Monthly Performance Review of Publicly Offered CII in Ukraine. February 2013

A rapid rally, which in the New Year had been observed in all global markets, in February somewhat abated, and some stock indexes ended the month with negative value. And, contrary to the traditional situation, when the US would go to the red zone, whilst Europe would add in value, stock exchanges ended February with mixed indicators. For instance, exchanges in the South America grew by 1,25% on average, and in the EU states it is only London stock exchange that managed to remain in positive, just as in the Pacific and Asian sector only Japan demonstrated significant growth. Russian players preferred to take profits, and, according to monthly result, indexes demonstrated a notable drawdown.

In the Ukrainian stock trading floors players were taking profits in the first half of February, but already starting from the second decade “bulls” took over the initiative and managed to turn indexes around. It is already for the second month in a row that the national stock exchange indicators confidently grow, and, according to February results, PFTS index demonstrated a growth of +8,09%, and Ukrainian Exchange index – +5,91%.

OPEN-ENDED FUNDS

Based on the UAIB data, the NAV of 41 open-ended CII as of 28.02.2013 comprised  UAH 159,92 mln. Proceeding from the indicators as of the previous month end, an aggregate net asset decrease reached –UAH 300,98 thsd. (-0,19%). In February, an outflow of moneys notably increased (in January this indicator was equal to -0,03%), which could be explained by investors’ wish to get profits after January NAV growth.
Nearly all funds in the sector took advantage of positive market situation and closed the month with a significant asset growth, although nine funds did not manage to exit from the red zone. The range of investment funds’ rates of return in February was fairly broad and fluctuated between +22,78% and -14,12%, and an average sector rate of return exceeded the last month indicators four times and comprised +2,01%, which proved to be the best result in the sector during the year.

Based on February  results, growth leaders in the sector of open-ended CII were:
 “Raiffeisen Money Market” (+UAH 1778,33 thsd. (+14,75%))  – due to an additional placement of 99 certificates (increase in circulation by 13,48%) generated a net inflow in amount UAH 1642,42 thsd.;
“Argentum” (+UAH 168,79 thsd. (+8,27%) – also attracted UAH 66,64 thsd. solely by way of increasing the number of certificates in circulation by 3,21% (investors purchased 1 702 ІС);
“Altus-Deposit” (+UAH 62,04 thsd. (+3,41%)) – owing to an additional placement of 30 certificates generated UAH 41,71 thsd. worth of net inflow.

The greatest payments to investors in February  were made by the following funds:
"Citadele Ukrainian Bond Fund" (-UAH 1173,89 thsd. (-22,92%) – the greatest net outflow in amount UAH 805,11 thsd. in connection with redemption of 77 277 certificates (-17,09% in circulation);
“SEB Bond Fund” (-UAH 627,83 thsd. (-12,08%) – net outflow reached UAH 680,28 thsd. also in connection with redemption of 344 investment certificates (-13,0%);
“VSE” (-UAH 414,89 thsd. (-9,87%) – as a result of presentation for redemption of 612 investment certificates generated a net outflow in amount UAH 500,80 thsd.

In February, the list of the key sector players remained unchanged. The first place by market share among open-ended CII went to “OTP Classic” fund  (27,8% of aggregate NAV (UAH 44,46 mln.)), and the second one – to “KINTO-Classic” fund (14,43% (UAH 23,07 mln.)). “Raiffeisen Money Market” became third (8,65% (UAH 13,84 mln)), and “Sparta Balanced” fund - fourth (5,70% (UAH 9,12 mln.). “OTP Equity Fund” took pride of the fifth place (3,45% (UAH 5,52 mln)).

Among the leaders by the rates of return should be metioned funds “SEM Azhio” (+22,78%), “Sofiyivsky” (+8,14%), and “Raiffeisen Equity”» (+6,52%).

The poorest performance results in February were demonstrated by funds “Millenium Balanced”(- 14,12%), "Citadele Ukrainian Balanced Fund"  (-7,31%), and  "Citadele Ukrainian Bond Fund" (-7,03%).
 

INTERVAL FUNDS

February review covers 9 interval CII, whose net assets, according to the UAIB data, reached UAH 36,23 mln. Compared to this sector’s indicators as of preceding month end, its aggregate NAV decreased by UAH 212,46 thsd. (-0,58%).
During this month, an outflow of capital from the sector continued and was connected with significant payments to investors.

In February, growth leaders in the sector of interval CII were:
“Platinum” fund (+UAH 496,78 thsd. (+4,1%)) – owing to asset revaluation generated UAH 4,63 thsd. worth of net inflow, as the volumes of funds attracted from investors were not material (+0,04% in circulation).
Other funds generated no net asset inflow, and NAV grew due to asset revaluation only.

The greatest losses of net assets in February  were experienced by the following funds:
“OTP Balanced” (-UAH 305,82 thsd. (-17,36%) – the greatest net outflow in amount UAH 332,24 thsd. in connection with redemption of 358 securities (-18,72% in circulation);
“Aurum” (-UAH 81,77 thsd. (-3,57%)) – also due to redemption of 4 250 securities from investors (-7,48%) generated net outflow in amount UAH 173,81 thsd.;
“Concorde Perspectiva” (-UAH 91,91 thsd. (-2,98%)) – net outflow reached UAH 89,26 thsd. owing to redemption of 1510 securities (-2,81%).

The range of interval funds’ rates of return in February was also rather broad and fluctuated between 22,76% and -5,2%. Interval funds’ sector average rate of return was in the green zone for the second month in a row and reached +6,28%, which was the best indicator among all CII market segments .
Only two funds registered negative performance results in February, whilst the rest of the funds confidently used growth of quotations, with the highest rates of return registered in funds “UNIVER.UA/ Otaman: Fund of Perspective Equities”(+22,76%), “Optimum” (+19,39%), and “Balanced Fund “Parity” (+5,23%).

CLOSED-END FUNDS

February review covers 10 closed-end CII whose net asset value as of month end comprised UAH 33,39  mln. Based on the indicators provided, an aggregate NAV of these funds decreased by UAH 141,04 thsd. (-0,42%). Over last half a year, the closed-end funds’ sector for the first time demonstrated negative dynamics of NAV growth.

Sector growth leaders were:
“Ukrainian Exchange Index” (+UAH 159,82 thsd.(+6,42%)), “AntiBank” (+UAH 127,67 thsd. (+4,05%)) and “Centavr” (+UAH 34,76 thsd. (+1,89%)) – positive NAV change occurred solely owing to asset revaluation, with no net inflow generated by all funds.

The greatest losses of net assets in February were experienced by the following funds:
"Raiffaisen Foreign Currency" fund (-UAH 130,97 thsd. (-0,91%)) – net capital outflow reached UAH 151,27 thsd. due to presentation for redemption of 178 equities (-1,05% in circulation);
“Pershyi Zolotyi” (-UAH 432,66 thsd. (-5,43%) – also in connection with a presentation for redemption of  122 (-0,42%) equities generated UAH 35,19 thsd. net outflow.

The range of closed-end funds’ rates of return in February was rather narrow and fluctuated between +6,42% and -5,03%.  An average rate of return in  the closed-end funds’ sector according to monthly result somewhat decreased, but remained in the positive zone and reached +2,13%. (January indicator: +2,39%).

In February, only one fund registered negative performance, and the rest of the funds managed to demonstrate positive growth dynamics.

The best results by the rates of return earned were demonstrated by funds “Ukrainian Exchange Index” (+6,42%), “AntiBank” (+4,05%), and “KINTO-Spring” (+3,83%).
Negative performance was registered in “Pershyi Zolotyi” fund only (-5,03%).