UAIB Analytical Review of the Asset Management Market in Ukraine in Q2 2020. General Results

In April through June 2020, the Ukrainian stock market continued its mostly downward movement, against the background of the fight against the COVID-19 pandemic in Ukraine and the world. However, unlike foreign counterparts, its key indicators (in particular UX index) could not recover previous losses in March, so they switched from the world leaders in Q1 2020 to outsiders in Q2. At the same time, the Ukrainian economy did better during this period than developed markets.

The asset management sector in Ukraine maintained an upward trend at this time, growing mainly due to the emergence of new venture funds under AMC management, although capital inflows to open-ended CII continued, too.

Number of market participants

Asset Management Companies (AMC)

In Q2 2020, according to UAIB data, the number of asset management companies did not change – 297. During this period, no AMC was either created or liquidated.

At the end of June, 278 AMCs managed between one and 52 funds, and more than 98% of all such AMCs managed at least one venture CII.

Collective Investment Institutions (CII)

In April-June 2020, 50 new CII were registered. Considering the closed funds, as of June 30, 2020, the total number of registered CII increased by 1971, by 2.3% for the quarter.

The number of CII that reached the minimum assets standard (formed, "established" funds) increased for the eleventh consecutive quarter - to 1397 (+ 2.9% for Q2).

Non-State Pension Funds (NPFs)

The number of NPFs under management as of June 30, 2020 remained equal to 60 (excluding the NBU corporate fund). Among those were including 48 open, 6 corporate and 6 professional funds. A total of 34 AMCs managed NPF assets.

Insurance Companies (IC)

The number of insurance companies that transferred their assets to AMC management did not change in Q2 2020, as did the number of AMCs that provided the following services: as of June 30, 2020, one such AMC managed the assets of two insurance companies.

Assets in management and NAV

All Institutional Investors

Total assets under AMC management grew by 2.8% in Q2 2020 (by 11.3% in the last 12 months) and reached UAH 377,182 million at the end of June.

Collective Investment Institutes (CII)

The total assets of all CII under management, including those that have not yet reached the standard, also grew by 2.8% in Q2 2020, and by 6.2% since the beginning of the year, to UAH 375,201 million. The annual growth in June accelerated to + 11.2%.

As of June 30, 2020, the assets of existing CII, which reached the minimum assets ("established" CII) ratio, amounted to UAH 370,998 million. In Q2 2020, they grew by 4.0%, and in the last year - by 12.7%. Growth was recorded in all sectors of CII by types of funds and of issue, except for closed-end CII with private placement (except for venture funds). But again it was venture funds (+ 4.1% for the quarter, + 13.7% for the year) that provided the basis for growth of industry assets.

The value of net assets of CII ("established") as of June 30, 2020 reached UAH 289,685 million. In Q2 it grew by 5.6%, since the beginning of the year - by 10.9%, and for the last 12 months - by 13.7%.

Non-State Pension Funds (NPFs)

In Q2 2020, NPF assets managed by AMC accelerated growth almost threefold to 9.2% (up to 19.9% over the year). As of June 30, 2020, they reached UAH 1,805 million.

Insurance Companies (IC)

The assets of the IC under AMC management continued to grow at double-digit rates: + 19.9% for Q2 (+ 69.5% for the annual period). At the end of June 2020, they reached UAH 157 million.