UAIB Review of the Institutional Investor Asset Management & Pension Fund Administration Industries in Ukraine in Q2 2021. General Results

01 September 2021

In April-June 2021, the Ukrainian stock market had a rather volatile, albeit mostly upward, dynamics, supporting the returns of funds investing in capital market instruments. The growth of the indices slowed down somewhat compared to Q1, but both major Ukrainian stock market indicators rose again, and one of them is almost at the average rate for emerging markets.

The industries of institutional investor asset management and pension fund administration generally also maintained a positive trend in Q2 2021, although in some sectors the assets of the funds decreased. The open-ended CII sector declined during this period due to capital outflows, although the value of the portfolios of these funds generally continued to rise. Venture CIIs continued to grow, including due to the steady increase in the number of the funds of corporate type. NPFs also maintained a positive, albeit somewhat slower, dynamics.

Number of market participants

Asset Management Companies (AMCs)

In Q2 2021, the total number of asset management companies increased by one to 307. During April-June, 9 new AMCs were established and 8 ceased operations. Of all AMCs, 287 managed between one and 66 funds, and more than 98% of such companies managed at least one venture CII.

Administrators of non-state pension funds (ANPFs)

The number of ANPFs in Q2 2021 did not change: 19. Among them, as before, there were 6 companies that carried out exclusively the activities of NPF administration, the rest - combined it with asset management activity.

Collective investment institutions (CIIs)

In Q2 2021, 66 new CIIs were registered, and 60 funds reached the standards. The total number of CIIs that reached the minimum assets (established) ratio grew for the 15th consecutive quarter and amounted to 1,560 (+ 2.4% for the quarter) at the end of June.

Non-state pension funds (NPFs)

The number of NPFs under management as of June 30, 2021 was 54 (excluding the corporate fund of the NBU), including 45 open, 3 corporate and 6 professional. A total of 32 AMCs managed NPF assets.

Insurance companies (ICs)

The number of insurance companies that transferred their assets into AMC management and the number of AMCs that provided such services did not change in Q2 2021: as of June 30, 2021, one such AMC continued to manage the assets of two insurance companies.

Assets in management and NAV

All institutional investors

Total assets under AMC management accelerated growth in Q2 6.2% and as of June 30, 2021 reached UAH 477,350 million. From the beginning of the year these assets grew by 12.4%, and for the last 12 months at the end of June - by 26.6%.

Collective investment institutions (CIIs)

The total assets of all CIIs under management, including those that have not yet reached the standard, also grew by 6.2% in the second quarter and by 26.6% in the last year. As of June 30, 2021, they amounted to UAH 475,122 million.

At the end of June 2021, the assets of operational CII, which reached the minimum assets (established) ratio, reached UAH 467,861 million. In Q2, they grew by 6.0%, since the beginning of 2021 - by 13.0%, and in the last 12 months - by 26.1%.

The value of net assets of all formed CIIs as of the end of June 2021 reached UAH 355,173 million. In Q2, it slowed down: + 4.5% for the quarter and + 22.6% for the last year, and added 10.3% for the first half of 2021.

The total net movement of capital in open-ended CII in Q2 2021 for the first time since Q4 2019 was negative: -9.6 million UAH. However, in the first half of the year it remained positive and significant - as well as the annual net inflow into the sector, which at the end of June amounted to UAH 63.8 million.

Non-state pension funds (NPFs)

In April-June 2021, NPF assets managed by AMCs slowed down quarterly growth to 2.8% and annual growth to 13.7%. In the first half of 2021, they added 6.7% and as of June 30, 2021 reached UAH 2,052 million. NPFs had UAH 2,060 million in assets administered by UAIB members.

Insurance companies (ICs)

In Q2 2021, the assets of the IC under management of AMCs returned to growth: + 4.8%. From the beginning of the year they added 3.3%, and for the last 12 months - 12.1% and as of the end of June they amounted to UAH 176 million.

Key Figures
Total number of members313as at 25.10.21
Number of AMC307as at 25.10.21
Number of NPF administrators19as at 25.10.21
Number of CII1647as at 25.10.21
Number of NPF*56as at 25.10.21
IC Number*2as at 31.08.21
AuM, UAH M491 778as at 31.08.21
NPF assets under administration, UAH M2 105as at 31.08.21