#12 December 2012

In focus – Investment funds

The diversity of investment funds worldwide is really apparent: global and domestic, public and private, etc. In many emerging markets these funds became an alternative source of finance while generating M&A activity in the middle market. The so-called investment funds industry abroad offers rather lucrative opportunities both in terms of fundraising and transacting business inside and beyond national boundaries

Expert Opinion

New Regulation of Mutual Investment Funds: Much ado about Nothing, or a Real Step Forward?

Artem V. Shyrkozhukhov, Yuriy P. Zaremba

On 15 August 2012 the President of Ukraine signed the new On Mutual Investment Funds Act of Ukraine (the New Investment Funds Act). The New Investment Funds Act will come into force on 1 January 2014. Within a year after it comes into effect, Ukrainian mutual investment vehicles (Investment Funds) will have to bring their operations into compliance with the New Investment Funds Act. The New Investment Funds Act has been widely welcomed by professionals working in the field as a right step towards development of investment funds in Ukraine...

In Re

Investing in Distressed Financial Assets through Venture Funds: Possibilities and Challenges

Zoya S. Mylovanova

The financial crisis hit Ukraine hard, with most industries shrinking rapidly. What meant recession for banking sector has proven a golden opportunity for collectors and investors in distressed assets. As is often the case with the development of new forms of operations in Ukraine, the legal environment was not ready. Despite the first deals on sale of loan portfolios prior to 2008, mainly related to securitization, and experience on the market in the years passing since then, there is still no consensus among the regulators and practitioners as to how, from the legal point of view, this market is to function...

Collective Investment Funds: What will the Coming Act Reveal?

Yaroslav V. Abramov, Olga V. Vinglovska

Collective investment funds (CIFs) continue to gain popularity among large and medium-sized businesses. As of 1 July 2012 there were 1179 CIFs operating in Ukraine, 92% of which were ventures. Venture capital funds also account for about 127 of the 137 billion in total CIF assets. Practice shows that venture CIFs are often a tool of financial optimization and refinancing and used by business groups or private businesses for their own purposes, but not as instruments of collective investment

Argument

Up-to-date Global Challenges in Shipping Industry and Maritime Law and Ukrainian Response

Nikolay V. Melnykov, Vyacheslav P. Lebedev

At the newest stage of Ukraines formation as a sovereign European state the factor of its formation as a maritime power becomes most significant. This is stipulated by several trends both of a global and local feature. We may emphasize the following among global trends:

1). Formation of new world sea trade routes, in particular, intensification between the economies of the Asian-Pacific Region and developed economies (between China and EU countries), between economies which are actively developing (China Latin America) and between Africa and China

Business Lunch

Developing an Arbitration Association in Ukraine is it a Challenge to Ukrainian Legal Society?

An official announcement was made in mid-November about the establishment of the Ukrainian Arbitration Association. The newly-established entity is designated to unite lawyers who are professionally engaged or interested in the practices of dispute settlement in international arbitration, regardless of a particular jurisdiction. We asked its president Tatyana Slipachuk, Sayenko Kharenko, and a member of its Board of Directors, Noah Rubins, Freshfields Bruckhaus Deringer (France), to discuss the Associations future plans

Global Legal Update

International Legal Responses to Global Climate Changes

Chun Hung Lin

Climate change is a global problem that requires real solutions. It is a change in the statistical distribution of weather over periods of time that range from decades to millions of years. The earth intercepts solar radiation that is short wave and visible parts of the spectrum. About one-third of that radiation is reflected, and the rest is absorbed by different components of the climate system, including the atmosphere, the oceans, the land surface, and biota. The energy absorbed from solar radiation is balanced, in the long term, by outgoing radiation from the earths atmosphere system

Crux

Financing of Ukrainian Business in 2012. Findings

Nataliya Drozdova

According to the National Bank of Ukraines data there is a noticeable upward trend in crediting of Ukrainian businesses in recent years. As of 1 January 2011 banks issued such loans totaling UAH 508,288 million. And as of 1 January 2012 the amount was UAH 580,907 million. On 10 January 2012, the amount was already UAH 602,122 million. However, the increase in lending in the banking system as a whole can hardly be confirmation of the increasing volume in individual banks

Gabriel Aslanian

A UN world economy report issued in late 2011 pointed out the persistent weaknesses in the major developed economies related to problems left unresolved in the aftermath of the Great Recession of 2008-2009. The Ukrainian export-oriented economy still remains exposed to risks emerging globally. Thus, the domestic market has not seen plenty of good fund raising opportunities, in particular, due to high interest rates charged by local banks

Artem Shyrkozhukhov

With Eurobond markets closed and bank lending significantly curtailed, 2012 has not been a particularly impressive year with opportunities for Ukrainian businesses to get debt financing. Only Ukrainian companies which are leaders in their respective sectors and have positive credit histories have been able to get access to syndicated lending this year. For example, Kernel, Milkiland, Metinvest, DTEK and Creative

Yulia Kyrpa

Despite some scattered signs of improvement in recent months, the world economic situation and prospects in international capital markets for 2013 continue to be challenging. After a marked slowdown in 2011 and 2012, global economic growth is likely to remain tepid in 2013. It means the presence of Ukrainian companies in the international capital markets in the forthcoming year will remain below potential

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