.<br />
mutual<br />
funds<br />
Triglav DZU, d.o.o. 424,362,486 23.03 10 471,990,039 23.25 10<br />
KD Skladi, d.o.o. 355,826,453 19.31 17 371,308,691 18.29 17<br />
NLB Skladi, d.o.o. 305,995,580 16.61 15 341,326,144 16.82 15<br />
INFOND, d.o.o. 210,958,752 11.45 10 214,470,884 10.57 10<br />
Alta Skladi, d.d. - - - 164,690,568 8.11 22<br />
Publikum PDU, d. d. * 78,088,214 4.24 11 - - -<br />
Medvešek Pušnik DZU, d.d. * 69,680,508 3.78 11 - - -<br />
Probanka upravljanje, d.o.o. 108,669,145 5.90 9 105,179,844 5.18 9<br />
Ilirika DZU, d.o.o. 68,406,365 3.71 10 71,819,634 3.54 12<br />
Abancna DZU, d.o.o. 72,431,950 3.93 11 70,979,275 3.50 12<br />
of<br />
[ 18 ]
Primorski Skladi, d.d. 60,052,216 3.26 4 64,554,941 3.18 4<br />
Perspektiva DZU, d.o.o. 55,824,071 3.03 7 59,684,231 2.94 7<br />
DUS Krona, d.o.o. ** - - - 42,883,782 2.11 1<br />
Krekova druţba, d.o.o.*** 22,110,040 1.20 5 41,932,201 2.07 6<br />
NFD, d.o.o. 9,934,498 0.54 8 8,842,554 0.44 8<br />
Total 1,842,340,278 100.00 128 2,029,662,789 100.00 133<br />
Notes: * The management companies Publikum PDU, d. d. and Medvešek Pušnik DZU, d. d. merged in 2010 into<br />
the management company Alta Skladi, d. d.<br />
** In 2010, Krona Senior, investicijska druţba prilagodljive sestave naloţb, d.d. (investment company with adjustable<br />
investment composition), transformed into SENIOR, v<strong>za</strong>jemni sklad prilagodljive sestave naloţb (mutual fund with adjustable<br />
investment composition).<br />
*** A large share in the increase of the funds managed by Krekova druţba, d. o. o., in 2010 can be attributed to the<br />
transformation of IC into MF.<br />
Source: ATVP<br />
The major part of the MFs’ assets consists of investments in securities, which are traded on the regulated<br />
securities markets (85 %). Equity securities, whose value equalled EUR 1.52 million at the end of 2010, represent<br />
as high as 74.2 % of total equity of MFs. The share of investments in securities of foreign issuers has been<br />
constantly growing to reach 66.8 % of total MFs’ assets at the end of 2010.<br />
Table 23: Breakdown of MF assets as at 31. 12. 2009 and 31. 12. 2010<br />
31. 12. 2009 31. 12. 2010<br />
TOTAL<br />
in % TOTAL<br />
in %<br />
(in EUR)<br />
(in EUR)<br />
1. Cash assets 70,272,888 3.79 65,367,284 3.19<br />
2. Deposits and loans 98,188,059 5.29 74,428,824 3.63<br />
3. Securities and money market instruments traded on a regulated 1,552,067,734 83.61 1,740,662,166 84.98<br />
securities market<br />
3.1 Securities of domestic issuers 410,598,346 22.12 373,209,796 18.22<br />
3.1.1 Equity securities of domestic issuers 326,837,690 17.61 285,409,285 13.93<br />
3.1.1 Debt securities of domestic issuers 83,760,656 4.51 87,800,512 4.29<br />
3.1.3 Other securities of domestic issuers 0 0 0 0<br />
3.2 Securities of foreign issuers 1,141,337,563 61.48 1,367,452,370 66.76<br />
3.1.1 Equity securities of foreign issuers 1,033,244,159 55.66 1,235,422,144 60.31<br />
3.1.1 Debt securities of foreign issuers 108,093,404 5.82 132,030,226 6.45<br />
3.2.3 Other securities of foreign issuers 0 0 0 0<br />
3.3 Money market instruments traded on a regulated securities market 131,826 0.01 0 0<br />
3.3.1 Money market instruments of domestic issuers 0 0.00 0 0<br />
3.3.2 Money market instruments of foreign issuers 131,826 0.01 0 0<br />
4. Money market instruments of prime issuers 0 0.00 0 0<br />
5. Investment coupons and shares of open investment funds 87,712,904 4.73 116,688,570 5.70<br />
6. Composite and derived financial instruments 82,449 0 5,600 0<br />
7. Other transferable securities and other money market instruments 41,718,261 2.25 40,132,934 1.96<br />
8. Receivables + accrued revenues and deferred costs 6,254,694 0.34 11,072,116 0.54<br />
9. Total 1,856,296,990 100.00 2,048,357,492 100.00<br />
Source: ATVP<br />
Figure 8 shows the number of investors in MFs managed by domestic MCs from December 2005 to December<br />
2010. At the end of 2010, there were 421,366 investors, which represents a 7.4 % growth compared to the<br />
previous year, however, it should be underlined that the increase can be attributed to the transformation of two<br />
ICs into MFs. The concentration of investors increased compared to 2009, as three major MFs, measured in<br />
terms of net asset value, accounted for 29.4 % of all investors at the end of 2010 (21.9 % in 2009).<br />
The average value of assets in Slovenian MFs per capita stood at around EUR 1,000 at the end of 2010, which<br />
was 9.1 % more than in 2009 and a half less than at the end of 2007. In that aspect Slovenia is far behind the<br />
average in Europe, in which the average value of assets per capita in the same period was almost EUR 12,000,<br />
which was 13.2 % more than in 2009.<br />
[ 19 ]
Value in EUR million<br />
Number of investors<br />
233.665<br />
241.778<br />
247.113<br />
248.473<br />
274.473<br />
286.792<br />
298.965<br />
308.412<br />
321.627<br />
315.358<br />
312.154<br />
369.431<br />
397.472<br />
393.304<br />
393.718<br />
392.650<br />
392.476<br />
391.193<br />
390.417<br />
393.570<br />
421.366<br />
Figure 6: Number of investors in MFs, December 2005 to December 2010<br />
450.000<br />
400.000<br />
350.000<br />
300.000<br />
250.000<br />
200.000<br />
150.000<br />
100.000<br />
50.000<br />
0<br />
Source: ATVP<br />
In 2008 investors responded to the crisis and withdrew their funds from the MFs, while in 2009 and 2010 they<br />
reinvested them into MFs. In 2010, the MFs managed by MCs based in Slovenia recorded inflows totalling EUR<br />
285 million and outflows in the amount of EUR 268 million. Thus the inflows into MFs amounted to EUR 17<br />
million, which represented 0.9 % of total MF’s assets at the end of 2010.<br />
In European MFs, a total of EUR 166 billion of net inflows were recorded, i.e. 2.1 % of the value of assets in<br />
European MFs at the end of 2010. In 2009, European MFs recorded a similar amount of net inflows, namely EUR<br />
123 billion.<br />
Figure 7: Annual purchases and redemptions of MFs in Slovenia, 2005 to 2010 (in EUR million)<br />
1.000<br />
Purchases<br />
800<br />
600<br />
Redemptions<br />
Net purchases<br />
400<br />
200<br />
342<br />
311<br />
168<br />
468<br />
0<br />
-200<br />
-400<br />
2005 2006 2007 2008 2009 2010<br />
Note: Data until 31 December 2006 calculated on the basis of the exchange rate EUR 1=SIT 239.640.<br />
Source: ATVP<br />
Figure 10 illustrates that the largest outflow of assets from MFs managed by domestic MCs in 2010 was recorded<br />
in July, 38.1 %, and in November (16.2 % of all total net outflows). Compared to the Slovenian MFs, the<br />
European MFs recorded the largest net outflows in June of the same period, namely 42.6 % of all total net<br />
outflows.<br />
-304<br />
18<br />
[ 20 ]
Value in EUR million<br />
Figure 8: Monthly purchases and redemptions of MFs in Slovenia for 2010 (in EUR million)<br />
45<br />
35<br />
25<br />
Purchases<br />
Redemptions<br />
Net purchases<br />
15<br />
17<br />
14<br />
5<br />
9 7<br />
7<br />
-5<br />
-3<br />
-5<br />
-1<br />
-5 -6<br />
-2<br />
-15<br />
-14<br />
-25<br />
Source: ATVP<br />
In 2010, MFs managed by domestic MCs recorded a slightly larger structural adjustment of assets, considering<br />
the investment policy of MFs. Such situation was stimulated by the approval of the Rules on Traceability of<br />
Transfers among Sub-funds of the Same Umbrella Fund, which from 25 October 2008 provides for an exchange<br />
of investment coupons of an individual sub-fund for investment coupons of other sub-funds of the same umbrella<br />
fund with tax deferral. Thus high transfers were recorded by mixed MFs, as those assets were redirected into<br />
equity and bond MFs, which recorded the highest ever net inflows equalling EUR 27 million.<br />
Figure 9: Net inflows by type of MF in 2009 and 2010 (in EUR million)<br />
2010<br />
17<br />
18<br />
Mutual funds<br />
2009<br />
20<br />
31<br />
Equity mutual funds<br />
-40<br />
-7<br />
Mixed mutual funds<br />
-2<br />
-4<br />
Money-market funds<br />
5<br />
27<br />
Debt mutual funds<br />
-1<br />
2<br />
3<br />
1<br />
Mutual funds-funds of funds<br />
Other mutual funds<br />
-50 -30 -10 10 30<br />
Source: ATVP<br />
Net purchases (in mio. EUR)<br />
The year 2010, similar as 2009, recorded a positive weighted average return of all types of MFs (change of unit<br />
value – UV), in which the ratio of the fund’s assets to the total assets of a particular type of mutual fund (equity,<br />
mixed, bond and monetary) was used for weighing. The weighted average of measured nominal return of equity<br />
funds equalled 2.6 %, bond MFs also 2.6 %, followed by mixed MFs with 0.4 %. The lowest fluctuation was<br />
recorded by the return of monetary flows MFs, which fluctuated between 0.02 % and 1.7 %, while the weighted<br />
average annual return stood at 0.8 %.<br />
[ 21 ]
Figure 10: Weighted average of annual changes in AUV by individual group of MFs<br />
%)<br />
in 2010 (in<br />
10,00 Equitiy mutual funds<br />
Mixed mutual funds<br />
8,00<br />
Debt mutual funds<br />
Money-market mutual funds<br />
6,00<br />
4,00<br />
2,00<br />
0,00<br />
-2,00<br />
-4,00<br />
Note: The calculation includes only MFs operating during the entire year 2010.<br />
Source: ATVP<br />
3.2. Investment companies<br />
As a result of transformation process of ICs from authorized investment companies into MFs, the significance of<br />
investment companies in Slovenia has been decreasing, as the volume of trade in shares of investment<br />
companies in 2010 represented only 3.3 % of total turnover at the Ljubljana Stock Exchange. The remaining two<br />
investment companies should transform into mutual funds in 2011.<br />
At the end of 2010 the net value of ICs’ assets stood at EUR 222 million, which represents a 37 % decrease,<br />
compared to the end of 2009. The decrease of the net value of ICs’ assets in 2010 can be attributed to the lower<br />
value of investments and transformation of two out of four ICs into MFs.<br />
Table 24: Net asset value and the number of ICs from 2005 to 2010 (in EUR million)<br />
31. 12. 2005 31. 12. 2006 31. 12. 2007 31. 12. 2008 31. 12. 2009 31. 12. 2010<br />
Total<br />
822.8 906.9 1,228.1 367.0 353.3 222.3<br />
(in EUR million)<br />
No. of ICs 7 7 7 4 4 2<br />
Note: Data until 31 December 2006 calculated on the basis of the exchange rate EUR 1=SIT 239.640.<br />
Source: ATVP<br />
ICs invest predominantly in equity securities traded on regulated securities markets. These investments<br />
amounted to almost EUR 167 million at the end of 2010, or 69.5 % of total investments. Of the total, EUR 151<br />
million or 62.9 % of all IC assets were invested in equity securities of domestic issuers.<br />
Table 25: Breakdown of ICs' assets as at 31. 12. 2009 and 31. 12. 2010<br />
31. 12. 2009 31. 12. 2010<br />
TOTAL<br />
in % TOTAL<br />
in %<br />
(in EUR)<br />
(in EUR)<br />
1. Cash assets 6,647,132 1.76 7,138,651 2.97<br />
2. Deposits and loans 14,470,210 3.84 16,050,000 6.67<br />
3. Securities and money market instruments traded on a 290,234,918 76.92 178,391,375 74.19<br />
regulated securities market<br />
3.1 Securities of domestic issuers 256,645,507 68.02 151,331,789 62.94<br />
3.1.1 Equity securities of domestic issuers 231,034,876 61.23 139,975,693 58.21<br />
[ 22 ]
Value (in EUR)<br />
3.1.1 Debt securities of domestic issuers 25,610,630 6.79 11,.356,095 4.72<br />
3.1.3 Other securities of domestic issuers 0 0.00 0 0.00<br />
3.2 Securities of foreign issuers 33,589,412 8.90 27,059,587 11.25<br />
3.1.1 Equity securities of foreign issuers 33,589,412 8.90 27,059,587 11.25<br />
3.1.1 Debt securities of foreign issuers 0 0.00 0 0.00<br />
3.2.3 Other securities of foreign issuers 0 0.00 0 0.00<br />
3.3 Money market instruments traded on a regulated securities<br />
0 0.00 0 0.00<br />
market<br />
3.3.1 Money market instruments of domestic issuers 0 0.00 0 0.00<br />
3.3.2 Money market instruments of foreign issuers 0 0.00 0 0.00<br />
4. Money market instruments of prime issuers 0 0.00 0 0.00<br />
5. Investment coupons and shares of open investment funds 6,909,174 1.83 1,616,573 0.67<br />
6. Composite and derived financial instruments 0 0.00 0 0.00<br />
7. Other transferable securities and other money market<br />
58,490,408 15.50 37,196,042 15.47<br />
instruments<br />
8. Receivables + accrued revenues and deferred costs 560,181 0.15 56,849 0.02<br />
9. Total 377.312.023 100,00 240.449.490 100,00<br />
Source: ATVP<br />
Despite the gradual transformation of two ICs into MFs, market shares of individual MCs did not change,<br />
compared to 2010, as NFD, d. o. o. still holds a predominant market share.<br />
Table 26: Market shares of individual management companies in terms of net value of IC’ smanaged assets 31.<br />
12. as of 31. 12. 2009 and 31. 12. 2010<br />
Asset Management Company -<br />
MC<br />
Net value<br />
of ICs’ assets<br />
31.12.2009<br />
(in EUR)<br />
Share<br />
(in %)<br />
Net value<br />
of ICs’ assets<br />
31.12.2009<br />
(in EUR)<br />
Share<br />
(in %)<br />
NFD DZU, d. o. o. 206,205,306 58.37 164,223,978 73.89<br />
KD Skladi, d. o. o. 66,050,677 18.70 58,045,432 26.11<br />
DUS KRONA, d. o. o. 59.596.252 16,87 (transformed into MF) -<br />
Krekova druţba DZU, d. o. o. 21.424.593 6,06 (transformed into MF) -<br />
Total 353,276,828 100.00 222,269,411 100.00<br />
Source: ATVP<br />
Figure 13 shows a decrease in the book value of IC shares in 2010, down 13.1 % from 2009. The same can be<br />
said about the average market price of IC shares, which dropped by 11.3 % in 2010, compared to 2009. Similarly<br />
as in 2009, the change between the book value and market value of shares in ICs was also rather constant in<br />
2010.<br />
Figure 11: Average market price for shares in ICs (average price) and average book value of shares in ICs,<br />
December 2009 to December 2010<br />
12,00<br />
10,00<br />
8,00<br />
6,00<br />
6,81<br />
9,49 9,59 9,40 9,42 9,41<br />
7,32 7,32 7,51 7,46<br />
8,94 8,91<br />
7,08 7,05<br />
8,54 8,47 8,51 8,58<br />
8,23 8,25<br />
6,61 6,47 6,37 6,40 6,34<br />
6,04<br />
4,00<br />
2,00<br />
0,00<br />
Dec.09 Jan.10 Feb.10 Mar.10 Apr.10 May.10 Jun.10 Jul.10 Aug.10 Sep.10 Oct.10 Nov.10 Dec.10<br />
market price (average price)<br />
share book value without certificates<br />
[ 23 ]
Discount (in %)<br />
Note: Calculation of average book and market value of IC shares is adapted to the number of all issued shares.<br />
Source: ATVP<br />
In 2010, the discount between the average book value and the average market value of IC shares was<br />
fluctuating moderately. At the end of 2009, the discount of the average market price in terms of the average<br />
book value of shares was 28.2 % and at the end of 2010 it dropped to 26.8 %. A lower difference between the<br />
market price of shares and their book value can be attributed to more trust by investors due to better global<br />
investment anticipations in 2010, and closing of the deadline for transformation of ICs into MFs.<br />
Figure 12: Movement in the discount of the average market price of IC shares to the average book value,<br />
December 2009 to December 2010<br />
30,00<br />
25,00<br />
20,00<br />
28,2<br />
23,6<br />
22,1<br />
20,2<br />
20,7 20,9 20,9<br />
22,6<br />
23,7<br />
25,2 25,4<br />
22,9<br />
26,8<br />
15,00<br />
discount of the market price of IC shares to the average book value<br />
10,00<br />
5,00<br />
0,00<br />
Dec.09 Jan.10 Feb.10 Mar.10 Apr.10 May.10 Jun.10<br />
Jul.10 Aug.10 Sep.10 Oct.10 Nov.10 Dec.10<br />
Note: Calculation of the discount between the average book and market value of IC shares is adapted to the number of all issued<br />
shares of an IC.<br />
Source: ATVP<br />
3.3. Investment funds from the EU Member States meeting the conditions for<br />
marketing and sale in the Republic of Slovenia<br />
The offer of investment funds from the EU Member States in 2010 remained the same, compared to 2009, as 162<br />
investment funds from the EU Member States were traded on the territory of the Republic of Slovenia at the end<br />
of 2010 and at end of 2009.<br />
In 2010, the Agency processed 9 notifications for marketing and sale of units of new investment funds of EU<br />
Member States in the Republic of Slovenia, whereby all investment funds fulfilled the requirements. Furthermore,<br />
9 investment funds from the EU Member States were discontinued in the Republic of Slovenia in 2010.<br />
[ 24 ]
4. MUTUAL PENSION FUNDS<br />
At the end of 2010, there were 6 mutual pension funds – MPFs that held the authorisation to operate, with<br />
253,320 members. Of those, 250,772 were covered by collective insurance (via employers) and 3,296 held<br />
individual insurance and paid the premiums by themselves. The ZPIZ-1 (Pension and Disability Insurance Act)<br />
allows for each insured person to subscribe to one collective and one individual pension plan.<br />
As of the last day of 2010, all MPFs together managed assets in the amount of EUR 762 million, which is 17.7 %<br />
more than at the end of 2009 and 50.7 % above the respective 2008 figure. The increase in the assets is the<br />
result of regular payments into the MPFs.<br />
Table 27: General data on MPF from 2006 to 2010<br />
31. 12. 2006 31. 12. 2007 31. 12. 2008 31. 12. 2009 31. 12. 2010<br />
Number of funds 6 6 6 6 6<br />
Number of operators 5 5 5 5 5<br />
Net collected premium/y (in EUR) 89,828,895 95,067,972 102,058,252 106,144,735 106,377,952<br />
NAV (in EUR) 335,850,615 437,166,906 482,045,486 645,789,532 758,544,855<br />
Market concentration<br />
share of largest fund 56.15 % 57.30 % 58.49 % 60.57 % 60.98 %<br />
share of three largest funds 93.74 % 93.51 % 92.03 % 93.56 % 93.52 %<br />
Note: Data until 31 December 2006 calculated on the basis of the exchange rate EUR 1=SIT 239.640.<br />
Source: ATVP<br />
Because the operators of MPFs are obliged each month to secure the guaranteed return on the net collected<br />
premium, which depends on the yield of government bonds, the MPFs focus primarily on fixed-return<br />
investments, i.e., bonds (58.4 %) and bank deposits (25.8 %). In this way, managers expect to guarantee modest,<br />
but positive returns on collected premiums and avoid any risk of failing to achieve the minimum guaranteed<br />
return.<br />
Table 28: Aggregate structure of investments in MPF on 31. 12. 2009 and 31. 12. 2010<br />
31. 12. 2009 31. 12. 2010<br />
TOTAL MPFs<br />
in %<br />
TOTAL MPFs<br />
in %<br />
(in EUR)<br />
(in EUR)<br />
1. Cash assets 4,885,944 0.75 6,087,708 0.80<br />
2. Bank deposits and loans 165,139,316 25.51 196,217,772 25.76<br />
3. Debt securities 411,194,261 63.51 444,500,458 58.35<br />
3.1 Short-term debt securities 203,582 0.03 41,165,717 5.40<br />
3.1.1 State securities 0 0 13,154,127 1.73<br />
3.1.2 Other securities 203,582 0.03 28,011,590 3.68<br />
3.2 Long-term debt securities 410,990,679 63.48 403,334,741 52.94<br />
3.2.1 Securities of domestic issuers - state 141,912,394 21.92 131,192,344 17.22<br />
3.2.2 Securities of domestic issuers - other 104,918,858 16.21 83,194,840 10.92<br />
3.2.3 Securities of foreign issuers - state 33,157,488 5.12 47,416,582 6.22<br />
3.2.3 Securities of foreign issuers - other 131,001,939 20.23 141,530,975 18.58<br />
4. Shares and other equity securities 17,125,152 2.65 13,594,274 1.78<br />
4.1 Shares of domestic issuers 11,521,369 1.78 7,910,299 1.04<br />
4.2 Shares of foreign issuers 5,603,783 0.87 5,683,974 0.75<br />
5. Other securities 7,020,012 1.08 0 0<br />
6. Investment coupons and IC shares 41,291,560 6.38 100,749,307 13.22<br />
7. Derived financial instruments 0 0 0 0<br />
8. Investment property 0 0 0 0<br />
9. Receivables 751,393 0.12 697,062 0.09<br />
10. Total 647,407,637 100.00 761,846,581 100.00<br />
Source: ATVP<br />
The structure of MPFs investments varies over years, but the share of fixed-return investments, i.e., bank<br />
deposits and bonds, remains stable. Compared to the previous year, the share of short-term securities increased<br />
from 0.03 % in 2009 to 5.4 % in 2010 due to changed accounting rules. The share of investments in shares<br />
[ 25 ]
Number of MPF members<br />
168.816<br />
41.959<br />
170.276<br />
42.450<br />
171.237<br />
43.002<br />
172.409<br />
43.614<br />
174.580<br />
45.938<br />
175.519<br />
47.173<br />
176.959<br />
48.927<br />
178.313<br />
49.590<br />
180.743<br />
50.169<br />
181.968<br />
50.107<br />
183.528<br />
50.664<br />
184.477<br />
51.059<br />
187.191<br />
51.620<br />
188.503<br />
52.367<br />
189.952<br />
53.043<br />
191.026<br />
53.299<br />
193.235<br />
53.532<br />
194.265<br />
53.954<br />
195.355<br />
54.594<br />
196.574<br />
54.437<br />
198.916<br />
54.404<br />
dropped in 2010, i.e., from 2.7 % to 1.8 %. With the aim of providing guaranteed returns, placements in<br />
bonds still prevail, accounting for 58.4 % of total assets of MPFs.<br />
Figure 13: Aggregate structure of investments in MPFs as at 31 December 2010<br />
Source: ATVP<br />
A moderate growth of MPFs’ members was recorded in 2010, compared to previous years. Members included in<br />
collective pension savings schemes still prevail. The share of members included in individual pension insurance<br />
remains insignificant, especially due to low tax relief and the fact that collective pension savings schemes can use<br />
the tax relief more efficiently.<br />
Figure 14: The movement in the number of MPF members, December 2005 to December 2010<br />
270.000<br />
Number of members - closed MPF<br />
Number of members - open MPF<br />
220.000<br />
170.000<br />
120.000<br />
70.000<br />
20.000<br />
-30.000<br />
Source: ATVP<br />
Data on collected assets or net asset value also show the prevailing role of Kapitalska druţba<br />
in the area of MPF operations, taking into account the important fact that Kapitalska druţba manages two MPFs,<br />
of which the Closed Mutual Pension Fund for Civil Servants alone accounts for 61 % of the market share and the<br />
Capital Mutual Pension Fund for 28 % of the market share. Shares of individual operators in the management of<br />
MPF assets remain identical year after year.<br />
[ 26 ]
Figure 15: Share of individual operators in the management of MPF assets in terms of net<br />
value, 31. 12. 2009 and 31. 12. 2010<br />
asset<br />
Probanka<br />
Abanka<br />
Generali<br />
Zav.<br />
Banka<br />
Koper<br />
KAD<br />
1,12<br />
1,14<br />
2,33<br />
2,29<br />
3,03<br />
3,01<br />
4,54<br />
4,60<br />
2010<br />
2009<br />
88,98<br />
88,96<br />
0,00 20,00 40,00 60,00 80,00 100,00<br />
The share of each operator in the management of the MPF<br />
Source: ATVP<br />
In line with the ZPIZ-1, voluntary supplementary pension insurance is provided by MPFs, insurance companies<br />
and pension companies. In terms of the volume of collected assets by the providers of voluntary supplementary<br />
pension insurance, MPFs achieved a 42.6 % market share in 2010.<br />
Figure 16: Volume of operations of pension companies, MPFs and insurance companies, 31. 12. 2009<br />
(left side) and as at 31. 12. 2010 (right side)<br />
Source: ATVP<br />
The highest returns in 2009 were achieved by both MPFs managed by Kapitalska druţba, d. d., and in 2010, the<br />
mutual pension fund Delta managed by Probanka, d. d.. In general, the returns of all MPFs were considerably<br />
lower in 2010, compared to the previous year.<br />
[ 27 ]
Nominal rise in unit value<br />
Figure 17: Return – change of MPF unit value<br />
10,00%<br />
9,00%<br />
2009 2010<br />
8,85%<br />
8,57%<br />
8,00%<br />
7,74%<br />
7,00%<br />
6,00%<br />
5,00%<br />
4,00%<br />
3,00%<br />
2,00%<br />
5,99%<br />
4,69%<br />
3,10%<br />
5,19%<br />
1,83%<br />
6,74%<br />
3,77%<br />
3,10%<br />
4,39%<br />
1,00%<br />
0,00%<br />
Source: ATVP<br />
DELTA A III OVPS BANKE<br />
KOPER<br />
LEON 2 ZVPSJU KVPS<br />
Supplementary pension insurance is a form of insurance, in which the policy holder assumes the investment risk<br />
with a guaranteed return on the net premium paid. The guaranteed return, which is expressed as an annual<br />
return that the manager of the MPF guarantees, may not be lower than 40 % of the average annual interest rate<br />
on government securities with a maturity of more than one year. Fulfilment of guaranteed monthly return is<br />
verified for each MPF on monthly basis. In 2010, all MPFs fulfilled such monthly requirement, which is also<br />
illustrated in the following table.<br />
Table 29: Return of MPF at the annual level and minimum annual guaranteed return in 2010 (in %)<br />
KVPS LEON 2 OVPS<br />
Banke<br />
Koper<br />
A III DELTA ZVPSJU Minimum guaranteed return at the<br />
annual level<br />
Jan.10 8.65 8.17 5.36 7.86 6.47 9.02 1.48<br />
Feb.10 10.08 8.96 5.45 9.24 7.81 8.82 1.48<br />
Mar.10 11.22 9.35 5.93 8.94 8.53 9.40 1.48<br />
Apr.10 9.98 8.74 5.28 7.63 7.64 8.61 1.48<br />
May 10 7.70 8.23 3.51 6.81 7.52 7.31 1.48<br />
Jun.10 6.71 6.84 2.63 6.09 6.58 5.84 1.48<br />
Jul.10 5.36 5.55 1.92 4.77 5.65 5.31 1.33<br />
Aug.10 5.70 5.99 2.03 4.58 5.72 4.86 1.33<br />
Sep.10 4.71 4.54 1.73 3.96 4.50 4.47 1.33<br />
Oct.10 5.23 4.86 1.72 4.25 5.08 4.60 1.33<br />
Nov.10 4.34 3.57 1.58 3.01 4.23 3.74 1.33<br />
Dec.10 4.39 3.77 1.83 3.10 4.69 3.10 1.33<br />
Source: ATVP<br />
Reference number: 0101-3/2010-1<br />
Approved at 391 st Session of the Securities Market Agency Council on 31. 5. 2011.<br />
Damjan Ţugelj, Ph. D.<br />
President of Securities Market Agency Council<br />
[ 28 ]
ANNEX<br />
[ 29 ]
Table 1: Public primary market in 1994 – 2010 (issue value in EUR million)<br />
Bank securities<br />
Securities of other issuers<br />
Year<br />
Issue of shares Issue of debt securities Issue of shares Issue of debt<br />
securities<br />
No. Issue No.<br />
Issue No.<br />
Issue No.<br />
Issue<br />
value<br />
value<br />
value<br />
value<br />
Total<br />
1994 6 35.85 5 14.56 0 0 1 16.90 67.30<br />
1995 5 4.87 7 17.98 3 3.73 2 2.95 29.53<br />
1996 2 3.71 8 35.05 1 1.31 1 3.02 43.09<br />
1997 0 0 5 34.08 2 1.85 1 4.17 40.10<br />
1998 0 0 3 12.86 1 0.56 1 8.35 21.77<br />
1999 0 0 3 13.85 1 4.24 3 11.38 29.47<br />
2000 0 0 4 38.89 1 1.97 1 8.35 49.21<br />
2001 0 0 1 8.99 0 0 0 0 8.99<br />
2002 0 0 1 12.68 0 0 0 0 12.68<br />
2003 0 0 1 16.81 0 0 0 0 16.81<br />
2004 0 0 0 0 1 6.26 0 0 6.26<br />
2005 0 0 0 0 0 0 0 0 0<br />
2006 0 0 0 0 4 19.98 0 0 19.98<br />
2007 3 438.73 0 0 6 114.56 0 0.00 553.29<br />
2008 4 548.15 0 0 4 16.98 1 2 567.13<br />
2009 0 0 0 0 3 500.00 0 0 500.00<br />
2010 0 0 1 100.00 4 30.86 1 30.00 160.86<br />
Notes: * Issue values of primary issues are calculated on the basis of sale prices, which do not include quantity discounts or<br />
interest (indexation or real).<br />
** Data until 31 December 2006 are calculated on the basis of the exchange rate EUR 1=SIT 239.640.<br />
Source: ATVP<br />
Table 2: Issues of securities by the Bank of Slovenia and Republic of Slovenia in 1998 – 2010 (nominal value in<br />
EUR million)<br />
Securities of the Republic of Slovenia<br />
Securities of the Bank of Slovenia<br />
Year<br />
Short-term Long-term Short-term Long-term<br />
No. Nominal No. Nominal No. Nominal No. Nominal<br />
value<br />
value<br />
value<br />
value<br />
Total<br />
1998 8 81.38 4 80.36 4 333.83 0 0 495.58<br />
1999 12 134.92 1 26.31 5 170.06 0 0 331.29<br />
2000 24 269.51 12 155.53 0 0 0 0 425.04<br />
2001 53 790.54 12 218.20 0 0 0 0 1,008.73<br />
2002 76 1,648.39 27 1,575.51 0 0 0 0 3,223.90<br />
2003 76 1,580.91 10 663.27 0 0 0 0 2,244.19<br />
2004 77 2,211.69 15 751.13 0 0 0 0 2,962.82<br />
2005 72 2,092.18 22 1,724.80 0 0 0 0 3,816.98<br />
2006 24 701.05 12 1,034.89 0 0 0 0 1,735.94<br />
2007 11 550.00 1 298.50 0 0 0 0 848.50<br />
2008 9 390.00 1 1,000.00 0 0 0 0 1,390.00<br />
2009 9 1,114.40 3 4,000.00 0 0 0 0 5,114.40<br />
2010 4 156.11 2 2,500.00 0 0 0 0 2,656.11<br />
Note: Data until 31 December 2006 are calculated on the basis of the exchange rate EUR 1=SIT 239.640.<br />
Source: ATVP<br />
Table 3: Offers of securities to a narrow or strictly defined circle of investors in 1998 – 2010 (nominal value in EU<br />
million)<br />
Bank securities<br />
Securities of other issuers<br />
Year<br />
Issue of shares Issue of debt securities Issue of shares Issue of debt securities<br />
No. Nominal No. Nominal value No. Nominal No. Nominal value<br />
value<br />
value<br />
Total<br />
1998 0 0.00 2 4.91 3 2.46 3 0.58 7.96<br />
1999 1 1.74 5 31.66 20 23.61 7 11.06 68.08<br />
2000 0 0.00 5 28.57 26 123.48 7 15.45 167.50<br />
2001 6 26.14 6 53.93 18 62.98 16 48.08 191.12<br />
2002 4 6.90 7 74.60 31 69.85 8 27.99 179.34<br />
[ 30 ]
2003 4 4.70 11 259.13 23 35.75 12 64.71 364.28<br />
2004 3 7.21 16 435.52 17 51.08 11 131.64 625.46<br />
2005 6 10.84 13 425.19 15 231.78 10 208.06 875.86<br />
2006 4 18.05 8 126.47 16 39.21 9 28.49 212.22<br />
2007* 8 0 8 220.59 19 0 3 30.58 251.17<br />
2008* 4 0 6 1,550.43 22 0 3 72.42 1,622.85<br />
2009* 0 0 9 698.90 37 0 15 162.88 861.78<br />
2010* 1 0 5 110.00 31 114.36 2 40.00 264.36<br />
Notes: * For the period 2007 to 2010 nominal values of issued shares are not stated as the shares were issued as no-par value<br />
shares.<br />
** Data until 31 December 2006 are calculated on the basis of the exchange rate EUR 1=SIT 239.640.<br />
Source: ATVP<br />
Table 4: Admittance of securities to trade on the regulated market, 1998 – 2010 (nominal value in EUR million)<br />
Bank securities<br />
Securities of other issuers<br />
Year<br />
Issue of shares Issue of debt securities Issue of shares Issue of debt<br />
securities<br />
No. Nominal No. Nominal No. Nominal No. Nominal<br />
value<br />
value<br />
value<br />
value<br />
Total<br />
1998 0 0 2 3.76 6 55.24 0 0 59.00<br />
1999 0 0 2 23.55 5 23.77 1 9.06 56.38<br />
2000 1 2.22 2 16.69 3 30.98 1 4.31 54.20<br />
2001 0 0 4 41.22 0 0.00 0 0.00 41.22<br />
2002 0 0 5 74.54 4 22.65 1 3.98 101.16<br />
2003 0 0 6 224.43 4 18.59 1 38.87 281.89<br />
2004 0 0 10 173.72 3 30.17 3 95.90 299.79<br />
2005 0 0 12 334.62 9 178.76 6 169.12 682.50<br />
2006 0 0 7 142.22 7 305.39 2 82.56 530.17<br />
2007* 0 0 7 151.66 10 72.49 1 10.00 234.15<br />
2008* 1 102.00 9 367.58 4 29.33 2 45.42 544.33<br />
2009* 0 0 2 17.90 1 6.95 1 50.00 74.85<br />
2010* 0 0 4 98.53 3 16.51 2 40.25 155.29<br />
Notes: * Data on the value of shares admitted to trading on a regulated market in 2007, 2008 and 2009 cannot be compared to data from<br />
previous years in terms of nominal value, since most of them were issued as no-par value shares without nominal value. Neither can they<br />
be evaluated at market value, since the market price of shares is determined after the shares have actually been traded on a regulated<br />
market. Therefore, the value of share issues from the years 2007, 2008 and 2009, which were admitted to trading on a regulated market, is<br />
shown for the purpose of comparison in the amount that reflects the value of share capital for which the shares admitted to trading on a<br />
regulated market were issued, or in the amount that reflects the value of share capital by which the issuer's capital had been increased and<br />
later the listing expanded by shares (in cases the shares of previous issues of an individual issuer have already been admitted to trading<br />
on a regulated market prior to capital increase).<br />
** Data until 31 December 2006 are calculated on the basis of the exchange rate EUR 1=SIT 239.640.<br />
Source: ATVP<br />
Table 5: Takeovers in 1998 – 2010 (in EUR million)<br />
Year Successful takeovers Unsuccessful takeovers<br />
Number of Nominal Market value Number of Nominal Market value<br />
takeovers<br />
value of of takeovers takeovers<br />
value of of takeovers<br />
takeovers<br />
takeovers<br />
1998 0 0 0 2 10.45 25.69<br />
1999 8 35,52 58.12 1 6.05 14.53<br />
2000 10 45.45 131.75 0 0 0<br />
2001 14 101.66 500.55 0 0 0<br />
2002 18 142.13 1,214.13 0 0 0<br />
2003 7 26.11 71.35 0 0 0<br />
2004 29 231.28 290.97 1 4.12 6.18<br />
2005 20 125.24 261.31 2 28.15 34.81<br />
2006 21 166.32 347.87 2 19.94 32.70<br />
2007 33 8.52** 1,237.83 2 0 28.47<br />
2008 20 0* 237.95 0 0 0<br />
2009 12 0* 24.82 0 0 0<br />
2010 6 0* 2.33 0 0 0<br />
[ 31 ]
Notes: * In 2007, the nominal value of a takeover can only be determined in four cases, while in the rest of the cases this<br />
information cannot be provided since shares were issued as no-par value shares without nominal value. No data is available on<br />
the nominal value of takeovers in 2008 to 2010, since shares were issued as no-par value shares.<br />
** Data until 31 December 2006 are calculated on the basis of the exchange rate EUR 1=SIT 239.640.<br />
Source: ATVP<br />
Table 6: Structure of trading in financial instruments on the regulated market<br />
Year Structure of trading (in %)<br />
Shares Bonds IF Pension<br />
coupons<br />
Short-term FI<br />
Total<br />
1995 51.4 25.8 0.0 0.0 22.8 100.0<br />
1996 77.1 15.2 0.0 0.0 7.7 100.0<br />
1997 80.9 10.6 0.0 0.0 8.5 100.0<br />
1998 77.2 12.7 5.8 0.0 4.3 100.0<br />
1999 63.4 13.3 20.3 0.6 2.4 100.0<br />
2000 53.9 20.9 23.3 0.7 1.2 100.0<br />
2001 68.0 14.8 15.9 0.5 0.8 100.0<br />
2002 58.0 23.0 17.8 1.1 0.1 100.0<br />
2003 43.9 38.1 17.9 0.0 0.1 100.0<br />
2004 56.3 28.6 15.1 0.0 0.0 100.0<br />
2005 51.1 40.8 8.1 0.0 0.0 100.0<br />
2006 80.2 10.4 9.4 0.0 0.0 100.0<br />
2007 89.6 5.1 5.3 0.0 0.0 100.0<br />
2008 74.1 20.0 5.9 0.0 0.0 100.0<br />
2009 79.6 17.3 3.1 0.0 0.0 100.0<br />
2010 73.3 22.1 4.6 0.0 0.0 100.0<br />
Source: Ljubljana Stock Exchange.<br />
[ 32 ]