Ukrainian fund industry highlights of Q1 2025: Further growth in funds number and the total AuM, significant NAV growth in open-ended funds in spite of the absent capital inflow

Ukrainian fund & asset management industry kept working and generally growing in Q1 2025, despite the continued martial law due to the full-scale russian aggressionagainst and invasion into Ukraine, which lasted for more than 3 years by the end of March. Domestic funds were still being created in bigger numbers than those closing, and the assets under management and total NAVs kept increasing. The number of AMCs contracted slightly in Q1. Also, open-ended funds had almost no net capital flow over the quarter, although monthly figures fluctuated significantly.

AuM of the ‘established [1] Ukrainian Collective Investment Institutions (CIIs) rose by 2.6% (in UAH terms) in Q1 2025, to reachUAH 683.9 billion by end March 2025 (EUR 15.3 billion, up from EUR 15.2 billion at end 2024). The annual growth rate in March 2025 accelerated slightly, to +11.4% (from +10.8% in 2024).

More specifically:

• Venture [2] CIIs
  • In the corporate form (VCIFs), as usual, played a key role in the industry’s growth in terms of the number of funds: +16 such funds out of 21 newly formed CIIs in total over the quarter; plus three venture funds in a contractual/unit form (VUIFs);
  • the share of the VCIFs in the total CII number by end March 2025 stayed above 60%, same as at the beginning of the year (for all venture CIIs, above 93%);
  • AuM of the formed venture CIIs grew by 2.9% in Q1 2025 and by 11.8% annually;
  • NAV added 3.2% over the quarter and 15.4% annually to reach UAH 566.2 billion, with its share in the total Ukrainian CIIs’ NAV approaching 97% by end March 2025.
     
• Among the publicly-offered funds [3],namely the opend-ended, interval, and closed-end CIIs with public offering, the former two sectors had their total NAV increase in Q1 2025, with open-ended funds leading strongly, while the latter sector contracted by almost 23%.

• In open-ended CIIs (16, all publicly offered):

• Total NAV
  • Amounted to UAH 260 million as at end March 2025 having grown by 8.3% in Q1 and 69.9% annually;
  • 100% of the quarterly NAV growth was attributed to the positive revaluation of the funds’ portfolios, while in the growth over the past year at end March 2025, 60% was due to capital inflow.
• Net sales
  • Nearly flat in Q1 2025: -UAH 0.02 million (after -UAH 3.5 million in the previous quarter);  
  • Annual capital flow accelerated by end March 2025 to +UAH 64.5 million, from +UAH 61.8 million over 2024 due to much more negative figure for Q1 last year.
• Investors
  • Domestic retail investors decreased their relative holdings in the open-ended funds from 90.8% of the total NAV at end2024 to 89.9% by end March 2025 – due to the more rapid growth of local legal entities’ holdings in the sector.
    The number of the local individual investors here grew significantly (+7.7%) in the quarter and their share edged up from 98.7% to 98.8% of all investors in the sector;
  • There were also still 5foreign investors (non-residentinstitutional/corporate and individual ones) in open-ended funds in March 2025 having 4.0% in the sector’s total NAV, down from 4.3% at the beginning of the year, as their holdings grew relatively the least in Q1.   

• Number of non-resident investors in all CIIs in total increased from 356 at end 2024 to 360 at end March 2025 – due to their growth in venture funds (+1.3% in Q1). Non-residents held 21.2% of the CIIs total NAV by end March, up from 20.7% at the beginning of 2025.

Number of the formed CIIs increased for the sixth consecutive quarter, to 1853 fundsby the end March 2025 (+13 funds, or +0.7% in Q1).

Number of AMCs in Ukraine contracted from 279 to 275 in Q1 2025.

• Out of those, 248 (90%) remained active and reported on their investment and/or pension funds under management for the quarter, in particualr:
  • Almost 99% of them had at least one venture CII under management;
  • 9 AMCs managed acting 16 open-ended funds, and 29 companies had 76 publicly offered CIIs in total (as at the beginning of 2025);
  • 29AMCs had 48acting pension funds under management (down from 30 and 49 respectively over the quarter), and one AMC still managed assets of one insurance company.

Number of non-state pension fund administrators (ANPFs) remained 15 at end March 2025, with 14 still having funds under administration.

• Among them there were still 5 companies with NPF administrator’s licence only in Q1 – same as before; other ANPFs conducted both institutional investor asset management licenced activity and the one of NPF administration.

Non-state pension funds (NPFs)

• Had UAH 3,467 million of assets under management of AMCs at end March 2025, decelerating to +3.8% quarterly in Q1 and to +19.3% annually (from +20.4% in 2024);
• Had their assets under administration of the ANPFs [4] rising to the same UAH 3,467 million by March 2025, i.e. +3.8% in Q1 and +19.2% annually (down from +20.2% in 2024).

Insurance Companies’ assets under management of AMCs

• Amounted to UAH 271 million as at end March 2025 and decelerated their quarterly growth rate from +6.3% to +5.3% in Q1, and to +26.5% annually (from +28.3% in 2024).

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See Part 1 of the full UAIB Q1 2025 report is available on the UAIB website (in Ukrainian):

See more market statistics on the UAIB website: The Ukrainian Fund Market in Figures

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 48 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.