UAIB Analytical Review of the Asset Management Market in Ukraine in Q3 2019. General Results

In Q3 2019, the Ukrainian CII Asset Management Industry continued to grow: the number of funds and the value of their assets under management continued to increase. At the same time, unlike Q2, both the number of CII undergoing liquidation at the end of September and new funds that had not yet reached the norm decreased. Investors' demand for venture CIFs has only grown during this period.

Number of market participants
 

Asset Management Company (AMC)

In Q3 2019, the number of asset management companies decreased from 295 to 294 - more than they were created by exiting the market for one Kyiv company.

Of all AMCs in operation, as of end-June, 282 companies were managing from one to 45 CIIs, and almost 99% of all such AMCs were managing at least one venture capital fund.

Collective Investment Institutes (CII)

In July-September 2019, 33 new CIIs were registered. Given the funds closed during Q3, as of September 30, 2019, the number of existing registered CIIs, according to UAIB, increased to 1848 (+ 1.4% for Q3).

In Q3 2019, the number of CII that reached the minimum assets ratio (generated) accelerated its growth and reached 1284 (+25 funds or + 2.0%) by the end of September.

Non-State Pension Funds (NPFs)

The number of NPFs in management as of 30.09.2019 increased from 58 to 60 (excluding the NBU corporate fund) - including 47 open, 7 corporate and 6 professional ones. Total assets of the NPF were still managed by 33 AMCs.

Insurance Companies (IC)

The number of ICs that transferred their assets to AMC management as well as AMC providing such services remained unchanged during July-September 2019 - there were 2 such insurance companies as at September 30, 2019, and there was one such AMC.

Assets in management and NAV

The aggregate total assets under the management of AMC in Q3 accelerated its growth to + 3.3% and as of 30.09.2019 reached UAH 349 965.9 M. In September, the year on year growth rates continued to slow (+ 16.4%).

Collective Investment Institutes (CII)

Total CII assets under management, including those that have not yet reached the minimum assets ratio, also increased by 3.3% in Q3 2019 and by 16.4% for the year (from the beginning of the year amounted to 11.2%), to UAH 348 304.6 M.

Assets of operating CIIs that reached the minimum assets ratio ("recognized" CIIs) experienced a similar increase (+3.3) in the third quarter, grew by 14.5% in the first nine months of 2019, and decelerated to + 15.8%. As of 30.09.2019 they amounted to UAH 339 921.7 M. Quarterly growth occurred almost exclusively at the expense of venture capital funds, whose number continued to increase, although interval CIIs also increased during this period (the number did not change, but the value of portfolio investments of these CIIs increased overall). Other sectors, including open-ended funds, experienced a decline in assets amid a further decline in stock indices in Q3.

In July-September 2019, the net asset value of CII ("recognized") assets accelerated quarterly growth to 3.7% and slowed down to + 13.6% in September 2018 (from the beginning of the year - added 12.1%). As of September 30, 2019, CII NAV reached UAH 264 302.1 M.

Non-State Pension Funds (NPFs)

NPF assets in the management of AMC in Q3 2019 slowed quarterly and year-on-year growth - to 3.0% and 16.6%, respectively, and for the first 9 months of the year - added 13.6%. As of September 30, 2019, they reached UAH 1 550.3 M.

Insurance Companies (IC)

Assets of UK in the management of AMC for Q3 2019 accelerated to 5.4%, and since the beginning of the year increased by 22.4%, which continued slowing their annual fall to -13.2% in September. As of September 30, 2019, these assets amounted to UAH 97.7 M.