Monthly Performance Review of Publicly Offered CII in Ukraine. November 2012
09 January 2013
As no fundamental changes in the political life of the United States took place and Barak Obama was reelected for a second term, quick growth of stock indexes was expected to take place. However, weather made its adjustments – a powerful hurricane that stroke New York not only brought flood and destructions, but also resulted in lowering of the US stock indexes. In the meantime, European and Asian trading floors (with exception of China) traditionally demonstrated an opposite picture, with a significant growth demonstrated at nearly all exchanges.
Elections to the Verkhovna Rada of Ukraine, on the one hand, did not bring fundamental changes in the political course of the country, on the other – new parties joined the VRU and, though in November Ukrainian Exchange index dropped by 2,46%, a growth tendency began to show in the market.
The equities of “Dniprooblenergo” (+53,61%), “Illicha Mariupil Metallurgical Complex”(+32,53%) and “Alchevsky Cocksohim” (+31,13%) became growth leaders in the bid market.
PFTS index also registered negative value and lost 2,97% during November.
According to the UAIB, the NAV of 40 open-ended CII as of 30.11.2012 reached UAH 162,45M. Based on their indicators as of the previous month end, an aggregate net asset decrease comprisedUAH 8,17M (-4,79%). In November, an outflow of moneys notably declined (in October this indicator was equal to -9,10%).
Positive changes observed during the second half of the month allowed 20 funds to enter into positive zone, and the rest of the funds registered decrease in the rates of return. In November rates of return of investment funds fluctuated between +4,94% and -30,38%, with an average sector rate of return reaching -1,68%.
For the second month in a row, funds of risk instruments were first among open-ended funds by the volumes of moneys attracted form investors.
Based on November results, growth leaders in the sector of open-ended CII were:
- “OTP Equity Fund” (+UAH 618,35 thsd. (+13,01%)) – due to an additional placement of 1,07M certificates (increase in circulation by 12,98%) generated a net inflow in amount UAH 615,00 thsd.;
- “SEB Equity Fund Ukraine” (+UAH 123,25 thsd. (+6,72%) – also attracted UAH 139,25 thsd. solely by way of increasing the number of certificates in circulation by 4810 (+7,68%);
- "UNIVER.UA/Mykhailo Hrushevsky: Government Securities Fund" (+UAH 87,39 thsd. (+6,23%)) – via an additional placement of 67 IC generated UAH 77,12 thsd. worth of net inflow.
The greatest payments to investors in November were made by the following funds:
- “OTP Classic” (-UAH 1 879,42 thsd. (-4,04%) – the greatest net outflow in amount UAH 2392,43 thsd. In connection with a buyout of 1677 certificates (-5,11% in circulation);
- “Altus Balanced” (-UAH 517,57 thsd. (-21,82%) – net outflow reached UAH 547,29 thsd. also due to a buyout of 286 investment certificates (-22,97%);
- "Raiffeisen Money Market" (-UAH 241,96 thsd. (-2,25%) – net outflow reached UAH 380,96 thsd. (as investors presented for buyout 244 ІС (-3,53%).
In November the list of the key sector players by market share changed. The first place by market share among open-ended CII went to “OTP Classic” fund (27,45% of the aggregate NAV (UAH 44,6M)), and the second place – to “KINTO Classic” fund (14,88% (UAH 24,18M)). “Raiffeisen Money Market” became third (6,19% (UAH 10,05M)), and “Sparta Balanced” – fourth (5,71% (UAH 9,28M), having shifted "Citadele Ukrainian Balanced Fund" down (4,19% (UAH 6,81M)) to the fifth place.
Among the leaders by the rates of return should be noted such funds as: “SEM Azhio” (+4,94%), “Andromeda” (+3,67%), and “TASK Resurs” (+1,53%).
The most poor performance results in November were demonstrated by funds “Patron” (-16,02%), "Citadele Ukrainian Bond Fund" (-19,56%), and "Citadele Ukrainian Balanced Fund" (-30,38%).
November review covers 10 interval CII, the net assets of which, according to the UAIB data, comprised UAH 39,89M. Based on the indicators of this sector as of the preceding month end, the pace of aggregate NAV decrease slowed down and as of 30.11.2012 the decrease reached –UAH 768,38 thsd. (-2,17%).
Unlike in October, no material inflow of capital was registered. Even through the volumes of payments to investors decreased, asset revaluation consumed the proceeds.
In November, growth leaders in the sector of interval CII were:
- “Absolute-Invest” (+UAH 186,83 thsd. (+1,56%)) – despite payment on 1557 securities, asset revaluation resulted in an almost zero net outflow;
- “Orion” (+UAH 35,89 thsd. (+1,70%)) – generated no net inflow due to a negative asset revaluation;
- “Optimum” (+UAH 34,10 thsd. (+5,38%)) also generated no net inflow due to a negative asset revaluation.
The greatest losses of net assets in November were experienced by the following funds:
- “Platinum” (-UAH 352,66 thsd. (-3,13%), which due to an additional sale to investors of 50 securities (+0,11% in circulation) and portfolio revaluation generated net inflow in amount UAH 12,57 thsd.;
- “Concorde Perspectiva” (-UAH 248,93 thsd. (-7,23%)) – the greatest net outflow in amount UAH 247,70 thsd. Resulted from a buyout from investors of 4167 securities (-7,19% in circulation);
- “Aurum” (-UAH 200,32 thsd. (-8,66%)) also incurred UAH 203,84 thsd. worth of net outflow owing to a buyout of 5524 securities of the fund (-8,97% in circulation).
The range of interval funds’ rates of return in November fluctuated between +5,38% and -16,98%. Sector average rate of return was negative and comprised -1,10% (+1,66% in the preceding month).
Only three funds registered negative results in November, whilst the rest of the funds confidently used the growth of quotations in the second half of the month, with most substantial growth registered in funds “Optimum” (+5,38%), “Orion” (+1,70%), and “Absolute-Invest” (+1,57%).
November review covered 12 closed-end CII, the net asset value of which as of month end reached UAH 33,6M. According to the information provided, an aggregate NAV of these funds increased by UAH 2,53M (+8,14%). Already for the fourth month in a row the sector of closed-end funds demonstrated the best result by NAV growth. Furthermore, closed-end funds in November led by attraction of investors’ moneys.
Sector growth leaders were:
- "Raiffaisen Foreign Currency" (+UAH 1 674,69 thsd. (+13,61%)) – due to an additional placement of 1787 securities (+12,07% in circulation) received UAH 1 503,26 thsd. of net inflow;
- “Pershyi Zolotyi” (+UAH 837,43 thsd. (+16,5%)) – also owing to placement of 2915 securities (+16,37%) received UAH 833,8 thsd. worth of net inflow.
- The rest of the funds broke even as a result of asset revaluation, without either losses or net capital inflow.
The range of closed-end funds’ rates of return in November fluctuated between +3,3% and -2,61%. Anaverage rate of return of the closed-end funds’ sector according to the monthly result turned out to be the best one and stopped in the green zone having reached +0,13%.
In November, prevailing majority of funds succeeded in demonstrating positive growth dynamics, and only five funds registered negative results. The best results by the rates of return generated were demonstrated by funds “Centavr” (+3,3%), "UNIVER.UA/SKIF-Real Estate Fund" (+2,92%) and “Raiffeisen Foreign Currency” (+1,37%). Funds “KINTO Summer” (-2,61%), “Ukrainian Exchange Index” (-2,48%) and “KINTO Winter” (-1,83%) were the ones most affected by the downtrend of investments’ value change.