of insurance reserves created by the insurance companies should be placed taking into
account safety, profitability, liquidity, diversification and must be represented by the
assets of the following categories: cash on current account; bank deposits (deposits);
foreign currency investments in accordance with the currency of insurance; real estate;
shares, bonds, mortgage certificates; securities issued by the state; rights claims to
reinsurers; investments in the state economy in the directions determined by the
government; banking metals [24]. Pension assets accumulating in NPF, which include
assets in cash; securities assets; other assets may be used, in addition to meeting the
obligations of the fund to its participants and payment of expenses related to the
implementation of the non-state pension provision for the purpose of investment
activity of the fund in order to generate income in favour of its participants [25].
Analytical aspects of the functioning of joint investment institutions and non-
state pension funds in Ukraine. Among the institutional investors the largest share is
occupied by JII, which create an effective mechanism for the development of the stock
market, play a significant role in cross-sectoral redistribution of the capital, add
stability to the stock market, stimulate both the domestic investment process and
external investment, and contribute to the expansion of the state's ability to internal
borrowing. It should be noted that among institutional investors it is the JII that has the
largest share (from 88.24% to 92.06%) in terms of investment resources. The JII
representation in the domestic financial market is characterized by annual growth
(except for 2014-2016 only), which for the whole period was marked by the additional
creation of 300 funds (Table 1).
Table 1 Representation of JII in the financial market of Ukraine*
Year
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2018**
Number
of JII
577 887 983 1093 1123 1220 1248 1186 1147 1131 1160
1239
* data is shown on 01.01. every year; ** data shown on September 25, 2018
Source: compiled by authors according to data [26]
By the size of the growth of net assets of the JII in 2009-2017 (Fig. 1), the market
of joint investment showed a not quite stable dynamics of development, which is
nevertheless marked by an increase in the aggregate value of their net assets from 72.6
billion UAH to 213.4 billion UAH, which is due to an increase in the number of JII
(from 983 to 1160) and an increase in the value of their investment portfolios.
The dynamics of the net asset value in terms of different types of funds (Table 2)
shows that in 2009-2017 only the value of net assets of venture funds increased year
by year (except 2016 only).
This growth amounted to 117289.5 million UAH, that is
121.6%.
2017 is marked by an increase in the net asset value for all the types of JII:
-
in open-end JII growth was 29.6%;
-
in interval JII - 20.6%; in closed (except venture) JII - 7.4%;
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