Ukrainian asset management industry preliminary highlights of 2019

According to the preliminary UAIB data, asset management companies (AMCs) in Ukraine had UAH 355.1 billion of AuM in total (including UAH 353.3 billion assets of investment funds, CII) at end 2019, or cca EUR 13.4 billion. This represents a 12.8% growthfor theyear in UAH terms and a 35.7% growth in EUR terms as the national currency had continued its revaluation during 2019 (compared to the UAH 18.7% growth rate and to 25.4% rate in EUR terms in 2018).

This strong growth was supported by the increasing number of CIIunder management which had grown from 1237 to 1338 funds over the course of 2019 (+8.2%, as in 2018). Meanwhile, the number of AMCs had been fluctuating during the year and eventually decreased from 296 to 293 at end December 2019.

Assets of 58Non-state Pension Funds (NPFs)under management of 34 AMCs in Ukraine grew to UAH 1,653 M by end 2019, i.e. at an accelerated pace of 16.9% for the year (after +15.6% in 2018) – excluding the National Bank’s corporate pension fund which is managed by the NBU itself and has roughly 50% of the total NPFs’ AuM.

Insurance companies’ AuM fluctuated considerably throughout the year, but demonstrated growth over 2019 at a high pace of 20.7% (after falling sharply by 35.4% in 2018). High volatility of these assets was due to the low number of such companies having respective arrangements with AMCs (two ICs throughout the year) and the subsequently small base: by end 2019 they stood at UAH 96.4 M.

The number of AMCs dealing with acting open-ended funds remained unchanged at 10 as well as did the number of such funds(17).

Open-ended funds’ NAV has seen first contraction in four years in the environment of the falling domestic stock markets (10-11%) and the returned negative net sales (first in three years). The total NAV declined to UAH 82.5 M, i.e. by 6.5%in 2019(after adding 17.8% in 2018).

The annual outflow of capital from this CII sector amounted to UAH 5.8 M in 2019 (compared to the inflow of UAH 3 M in 2018). On a quarterly basis, some positive net sales during 2019 were registered only in Q3. At the same time, two thirds of the total annual net outflow from the sector were due to the negative net sales in just one fund, while two funds with the biggest outflows accounted for 90% of the sector’s annual result. Also, in Q4 2019, two other open-ended funds had positive net sales, while based on the annual results, there were three such funds out of 17 in 2019.

See more figures at the UAIB website:

https://www.uaib.com.ua/en/analituaib

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