Slovenian SBITOP TR Index: A Global Star in 2024
Analysis by Divo Pulitika, Fund Manager, InterCapital Asset Management
The Slovenian SBITOP TR index delivered an extraordinary performance in 2024, becoming one of the global stars among equity markets. In gross total returns measured in euros, the index grew by an impressive 42%, outperforming major benchmarks like the Nasdaq 100 (35%), S&P 500 (34%), BET-TR (15%), and Stoxx Europe 600 (10%). This remarkable result was driven by strong earnings growth, solid dividend payouts, and robust contributions from all nine of its constituents.
Every company in the SBITOP TR index contributed positively to its stellar performance. The standout performer was NLB Banka, Slovenia’s largest banking institution and a regional leader in financial services. Its strategic focus on profitability and expansion into neighboring markets translated into an 11.96% contribution to the index’s growth, making it the top contributor. Krka, the pharmaceutical heavyweight and one of Slovenia’s most recognized global brands, added 9.89%. Petrol, Slovenia’s largest energy company and a leading provider of oil derivatives, gas, and renewable energy solutions in the region, added 8.57%.
Smaller but meaningful contributions came from Sava Re, a key player in Slovenia’s insurance sector and among the largest reinsurers in the region, which contributed 3.64% to the index, Triglav, another major insurer and the largest insurance group in Southeast Europe, which brought 2.43% and Luka Koper, the operator of the Port of Koper, Slovenia’s primary gateway for maritime trade, that added 1.91%. Cinkarna Celje, an industrial powerhouse specializing in titanium dioxide production and chemical products, brought 1.88%. Telekom Slovenije, the country’s leading telecommunications provider, contributed 1.72%. Finally, Equinox, a smaller player in the real estate sector, added a modest 0.06%.
Notably, the largest part of the index’s growth was attributed to earnings, which accounted for 43%, while dividends added 9%. Despite this growth, the price-to-earnings (P/E) multiple contracted from 8.3x at the start of the year to 7.7x at the end, effectively making the index 10% cheaper.
The strong momentum carried over into 2025, as the SBITOP TR index surged by another 15.3% in January alone, far surpassing other major indices in euro terms. For comparison, the Stoxx Europe 600 gained 6.4%, the S&P 500 rose 2.1%, and both the Nasdaq 100 and BET-TR advanced by 1.6%. Following this rally, the SBITOP TR index now trades at slightly below 9x earnings, making it comparable to BET in terms of valuation but without the added challenges of political and fiscal uncertainty seen in Romania. By contrast, other major indices such as the Nasdaq (33x), S&P 500 (25x), and Stoxx Europe 600 (15x) remain significantly more expensive.
Over a longer horizon, the SBITOP TR index has demonstrated its resilience and competitive edge. Over the past 10 years ending January 31, 2025, the index achieved a total return CAGR of 15.8%, outperforming both the S&P 500 (14.6%) and the Stoxx Europe 600 (7.5%). Although it was narrowly edged out by BET-TR (16.6%), the SBITOP TR index remains a standout performer among European markets, offering strong returns driven by both price appreciation and dividends. While the Nasdaq 100 led with an annual return of 20%, the SBITOP TR index stands out for its balance of growth and yield. Over the same period, dividends contributed 6.5% annually to SBITOP’s returns, underscoring the index’s appeal to income-focused investors.
Companies within the SBITOP index are known for their consistent and substantial dividend payouts, a trait shared with Romania’s BET index. This dividend culture has been a key factor in attracting investors to the Slovenian market, offering a reliable source of income alongside strong capital appreciation. InterCapital Asset Management introduced an ETF tracking the SBITOP TR index in late 2020, listing it on both the Zagreb and Ljubljana Stock Exchanges. To date, the ETF has attracted 20 million euros in assets from more than 700 investors. In the coming weeks, the ETF will also be listed on the Bucharest Stock Exchange, providing Romanian investors with direct exposure to the Slovenian market, traded in RON.
This new ETF listing will enable Romanian investors to benefit directly from the performance of the SBITOP TR index without the complexities associated with investing in foreign markets. Unlike investing in individual Slovenian stocks, where low liquidity and accessibility can pose challenges, ETFs offer seamless exposure to the entire index with built-in diversification. It eliminates the need to construct and maintain a portfolio of individual companies or closely monitor their financial results, allowing investors to focus on the overall market performance. Furthermore, the ETF reinvests gross dividends, bypassing any dividend tax effects, while providing the liquidity and ease of trading on the local Bucharest Stock Exchange.
The SBITOP TR index’s stellar performance reflects a combination of strong fundamentals, attractive valuations, and generous dividends. Its ability to outperform major global benchmarks while maintaining lower valuations makes it a compelling option for both growth and income-focused investors. As 2025 begins with impressive momentum, the SBITOP TR index continues to prove its status as a hidden gem in global equity markets, offering significant potential for those looking beyond the traditional heavyweights.
____________________
About Đivo Pulitika
Đivo Pulitika is a portfolio manager at InterCapital Asset Management, Croatia’s leading asset management company. Pulitika began his career in the financial industry while studying at the Faculty of Economics and Business in Zagreb, initially joining Intercapital’s analysis department. Over time, he became the head of this department, where he focused on promoting investments in regional capital markets, conducting stock valuations, and organizing roadshows and conferences for clients. In 2019, he transitioned to InterCapital Asset Management, where he led the equity analysis department. Pulitika is also responsible for preparing and implementing policies on responsible and sustainable investing. His expertise and leadership have significantly contributed to the firm’s success in managing investment funds and individual portfolios for a wide range of clients.
About InterCapital Asset Management
With nearly 20 years of experience and a portfolio that includes 19 classic funds and 5 ETFs, InterCapital is the largest independent asset management company in Croatia, managing EUR 500 million. Over the years, InterCapital has demonstrated expertise and innovation in investment fund management with multiple products and services launched. Namely, InterCapital is 1st SEE asset manager that has pivoted from classic UCITS funds into ETFs and digital robo-advisory space with its APP Genius. InterCapital has a clear path to offer cost-effective and attractive products across the SEE region, following its mission to develop regional capital markets by implementing the best global standards and practices.