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

After an almost half-year growth, stock indexes around the globe drooped 2,4% on average after the USA had announced their intention to bring troops to Syria. Furthermore, members of the Open Market Committee declared their plan to start cutting spending under asset purchase program if the state of the economy duly improves. Bear moods were also promoted by oil and gold price decreases.

In Europe, due to an absence of significant macroeconomic data, attention of the market players was also focused on corporate reports of a number of companies which proved to be not that optimistic, with the leaders of decline being banking sector and mining industry representatives.

In addition to worldwide negative moods, the Ukrainian market was pressured by the trade war with Russia. In August, the Ukrainian Exchange Index lowered 5,62%, and PFTS index – 2,42%.
 

OPEN-ENDED FUNDS

According to the UAIB data, the NAV of 36 open-ended CII as of 30.08.2013 comprised UAH 121,74  mln. Proceeding from the indicators as of the previous month end, an aggregate net asset decrease reached –UAH 16 871,39 thsd. (-12,17%). The greatest net capital outflow registered in the sector of open-ended CII in August was due to termination of several funds.
Open-ended CII ended the month with a negative value of asset change, and the rates of return of investment funds fluctuated within the range of +3,65% and -8,54%. An average sector rate of return comprised -1,29%, and the rate of return since year beginning succeeded in remaining in the positive zone with +0,94%.

Based on August results, growth leaders in the sector of open-ended CII were:
 “OTP Equity Fund” (-UAH 23,15 thsd. (-0,48%)) – despite NAV decrease in connection with asset revaluation, owing to an additional placement of certificates (increase in circulation by 1,83%) generated net capital inflow in amount UAH 88,83 thsd.;
“KINTO-Equity” (-UAH 153,86 thsd. (-4,23%)) – also owing to an additional placement of certificates received net capital inflow in amount UAH 11,96 thsd.;
"UNIVER.UA/Mykhailo Hrushevsky: Government Securities Fund" (+UAH 17,56 thsd. (+1,03%) – due to asset revaluation and additional attractions of investor moneys generated UAH 6,37 thsd. “net”.
The rest of funds did not register net capital changes.

The greatest payments to investors in August  were made by the following funds:
 “Raiffeisen Money Market” (-UAH 13 321,55 thsd. (-76,19%) – experienced the greatest net outflow among all open-ended CII in amount UAH 13 160,71 thsd. in connection with termination of the fund and settlements with the investors; 
“OTP Classic” (-UAH 1 116,90 thsd. (-0,04%) – net outflow reached UAH 1 782,09 thsd. and was also associated with redemption of a substantial quantity of investment certificates from investors  (-4,76%);
“Raiffeisen Equity” (-UAH 400,86 thsd. (-37,29%) – also in connection with termination of the fund and settlements with investors generated UAH 318,18 thsd. worth of net outflow.

As a result of termination of AMC “Raiffeisen Aval”, the list of the key sector players underwent radical changes. The first place by market share among open-ended CII went to “OTP Classic” fund (29,29% of aggregate NAV (UAH 35,66 m;n.)), and the second one – to “KINTO-Classic” fund (15,76% (UAH 19,18 mln.)). Fund “Sparta Balanced” took the third place (7,47% (UAH 9,09 mln.)). The fourth place went to ”OTP Equity Fund” (3,94% (UAH 4,79 mln.), and “FIDO Bond Fund” took pride of the fifth place (3,86% (UAH 4,69 mln.)).

Among the leaders by the rates of return earned should be noted «Delta – Fund Balanced” (+3,65%), “Delta – Money Market Fund” (+3,06%), and “VSE” fund (+1,83%).

The poorest performance results in August were generated by “Raiffeisen Equity” fund (-8,54%), “KINTO-Classic” fund (-6,44%) and “FIDO Ukrainian Equity Fund” (-5,76%).

INTERVAL FUNDS

August review covers 11 interval CII, whose net assets, as per the UAIB data, comprised UAH 38,69 mln. Compared to this sector indicators as of preceding month end, the aggregate NAV lowered by UAH 416,94 thsd. (-1,29%).

In this month, once again, a decrease in the net asset value was observed and was due to an overall unfavorable situation, as well as payments to investors.

In August, in the sector of interval CII the leaders by moneys attracted was:
 “Platinum” fund (-UAH 85,43 thsd. (-,83%)), which despite NAV lowering in connection with asset revaluation, owing to additional placement of 47 securities (+0,12% in circulation) generated UAH 11,93 thsd. worth of net inflow.
The rest of funds did not register net capital changes.

The greatest losses of net assets in August were experienced by the following funds:
 “Concorde Perspectiva” fund (-UAH 37,65 thsd. (-1,35%) – incurred the greatest net outflow in amount UAH 25,12 thsd. owing to negative asset revaluation and in connection with redemption of 449 securities from investors (-0,91% in circulation);
“OTP Balanced” fund (-UAH 1,14 thsd. (-0,08%)) – net outflow reached UAH 16,25 thsd. and was also associated with negative asset revaluation and redemption of 17 securities (-1,17%) from investors;
"UNIVER.UA/Otaman: Fund of Perspective Equities" (-UAH 24,81 thsd. (-3,54%) – net outflow comprised UAH 9,75 thsd. and was also due to redemption of a material quantity of investment certificates (-1,39% in circulation) from investors.

The range of interval funds’ rates of return in August fluctuated between +3,38% and -5,15%. An average monthly rate of return of interval funds was negative for the third month in a row (-0,76%), though the sector remained the leader by the rate of return since year beginning with an indicator of +4,98%.

According to August performance results, only three funds registered growth, whilst the rest generated negative rates of return. The greatest rates of return were earned by funds “Optimum” (+3,38%), “OTP Balanced” (+1,10%), and “Orion” (+0,12%).

The worst performance was demonstrated by funds “Aurum” (-5,15%), "UNIVER.UA/Otaman: Fund of Perspective Equities" (-2,18%), and “Absolute-Invest” (-1,55%).

CLOSED-END FUNDS

August review covers 10 closed-end CII, the asset value of which as of month end comprised UAH 18,676 mln. According to the indicators filed, an aggregate NAV of these funds decreased by UAH 9 247,95 thsd. (-33,12%). Such significant net asset value drop was in the first turn due to substantial payments to investors in connection with termination of “Raiffeisen Foreign Currency” and “Pershyi Zolotyi” funds, and in the last turn – to stock indicators’ lowering.

Sector growth leader was:
 ‘”Ukrainian Exchange Index” fund (-UAH 82,00 thsd.(-3,25%)), which despite NAV lowering as a result of asset revaluation due to additional placement of 2000 equities (increase in circulation by 2,36%), generated net capital inflow in amount UAH 57,99 thsd.

The greatest losses of net assets in August  were incurred by the following funds:
“Raiffeisen Foreign Currency” fund (-UAH 7 128,70 thsd. (-63,33%)) – net capital outflow comprised UAH 7 079,06 thsd. and resulted from termination of the fund;
“Pershyi Zolotyi” fund (-UAH 1 946,01 thsd. (-33,91%) – also as a result of termination lost UAH 2 124,02 thsd. “net”.

The rest of the funds registered no changes in the net capital.

The rates of return of closed-end funds’ in August ranged between +4,96% and -5,47%. An average rate of return in the closed-end funds’ sector, according to monthly result, lowered by 1,02%, and the sector rate of return since year beginning comprised -0,09%.

According to August results, only three funds registered growth, whilst the rest of funds generated negative value rates of return. The best results by the rates of return were demonstrated by funds “Pershyi Zolotyi” (+4,96%), "UNIVER.UA/SKIF-Real Estate Fund" (+1,23%), and “Centavr” (+0,46%).

The poorest performance was registered in funds ‘”Ukrainian Exchange Index” (-5,47%), “KINTO-Spring” (-5,04%), and “KINTO-Autumn” (-2,19%).