Q3 2017 highlights of the Ukrainian asset & fund management industry

Investment Institutions assets under management at the end of Q3 2017. This represents a 2.5%growth (in UAH terms) for the quarter and 7.8% for the year to date. Annual rate, however, was negative at 2.2% as at end September 2017.

In open-ended CII (funds), total NAV amounted to UAH 72 million in Q3 2017thanks to growth of 11.9% (and 24% year-to-date). Quarterly net sales were positive for the second time in a row and grew threefold to UAH 2.5 million in Q3 2017, after UAH 0.9 million in Q2 2017. Annual flow turned positivefor the first time since Q2 2011 and reached UAH 1 million. Meanwhile, the stock market jumped by 13% in Q3 2017 and showed 46%-growth over the past 12 months in September (as measured by the UX Index).

NAV of closed-end funds with public offerrose by 4.1% in Q3 2017 (although declined by around 8% year-to-date and annually) to stand at UAH 2,494 million. Total net assets ofclosed-end funds, including those with private placement, rose by 6.8% in the quarter to UAH 7,868 million (+4.3% YTD and -4.6% annually).

Venture CIIs* total NAVagain reversed dynamics to rise by 2.1% in Q3 2017 (8.3% YTD, -4.1% annually), to UAH 195,621 million.

Number of AMCs grew for the second time this year on a quarterly basis – to 300 companies, while the number of acting formed (‘established’) CII declined for the first time over the past year – to 1153. However, the number of newly registered CII (mainly in the venture funds sector) continued to grow: 20 funds emerged in Q3 2017 (+0.9% of the acting registered CII in total).

Foreign investors (institutional and individual) in Ukrainian CII comprised 0.2% of all CII investors in Q3 2017 holding 22.5% of their total NAV – up from 21.6% in Q2. Of those, 92.7% were legal entities, six of which invested in open-ended funds – down from eight in Q2.

Meanwhile, 75.9%of theopen-ended Asset management companies in Ukraine hadUAH 248 billion (EUR 7.9 billion) of the formed Collective funds’ NAV belonged to domestic retail investors who accounted for 98.7% of all their investors.

Open-ended funds’ mean RoR in Q3 2017 grew sharply to +5.6%, and with +19.5% YTD and +21.6% annually they led by 9-month and annual performance among the fund sectors based on the fund type. However, the closed-end funds with public offer were leading in the 3rd quarter, with +9.3% mean gross return.

Equity funds were still on top among the publicly offered diversified and specialised CII** as throughout the past year, with the quarterly performance of +8.9% in Q3 2017. Their mean RoR YTD was 30.3% while the annual gross rate slightly declined to +45.7%. Bond funds had the lowest return in the quarter, although sharply risen to +3.6% in Q3 2017.

Pension funds’ assets under management also continued growing in Q3 2017 (+5.3% over the quarter) and reached UAH 1,171 million.

Insurance firms’assets under management grew by 5.0% in the quarter to stand at UAH 87 million as at end September 2017.

* Venture CIIs are closed-end ‘non-diversified’ funds with private issue, mainly investing in private equity and debt.

** See fund classification at the UAIB website: http://www.uaib.com.ua/eng/abcpeople/cii_manual.html

See more at the UAIB website:

The Ukrainian Fund Market in Figures

Quarterly & Annual CII Industry Reviews

Full report in Ukrainian

Full report in English to be published soon

For enquiries, please contact Anastasiia Gavryliuk, Director of International Relations - Senior Analystat gavrylyuk@uaib.com.ua.