How does Triglav Penzisko Drustvo AD Skopje plan to address the challenges and opportunities in the field of the mandatory fully funded pension insurance in the coming years, and what are the predictions for 2024 in this industry?

We are dedicated to advancing our professional endeavours by maintaining the momentum and concentration on executing our strategic and tactical agendas, as well as our business objectives. They are designed to benefit both current and future members of the mandatory and voluntary pension funds under our management. Stipulated goals include enhancing public understanding and awareness of the country's pension system and providing top-tier customer service to all our members and future beneficiaries. By seamlessly integrating these vital aspects into our everyday marketing efforts, we strive to elevate Triglav Pension Fund's brand recognition and foster trust and loyalty among our membership toward the system we manage.

In our pursuit to grow our member base, we are equally committed to ensuring stable investment returns on the assets we oversee, while striving to maintain a minimal return-to-risk ratio.

Furthermore, we are concentrating on nurturing and evolving our workforce and organizational framework. Over the medium to long term, this approach is aimed at seizing and leveraging market opportunities presented by the reformed pension system in Macedonia.

Can you reveal the key trends related to individual retirement accounts and mandatory pension insurance that will shape your business in near future?

The national pension system reform is still in its evolving phases and has not yet fully matured. Despite being effective for the past 18 years, mandatory pension funds continue their constant grow in terms of acquired members and accumulated assets under management. Therefore, it's clear that newly established system is still juvenile and requires further development to achieve complete maturity and demonstrate its functional capabilities to reach up to the main goals designed in the reform. At present, the System serves over half a million members and fulfils its fiduciary duty in managing the pension savings of the current members.

The professional duty of all market stakeholders, also incorporating the state regulatory authorities and the supervisory agency, is to ensure the growth, functionality, and success of the system, regardless of the various risks and obstacles present in the business landscape, both nation and worldwide.

How does Triglav Penzisko Drustvo AD Skopje plan to ensure the safety and sustainability of funds in the individual accounts of its members, and what tools and strategies are in place to achieve this goal?

The market's instability and unpredictability in 2023 are anticipated to continue into 2024. The impact of rising interest rates is expected to intensify over time, and a slowdown in global economic growth seems inevitable. However, real income growth has begun to pick up again due to wage increases and a decline in historically high inflation, potentially leading to increased consumption and a stable economic foundation. Nonetheless, there could be negative repercussions on corporate profit margins as maturing loans are refinanced at higher rates or fixed periods for existing loans expire, possibly amplifying labour market pressures. The focus is likely to shift back to central banks' policies, including the end of nearly two years of coordinated tightening by major banks and their initial rate reductions. Additionally, geopolitical conflicts, from the ongoing war in Ukraine to recent turmoil in Israel, may also impact the markets.

As a reliable asset manager, we adopt a proactive investment approach. Our team of experts vigilantly tracks market developments, making portfolio decisions straightforward to our members' best interest. Our strategy involves investing in well-established, market-leading companies that we believe can better withstand the upcoming period of volatility and prolonged high interest rates. Triglav Penzisko Drustvo AD Skopje has implemented a thorough risk management system that actively monitors risk levels in the investment process. We have developed specific indicators to signal when a risk threshold is breached, allowing us to take preventive measures promptly. Our strategy emphasizes the bigger picture, advising against focusing on short-term fluctuations. Instead, we aim to position our portfolios based on long-term trends and perspectives in order to maximize the expected returns.

Can you provide information on the innovations and digital solutions applied in your organization's operations to ensure better service to your members?

As one of the most recent participants in the system, our priority is to offer innovative solutions that enhance ease and advantages for our members. Prompted by the challenges posed by the COVID-19 crisis, we have created a digital based solution to ease the distant contact between the potential members and our representatives so they can communicate in safe and cozy environment from their desk or even mobile appliance. This platform is continually being improved in collaboration with all participants in the system. Our goal is to give prospective members multiple options to obtain the benefits of enhanced mobility for either opening a new pension account or transferring their accumulated savings in one of our pension funds. Additionally, we aim to advocate for a sustainable and environmentally friendly option, reflecting current trends in environmental protection and public awareness.

How do you plan to enhance communication and transparency towards your members, and how will Triglav Penzisko Drustvo AD Skopje strengthen its position in the industry and fulfil its mission of shaping a secure future?

Triglav Penzisko Drustvo is nearing the completion of its mobile app, which will enhance the transparency and enable members to track the transactions and monitor their pension savings on a daily basis. Concurrently, the core mission and vision of Triglav Penzisko Drustvo AD Skopje involve elevating the public's understanding and awareness of mandatory and voluntary fully funded pension insurance. To achieve this, we are actively engaging in fieldwork and maintaining direct contact with both existing and potential members. A primary focus is to enhance the efficiency of our sales network, particularly by establishing new business partnerships, and to broadly promote the System.

In the upcoming years, we anticipate offering greater accessibility and improved service quality to all citizens. Additionally, we aim to increase our market share, positioning the company as an attractive option and reliable partner in terms of fully funded pension insurance on the Macedonian market.