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Tomislav Rizak
Episode · #217

MOJA MIROVINA Tomislav Ridzak

Guest Tomislav RizakHosted by Marijana MatkovićMay 3, 2026
About this episode
What you'll hear in this conversation

The conversation addresses a quiet anxiety many people share: the future of their pension savings. In Croatia, nearly two-thirds of the mandatory pension fund assets, worth over HRK 114 billion, are held in government bonds. While these bonds historically delivered solid returns, that era is ending. Tomislav Rizak, a board member at HANFA, Croatia's financial services regulator, explains why these funds are so heavily invested in state debt, and what that means for future returns. He outlines the shift global pension funds are making towards alternative investments, and how Croatian funds are slowly following suit, even without a clear pipeline of local projects. This discussion will make you reconsider the role of pension funds not just as a savings vehicle, but as a potential engine for national economic growth — and the challenges of making that happen.

Insights from the conversation
What to take from this episode
01
Croatian mandatory pension funds hold nearly two-thirds of their HRK 114 billion assets in government bonds, a figure often seen as problematic. Tomislav Rizak explains this isn't solely a fund manager's choice, but a consequence of legal minimums and a capital market that has historically offered few new equity issues, making state debt the dominant investment option by volume.
02
Croatian government bonds delivered strong returns for years, not just from coupon payments, but from the rising market value of the bonds themselves. As Croatia's perceived credit quality improved through EU and NATO accession, its bonds became more valuable, demonstrating how geopolitical shifts can directly enhance the value of state-backed investments.
03
The bond returns that Croatian pension funds have delivered for decades are becoming impossible to sustain, a challenge Tomislav Rizak notes is universal for pension systems globally. With interest rates low worldwide and Croatia's credit rating already improved, bond-heavy portfolios face diminishing returns, pushing funds to seek new strategies.
04
To offset declining bond returns, pension funds are increasingly shifting towards alternative investments, from private equity and venture capital to infrastructure projects like wind farms. This move away from traditional, liquid assets signals a necessary strategic pivot to higher-risk, higher-reward opportunities to secure future member returns.
05
Croatian pension funds participated indirectly in the investment in Infobip, a prominent local tech company, by allocating capital to a specialized US venture capital fund. Tomislav Rizak explains this model allows funds to access high-growth, complex assets without needing to develop in-house expertise for every niche, a strategy the regulator endorses.
06
For over fifteen years, Croatia has discussed using its domestic pension fund capital for national development projects, yet these ideas rarely materialize. Tomislav Rizak acknowledges the frustration that significant local capital remains available, but a pipeline of concrete, investable opportunities from the state has not been established.
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