2024: A Record-Breaking Year for Collective Savings Industry
Net Assets Reach 7,004.4 Billion TND, Up 1,217 Billion TND Year-Over-Year
As of December 31, 2024, the collective savings industry has achieved a remarkable milestone, with net assets totaling 7,004.4 billion TND, a significant increase of 1,217 billion TND compared to the previous year. Although the net collection was 39.6 billion TND lower than the previous month, ending the year with net assets exceeding 7 billion TND is a notable achievement.
The growth is largely attributed to the appreciation of bond vehicles, which increased by 1,118.8 billion TND throughout the year. The main drivers of this growth include the high volume of state bond issuances, particularly the national loan that collected over 5,099 billion TND across four tranches. The high yields also contributed to the strong attractiveness of these investments for investors. Meanwhile, Mixed and Equity OPCVMs (Open-Ended Investment Companies) gained 95.8 billion TND and 2.4 billion TND, respectively, over the year, benefiting from a buoyant stock market.
Outlook for 2025: A Repeat of Success
We believe that the success will be repeated in 2025, driven by several factors.
Firstly, new bond issuances, both corporate and sovereign, are expected to be introduced. The public deficit financing scheme is promising for institutional investors, with 21,872 billion TND in financing, including 4,800 billion TND in sovereign bond issuances.
Secondly, investment funds are increasingly composed of high-yield placements, ensuring a comfortable return for investors. As interest rates are expected to decrease in the second half of 2025 (according to our estimates), the attractiveness of these vehicles will intensify, as the decline in market rates will only be reflected in OPCVM yields later on.
Thirdly, stock exchange intermediaries and management companies will continue to promote collective management, as it is highly profitable on all fronts: placement commissions on bond issuances and management fees that stabilize their treasuries.
While the goal of reaching 8 billion TND in net assets next year is ambitious, it is achievable, depending on the evolution of the economy and investment. A gloomy economic situation could actually play in favor of such a performance, as no other investment can guarantee both yield and liquidity.
