Kyiv, March 26 (Interfax-Ukraine) – Kyiv-based SEB Asset Management Ukraine, which is part of the SEB Group, plans to double assets under its management in 2008 from last year's UAH 50 million, Director General of SEB Asset Management Ukraine Vadym Mosiychuk said at a press conference at Interfax-Ukraine on Wednesday.

"We think we'll at least double the sum of assets under our management," he said.

In his words, currently SEB Asset Management Ukraine manages three investment funds – open shared funds SEB Balanced Fund (UAH 14 million) and SEB Money Market Fund (UAH 4 million), and closed corporate fund SEB Equity Fund (UAH 32 million), and does not plan to create new funds.

SEB Asset Management Ukraine accounts for about 3% of the market of public funds in Ukraine: since the start of the current year, additional injections into the company's funds have amounted to about UAH 5 million. Mosiychuk said.

According to the company, the largest investments of SEB Money Market Fund were made in state bonds (14.9%), Kyiv's municipal bonds (6.2%), the securities of Kernel Trade (5.4%), those of Druzhba Nova (5.4%), and Galnaftogaz (5.2%). The largest investments of SEB Balanced Fund were made in the securities of Kernel Trade (5%), Kyiv's municipal bonds (4.6%), the securities of Galnaftogaz (4.2%) and those of Sun Interbrew (4%). The largest investments of SEB Equity Fund were made in the securities of Yenakiyeve steel plant (8.9%), those of Tsentrenergo (8.6%), Motor-Sich (7.5%), Azovstal (5.8%), and Ukrsotsbank (5.4%).

"The largest potential yield in the coming 12 months will be shown by [SEB] Equity Fund. We project an expected yield at at least 35-40%," he said.

In his words, the forecast of an expected yield of SEB Balanced Fund for the coming 12 months is between 20% and 25%, and that of SEB Money Market Fund is from 12% to 15% annual interest.

Mosiychuk stressed that Ukrainian investors are ready to undertake enhanced risks for the sake of a higher yield. On average, they invest assets in investment funds for a term of between 12 and 18 months.

Speaking about the company's plans for the current year, Mosiychuk also said that the company is currently considering the possibility of concluding agreements on the management of insurance companies' reserves, as well as invigorating cooperation with intermediaries on the financial market.

In addition, he pointed out to tougher competition on the market: in 2007 the number of asset management companies managing open funds in Ukraine grew by more than twice to 12 companies, while the number of open funds by the beginning of 2008 soared to 18 (there are 28 funds today).

The ratio of investment funds' aggregate assets to the overall sum of individuals' deposits in 2007 rose from 0.5% to 1.3% (that of open funds from 0.05% to 0.29%). In 2008 it is expected to grow to 2.2%.

Mosiychuk also projects the rapid development of joint investment institutes in Ukraine in 2010-2012: nowadays their development is constrained by high rates on bank deposits and the slow development of non-state pension insurance.

Speaking about prospects for the Ukrainian stock market, he said that the adjustment seen on the market over past months does not exceed that on the international market. He also stressed that a temporary lack of growth on the stock market leads to the accumulation of corresponding potential, which may be realized in the latter half of the year when the impact of the international credit crisis weakens.

Speaking about the benefits of investment in sectorial companies, he said among the most attractive sectors for investment in securities are the mining industry, machine-building and the energy sector, which remains underestimated. He also mentioned interest in investment in the sectors oriented towards the domestic consumer market, however, he said, the supply of high-quality securities there is limited.

"If the privatization of some regional power distribution companies, or simply energy companies turns to be a success this year, this will give another incentive to the development of the stock market.

Yet, Ott Jalakas, the head of the SEB Asset Management Ukraine's investment department, believes that the record pace of the Ukrainian stock market's growth is behind. "In future we are unlikely to see such growth [of the stock market] we saw in Ukraine in 2007," he said.

SEB Asset Management Ukraine was registered in October 2005. All its stocks belong to OJSC SEB Bank (formerly Aggio), which is owned by AB Skandinaviska Enskilda Banken, belonging to the SEB Group. The statutory capital of SEB Asset Management Ukraine is UAH 5.5 million.