UAIB Analytical Review of the Asset Management Market in Ukraine in Q3 2020. General Results

The Ukrainian stock market in July-September 2020 mostly followed a sideways trend, but after a steep fall at the beginning of the quarter, amid aggravation of the domestic political situation and continued covid-19 crisis, the indices of Ukrainian blue chips again showed moderately negative results against their foreign counterparts. At the same time, the Ukrainian economy Q3 began to grow and reduce annual losses, which at the end of September were on a par with developed markets.

The asset management sector of institutional investors in Ukraine, against the background of some economic recovery in the context of easing restrictive measures to combat the covid-19 crisis during this period, accelerated growth: accelerated the creation of new CII and fund assets in management, increased AMC, significantly increased capital inflows to open CII.

Number of market participants

Asset Management Company (AMC)

In Q3, according to UAIB, the number of asset management companies increased to 300. During this period, 5 companies were established and two withdrew from the market.

At the end of June, 281 AMCs managed from one to 54 funds, and 98.6% of all such AMCs managed at least one venture CII.

Collective Investment Institutes (CII)

In July-September, 66 new CII (mostly venture) were registered. Considering the closed funds, as of 30.09.2020 the total number of registered CII increased by 2023, by 2.6% for Q3.

The number of CII that reached the minimum assets ratio (formed, "established" funds) grew in the 12th consecutive quarter and reached 1443 (+ 3.3% in Q3 2020).

Non-State Pension Funds (NPFs)

As of September 30, 2020, there were 60 NPFs under management (excluding the NBU corporate fund), including 48 open-end, 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 Q3, as well as the number of AMCs that provided the following services: as of September 30, 2020, one such company managed the assets of two insurance companies.

Assets in management and NAV

All Institutional Investors

In July-September 2020, total total assets under AMC management accelerated quarterly growth to 6.1%, annual growth to 14.3%, and at the end of September crossed UAH 400 billion (UAH 400.177 million) for the first time.

Collective Investment Institutes (CII)

The total assets of all CII under management, including those that have not yet reached the standard, also grew by 6.1% in Q3 2020, and by 12.7% in September - to UAH 398.116 million.

Assets of current CII, which reached the minimum asset ratio ("established" CII), accelerated to 6.3% in Q3, and year on year to 16.0% in September. As of September 30, 2020, they reached UAH 394.410 million. Growth was recorded in open-ended, interval and venture funds.

The value of net assets of CII ("established") as of 30.09.2020 reached UAH 309.633 million. In Q3, its growth accelerated to 6.9%, and in September - to 17.2%.

Non-State Pension Funds (NPFs)

In July-September 2020, NPF assets managed by AMC slowed down quarterly growth to 5.9%, although they accelerated to 23.4% year on year. As of the end of September, they amounted to UAH 1.913 million.

Insurance Companies (IC)

The assets of the IC under the management of AMC also significantly slowed down growth in Q3 2020 - to 3.0%, and for the last year - to 66%. As of 30.09.2020, the volume of insurers' assets under management amounted to UAH 162 million.