InterCapital Presents First Croatian Monetary Fund

Lauren Simmonds

croatian monetary fund

October the 31st, 2023 – InterCapital has presented its very first Croatian monetary fund, and there are some high expectations of it to say the least.

As Poslovni Dnevnik writes, InterCapital Asset Management (ICAM), the leading independent asset management company in the Republic of Croatia, recently presented its new fund – InterCapital Euro Money Market UCTIS ETF. It is the first open investment Croatian monetary fund, currently one of the safest and most profitable investment products on the market and a real alternative to time deposits or keeping money in traditional bank accounts.

An alternative to low-interest banks

In an environment where traditional banks offer extremely low interest rates on deposits, InterCapital Asset Management has entered the market with a solution with an expected net return of 3.65%* per year. The expected yield is based on the yield of the securities in which the fund invests as of October the 30th, 2023. The regular management fee of 0.15% puts this fund in the class of the most competitive European funds of the time, and in order to further stimulate the interest of investors, management fees will remain free until the end of 2023.

“Our Money Market ETF represents a turning point in the regional financial sector. It’s the first such fund in Croatia and the second in Europe, and it offers a unique opportunity for conservative and flexible investment,” said Ivan Kurtović, president of InterCapital Asset Management.

ICAM’s Croatian monetary fund is invested in short-term securities of the highest quality issuers from the Eurozone, which in turn enjoy a high credit rating. By purchasing a share of the fund, the investor is exposed to the credit risk of European countries whose average credit rating is AA+, i.e. higher than the rating of the Republic of Croatia’s rating.

Tax exemptions

“Our ETF fund, although it has a target yield significantly higher than the available alternatives and interest rates in banks, isn’t fixed-term. I think the biggest advantage is that investors have the freedom and flexibility to access their funds whenever they want, without complications. Additionally, if the investor has been investing in the fund for more than two years, he’s exempt from taxation,” added Niko Maričić, manager of the InterCapital Euro Money Market ETF.

Listed on the Zagreb Stock Exchange, this ETF offers transparency and accessibility for a wide range of investors, and their currently planned expansion to the Ljubljana Stock Exchange will only increase this.

“We’re extremely honoured that the Zagreb Stock Exchange has the opportunity to support this initiative and enable investors to have the opportunity to invest in the fastest growing type of investment funds on the domestic market. We’re particularly pleased that this is one of the first such cash ETFs in Europe and that after three stock ETFs, we’re now able to offer an investment option to more conservative investors as well. After the success of the government bond from back in March this year, we certainly expect great interest from investors”, said Ivana Gažić, president of the Zagreb Stock Exchange.

The Genius app

At the beginning of 2024, investors in the new Croatian monetary fund also will get an additional opportunity to invest in ETFs – through ICAM’s roboadvisory application – Genius.


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