Practical aspects of the domestic institutional investors portfolios creation

Abstract

In Ukraine, the activities of institutional investors, in particular investment and non-state pension funds, regarding investment portfolios construction, primarily diversified ones, have certain specifics. The latter is due to the lack of a sufficient number of investment-level financial instruments. Research into the problem of the availability of financial instruments that meet the requirements for diversified investment portfolios will allow us to propose a set of measures, the implementation of which will contribute to the further development of portfolio investment in Ukraine.

The purpose of the article and its task is to analyse the structure of portfolios of various groups of portfolio investors in Ukraine - investment and non-state pension funds, determine the main factors that influence the formation of their investment portfolios, and substantiate the directions of optimizing portfolio investments in current conditions.

General scientific and special methods were used: analysis, synthesis, description, comparison, theoretical generalization and abstract-logical

The paper conducted a retrospective study of the dynamics of changes in the asset structure of various types of institutional investors during period of time from 2005 to 2023. For this, the dynamics of the creation of various types of investment funds was analyzed - corporate and mutual, diversified and non-diversified, open-end, interval and closed-end. A comparative analysis of the asset structure of domestic funds and their European counterparts in the form of UCITS and alternative investment funds was conducted. In particular, differences in the investment policy of domestic non-venture funds and UCITS funds were identified, due to regulatory requirements for the structure of assets. It was established that an obstacle to optimizing the asset structure of domestic finds is, among other things, the insufficient number of financial instruments that meet the requirements for diversification of investment portfolios, which is due to the peculiarities of legislative regulation. One of the main problems for institutional investors in Ukraine is the insufficient number of financial instruments that meet the established requirements, especially corporate securities (equities and bonds).

This problem can be solved by amending the legislation, which provides for changes in the requirements for the listing of securities and corporate governance in terms of protecting the rights of minority investors, which include portfolio investors.