UAIB Review of the Institutional Investor Asset Management & Pension Fund Administration Industries in Ukraine in Q1 2021. General Results

At the beginning of 2021, the asset management industry in Ukraine maintained a significant growth rate in terms of both quantity and total asset value, and a further increase in the main domestic index to world leadership in growth during this period supported the positive results of funds – as well as higher rates on public debt papers. However, the growth of the open-ended CII sector was further facilitated by the extraordinary net inflow of capital, while in venture CII - further active creation of new funds in corporate form, which remained an attractive tool for attracting private investment in companies and projects outside public markets.

Number of market participants

Asset Management Companies (AMCs)

In Q1 2021, the total number of asset management companies increased by three to 306. During January-March, 8 new AMCs were created, and 5 ceased operations. Of all AMCs, 278 managed between one and 62 funds, and almost 99% of such companies managed at least one venture CII.

Administrators of private pension funds (ANPFs)

The number of ANPFs in Q1 2021 did not change: 19. Among them were 6 companies that carried out exclusively NPF administration activities, the rest combined it with asset management.

Collective investment institutions (CIIs)

In Q1 2021, 66 new CII were registered, and 61 funds reached the standards. The total number of CII that reached the minimum assets (formed) ratio grew in the 14th consecutive quarter and amounted to 1,523 (+ 3.0% in Q1) at the end of March.

Non-state pension funds (NPFs)

The number of NPFs under management as of March 31, 2021 was 57 (excluding the corporate fund of the NBU), including 47 open, 4 corporate and 6 professional. A total of 34 AMCs managed NPF assets.

Insurance companies (ICs)

The number of insurance companies that transferred their assets to AMC management and the number of AMCs that provided such services did not change in Q1 2021: as of March 31, 2021, one such company continued to manage the assets of two insurance companies.

Assets under management and NAV

All institutional investors

Total assets under AMC management increased by 5.8% in the first quarter and as of March 31, 2021 reached UAH 449,426 million. Over the last 12 months, they accelerated their growth to 25.2%.

Collective investment institutions (CIIs)

The total assets of all CII under management, including those that have not yet reached the standard, also grew by 5.8% in Q1 2021, and by 22.5% in the last year. As of March 31, 2021, they amounted to UAH 447,262 million.

As of March 31, 2021, the assets of existing CII, which reached the minimum assets (formed) ratio, reached UAH 441,172 million. In Q1 they grew by 6.5%, and in the year - by 23.6%.

The value of net assets of all formed CII as of March 31, 2021 reached UAH 339,946 million. In the 1st quarter, it grew by 5.6%, and for the year - by 23.9%.

The total net movement of capital in open-ended CII in Q1 2021 was positive for the fifth time in a row and reached an unprecedented UAH 60.5 million. The annual net inflow into the sector was also the highest in its history: UAH +75.0 million.

Non-state pension funds (NPFs)

In January-March 2021, the assets of NPFs managed by AMC grew by 3.7%, and for the year - by 20.7%. As of March 31, 2021, they reached UAH 1,996 million.

Insurance companies (ICs)

The assets of the IC under the management of AMC decreased by 1.5% in Q1 2021, but increased by 28.2% for the year and amounted to UAH 168 million at the end of March.