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

Positive moods observed since year beginning in the leading stock trading floors around the globe inspire investors and push indexes up high. For the third month in a row, the indicators of European and American exchanges remain first among the leaders.

Slowing down of industrial production growth in China drew down the indexes of Asian and Pacific region, with exception of Japanese NIKKEI, which managed not to fall according to March results, as well as became a growth leader since year beginning and took the first place with +19,27%.

The European Union went on making unpopular decisions aimed at rescuing the economies of its certain members. For instance, an introduction of the tax on deposits in the bank institutions on Cyprus, the most popular offshore zone with CIS states’ business, evoked a wave of panic which resulted in a drop of indexes in Russia and Ukraine.  According to March results, Ukrainian Exchange index went down by 12,35%, and PFTS index – by 9,63%.

OPEN-ENDED FUNDS

Based on the UAIB data, the NAV of 42 open-ended CII as of 29.03.2013 reached UAH 160,33 mln. Proceeding from the indicators as of the previous month end, an aggregate net asset decrease comprised –UAH 1063,10 thsd. (-0,66%). However, for the first time since year beginning, in the sector was registered a net capital inflow, which was promoted by a significant increase of the number of investors in two funds. 
Negative moods in the stock market did not allow the sector to end the month with a positive value of asset change, though 13 funds still remained in the positive zone. In March, the range of investment funds’ rates of return was fairly broad and fluctuated between +5,90% and -11,77%, though since year beginning an average sector rate of return remained positive and reached  +0,30%.

Based on March  results, growth leaders in the sector of open-ended CII were:
“Raiffeisen Money Market” (+UAH 4145,49 thsd. (+29,96%)) – due to an additional placement of 2422 certificates (increase in circulation by 28,81%) generated a net inflow in amount UAH 4001,97 thsd.;
“TASK Resurs” (+UAH 214,55 thsd. (+28,59%) – also attracted UAH 239,20  thsd. solely by way of increasing the number of certificates in circulation by 31,95% (investors purchased 238 ІС).

The greatest payments to investors in March  were made by the following funds:
"Citadele Ukrainian Bond Fund" (-UAH 846,74 thsd. (-21,44%) – the greatest net outflow in amount UAH 867,30 thsd. in connection with redemption of 82 342 certificates (-21,97% in circulation);
“KINTO Classic” (-UAH 1926,92 thsd. (-8,35%) – net outflow reached UAH 745,21 thsd. also in connection with redemption of 2113 investment certificates (-3,35%);
“VSE” (-UAH 416,48 thsd. (-11,00%) – as a result of 444 investment certificates presented for redemption generated a net outflow in amount 369,13 thsd.

The list of the key sector players remained unchanged in March. The first place by market share among open-ended CII went to “OTP Classic” fund  (28,07% of aggregate NAV (UAH 45,01 mln.)), and the second one – to “KINTO-Classic” fund (13,19% (UAH 21,14 mln.)). “Raiffeisen Money Market” became third (11,22% (UAH 17,98 mln.)), and “Sparta Balanced” fund - fourth (5,67% (UAH 9,09 mln.). “OTP Equity Fund” took pride of the fifth place (3,20% (UAH 5,14 mln.)).

Among the leaders by the rates of return should be noted funds “SEM Azhio” (+5,90%), “Concorde Prosperity” (+3,09%), and “Altus-Deposit” (+1,40%).

The worst performance results in March were demonstrated by funds "Citadele Ukrainian Balanced Fund" (-11,77%), “SEB Equity Fund Ukraine” (-9,49%), and “ART Index” (-9,36%).

INTERVAL FUNDS

March review covers 11 interval CII, whose net assets, according to the UAIB data, reached UAH 37,18 mln. Compared to this sector indicators as of preceding month end, the aggregate NAV decreased by UAH 675,82 thsd. (-1,87%).

During this month, an inflow of capital to the sector was observed due to an increase in the number of investors.

In the sector of interval CII the leaders by moneys attracted in March were:
 “Platinum” (-UAH 245,34 thsd. (-1,95%)) – owing to additional placement of 813 securities generated UAH 235,29 thsd. worth of net inflow.
“Aurum” (-UAH 123,71 thsd. (-5,61%)) – similarly, as a result of placement of 25 securities generated UAH 1,05 thsd. in net inflow.

The greatest losses of net assets in March  were experienced by the following funds:
“Balanced Fund “Parity” (UAH 5,78 thsd. (-5,16%) – the greatest net outflow in amount  UAH 26,66 thsd, owing to a negative asset revaluation and in connection with redemption of 24 securities (-2,51% in circulation).
“Concorde Perspectiva” (-UAH 10,49 thsd. (-0,34%)) – also owing to a buyout of 80 securities (-0,15%) from investors generated a net outflow in amount UAH 4,73 thsd.;

The range of interval funds’ rates of return in March was also rather broad and fluctuated between +13,57% and -12,31%. Interval funds’ sector average rate of return, according to monthly result, was negative (-1,69%), but since year beginning the sector of interval CII demonstrated the best rate of return of +6,40%.

According to March performance, only one fund registered positive result, with the rest of funds exiting from the positive zone and generating negative values. The greatest (and the only positive one) rate of return was registered in “Otaman” fund (+13,57%).

The worst results were generated by such funds, as “UNIVER.UA/ Otaman: Fund of Perspective Equities” (-12,31%), “Aurum” (-5,65%), and “Platinum” (-3,79%).

CLOSED-END FUNDS

March review covers 10 closed-end CII whose net asset value as of month end comprised UAH 33,00  mln. Based on the indicators provided, an aggregate NAV of these funds decreased by UAH 395,44 thsd. (-1,18%). Owing to negative market situation, the sector of closed-end funds also demonstrated negative dynamics of NAV growth.

Sector growth leaders were:
“Pershyi Zolotyi” (+UAH 1363,00 thsd.(+18,08%)) – due to an additional placement of 5156 securities  (+17,86% in circulation) generated UAH 1339,87 thsd. in net inflow.

The greatest losses of net assets in March were experienced by the following funds:
"Raiffaisen Foreign Currency" fund (-UAH 1090,53  thsd. (-7,64%)) – net capital outflow reached UAH 1176,98 thsd. due to presentation for redemption of 1386 equities (-8,25% in circulation);

The rest of the funds generated zero capital inflow/ outflow owing to asset revaluations.

The range of closed-end funds’ rates of return in March fluctuated between +1,36% and -12,31%.  An average rate of return in  the closed-end funds’ sector, according to monthly result, turned out to be affected most (-4,59%), and since year beginning the sector rate of return comprised -0,07%.

In March, only three funds registered positive performance, and the rest of the funds did not manage to achieve positive growth dynamics.

The best results by the rates of return earned were demonstrated by funds “Centavr” (+1,36%), "Raiffaisen Foreign Currency" (+0,66%), and “Pershyi Zolotyi” (+0,19%).
Most negative performance was registered in funds: “Ukrainian Exchange Index” (-12,31%), “KINTO-Winter” (-7,03%), and “Univer UA/ Skif: Real Estate Fund” (-6,75%).