Ukrainian fund & asset management industry highlights of Q3 2024: Further increase in the number of funds, continued expansion of the total AuM and inflow into open-ended funds

Further increase in the number of funds, continued expansion of the total AuM and inflow into open-ended funds

Under the martial law due to the full-scale russian aggression against and invasion into Ukraine, which lasted for more than 10 quarters by end of September 2024, and despite the effective closure, for the duration of the Q3, of the main Ukrainian stock exchange in equity trading based on the sanctions' law, domestic fund & asset management industry remained resilient and kept growing both in terms of the creation of new funds (and the total number of funds), and the assets under management. Also notably, in Q3 2024, open-ended funds continued to attract new capital for the second consecutive quarter.

AuM of the ‘established’ [1] Ukrainian Collective Investment Institutions (CIIs) rose by 6.8% (in UAH terms) in Q3 2024, to reach UAH 661.4 billion by end September 2024 (EUR 14.4 billion, up from EUR 14.3 billion in June). The annual growth rate in September 2024 accelerated to +10.5%.

More specifically:

• ‘Venture’ [2] CIIs
  • In the corporate form (VCIFs)still played the main role in the industry’s growth in terms of the number of funds: +15 such funds out of 17 new CIIs in total over the quarter; the share of the VCIFs in the total CII number remained close to 59% (for all venture CIIs, close to 94%);
  • AuM of the formed venture CIIs grew by 7.1% in Q3 2024 and by 10.6% annually in September 2024;
  • NAV added 7.0% over the quarter and 14.8% annually to reach UAH 538.2 billion, with its share in the total Ukrainian CIIs’ NAVremaining above 96%.
• Among the publicly-offered funds [3], namely the open-ended, interval, and closed-end CIIs with public offering, the first two sectors had their total NAV increase in Q3 2024 while the latter experienced a decline; annually, all the three sectors grew their NAV, with open-ended funds leading strongly in relative terms.

Number of the formed CIIs increased for the fourth consecutive quarter, to 1803 funds by the end September 2024 (+8 funds, or 0.4% in Q3). During the quarter, 22 new funds were fully formed.

• In open-ended CIIs (all publicly offered):

• Total NAV
  • Amounted to UAH 235 million as at end September 2024;
  • Grew by 7.8% in Q3 2024 and 54.6% annually in September;
  • The NAV gowth was thanks to both capital inflow and positive revaluation of the funds’ portfolios.
• Net sales
  • Stayed positive in Q3 2024 for the second quarter in a row: +UAH 10.3 million (after +UAH 57.6 million in the previous quarter);  
  • Annual capital flow accelerated by end September 2024 to +UAH 61.0 million, from +UAH 51.3 million in March.
• Investors
  • Domestic retail investors increased their relative holdings in the open-ended funds to 91.0% of the total NAV by end September 2024, up from 89.7% in June. They comprised 98.7% of all investors in the sector;
  • There were also still 5 foreign investors (non-resident institutional/corporate and individual ones) in open-ended funds at end September 2024 having 4.2% in the sector’s total NAV, down from 4.5% in June – due to the continued massive net sales to domestic retail investors in Q3;

• Number of non-resident investors in all CIIs in total increased from 370 in June to 378 in September 2024 – thanks to their buying of closed-end CIIs, including venture funds. Non-residents held 21.4% of the CIIs total NAV by the end of Q3, down from 21.6% in Q2.

Number of AMCs in Ukraine edged down from 279 in June to 278 in September 2024.

• Out of those, 247 (89%, same as in Q2) remained active and reported on their investment and/or pension funds under management for the quarter, in particualr:
  • Over 98% of them had at least one venture CII under management;
  • 9 AMCs still managed acting 16 open-ended funds, and 29 companies had 76 publicly offered CIIs in total (up from 28 and 73 in June respectively);
  • Furthermore, 30 AMCs had 52 pension funds under management, and one managed assets of one insurance company, as before.

Number of non-state pension fund administrators (ANPFs) declined from 16in June to 15 in September 2024.

• Among them there were still 5 companies which had only NPF administrator’s licence, while others conducted both institutional investor asset management licenced activity and the one of pension fund administration.

Non-state pension funds (NPFs)

• Had UAH 3,187 million of asset sunder management of AMCs by end September 2024, decerelating to +4.0% quarterly in Q3 and to +20.4% annually;
• While NPFs assets under administration of the ANPFs [4]rose to UAH 3,188 million by end September 2024 – also +4.0% in Q3 2024, and +19.3% annually (down from +20.1% a quarter ago).

Insurance Companies’ assets under management of AMCs

• Decelerated to +4.5% quarterly in Q3 2024, and to +33.2% annually in September (from +37.4% in June). They amounted to UAH 242 million as at end September 2024.

First part of the full UAIB Q3 2024 report is available on the UAIB website (in Ukrainian) at the link:

https://www.uaib.com.ua/analituaib/publ-ici-quart/uaib-oglyad-diyalnosti-za-3-y-kvartal-2024-roku-zagalni-rezultati

See more market statistics on the UAIB website:

The Ukrainian Fund Market in Figures(Q3 2024 data to be uploaded soon)          

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

[1]Formed funds which have reached compliance with the minimal asset value regulatory requirement.

[2]Venture CIIs are closed-end ‘non-diversified’ funds with private placement only, mainly investing in private equity and debt, with the lowest restrictions on their activity as compared to other fund categories.

[3]See fund classification on the UAIB website: https://www.uaib.com.ua/en/invest-in-ukraine/cii-manual

[4]These were 52 III-pillar funds, excluding the NBU’s corporate pension fund. The National Bank’s of Ukraine corporate NPF, which is managed by the NBU itself, had around 42% of the total NPFs’ AuM.