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

In December, Christmas rally started in the leading stock exchanged around the globe. During 2013 US, European and Japanese indexes grew by more than 28% on average, though for the Ukrainian market that proved to be not enough to overcome negative trend.

In December, Ukrainian exchanges closed mixed:  the Ukrainian Exchange index added 0,39%, and PFTS index, vice versa, lost 0,02%.

Despite stock indexes’ decline (during the year UX index lost 4,26%, and PFTS index  -8,57%), public investment funds, based on their annual performance result, managed to register positive rate of return: the sector of closed-end CII became first, interval CII – second, and the sector of open-ended funds – third. 

OPEN-ENDED FUNDS

According to the UAIB data, the NAV of 31 open-ended CII as of 30.12.2013 reached UAH 103,10 mln. Proceeding from the indicators as of the previous month end, an aggregate net asset decrease comprised –UAH 1 280,95 thsd. (-1,23%). In December, the dynamics of net capital changes in the sector somewhat slowed down, but remained negative.

The profitability of investment funds fluctuated between +46,14% and -9,03%. An average rate of return of open-ended CII for the third month in a row was positive, which allowed the sector of open-ended CII to close the year with a rate of return equal to +4,26%.

Based on December results, growth leaders in the sector of open-ended CII were:
 “Andromeda” (+UAH 29,47 thsd. (+2,02%)) – owing to positive asset revaluation and additional placement of certificates (increase in circulation by 0,98%) generated net capital inflow in amount UAH 14,44 thsd.;
“ART Index” (+UAH 0,50 thsd. (+0,32%)) – due to an additional placement of 30 certificates received net capital inflow in amount UAH 0,98 thsd.;

The greatest payments to investors in December  were made by the following funds:
 “KINO-Classic” fund (- UAH 961,77 thsd. (-4,72%) – experienced the most material net outflow among all open-ended CII reaching UAH 659,78 thsd. in connection with substantial payments to investors (-3,26% of IC in circulation);
“OTP Equity Fund” (-UAH 359,26 thsd. (-7,37%) – as a result of negative investment portfolio revaluation and due to redemption of its investment certificates (-7,04% in circulation) from investors incurred net outflow in amount UAH 340,89 thsd;
“VSE” fund (-UAH 161,34 thsd. (-10,44%) – also owing to settlements with investors (-9,20% of certificates in circulation) faced net inflow of UAH 140,58 thsd.

In December, no material changes in the distribution of funds by net asset value took place. The first place by market share among open-ended CII went to “OTP Classic” fund (25,38% of the aggregate NAV (UAH 26,17  mln.)), and the second one – to “KINTO-Classic” fund (18,83% (UAH 19,42 mln.)). Fund “Sparta Balanced” took the third place (8,82% (UAH 9,09 mln.)). “FIDO Bond Fund” took the fourth place (4,56% (UAH 4,70 mln.), whilst the pride of the fifth place was taken by “OTP Equity Fund”  (4,38% (UAH 4,52 mln.)).

The leaders by the rates of return earned were funds: “Bonum Optimum” (+46,14%), "Premium - Balanced Fund" (+3,91%), and  “Premium – Index Fund” (+2,42%).

The most poor performance results in December were demonstrated by fund “SEM Azhio” (-9,03%), “Delta – Money Market Fund” (-4,43%), and "Delta-Fund Balanced" (-1,91%).

INTERVAL FUNDS

December review covers 9 interval CII, the net assets of which, as per UAIB data, comprised UAH 21,99 mln. Compared to this sector indicators as of the preceding month end, the aggregate NAV increased by UAH 153,57 thsd. (+0,76%) owing to a positive asset revaluation.

In December, in the sector of interval CII the leader by moneys attracted was “Platinum” fund (+UAH 291,03 thsd. (+2,95%)), which, as a result of a positive revaluation of assets within its portfolio and due to an additional placement of securities, generated UAH 4,87 thsd. worth of net capital inflow.

The rest of funds did not register positive net capital changes, though increased their net asset value owing to their investment portfolio revaluation.

The greatest payments to investors in December  were made by the following funds:
 "Concorde Perspectiva" (-UAH 54,06 thsd. (-2,01%) – experienced the greatest net capital outflow in amount UAH 49,17 thsd. owing to a negative revaluation of its portfolio and significant payments to investors (-1,83% of the securities in circulation);
"Balanced Fund "Parity" (-UAH 11,17 thsd. (-1,09%)) – as a result of a negative revaluation of its investment portfolio and redemption of securities from investors (-1,71% in circulation) net outflow comprised UAH 16,97 thsd.;
"UNIVER.UA/Otaman: Fund of Perspective Equities" (-UAH 41,11 thsd. (-6,08%)) – payments to investors resulted in UAH 7,30 thsd. worth of net outflow.

In December, interval funds’ rates of return ranged between  +4,90% and -6,94%. An average rate of return in the sector of interval funds was negative for the second month in a row and comprised -0,92%. Annual rate of return in the sector of interval CII reached +4,72%.

The highest rates of return in December were earned by funds “Platinum” (+2,90%), “Orion” (+1,34%), and “OTP Balanced” (+1,01%).

The most poor performance was demonstrated by funds “Optimum” (-6,94%), "UNIVER.UA/Otaman: Fund of Perspective Equities" (-5,05%), and “Aurum” (-1,08%).

CLOSED-END FUNDS

Monthly review covers 7 closed-end CII, the net asset value of which as of month end comprised UAH 15,93 mln. According to the indicators submitted, an aggregate NAV of these funds increased by UAH 2 138,96 thsd. (+16,90%). Such significant net asset value growth throughout all sectors was due to attraction of substantial amounts of investors’ moneys.

In December, in the sector of closed-end CII the leader by moneys attracted was “OTP Valutniy” fund (+UAH 2113,96 thsd. (+67,24%)) – owing to attraction of substantial volumes of investor monies (+65,37% of securities in circulation) it generated UAH 2 055,78 thsd. of net capital inflow.

The rest of funds experienced zero net capital change.

The rates of return of closed-end funds in December fluctuated between +1,66% and -1,24%. An average rate of return in the closed-end funds’ sector, according to monthly result, increased by  0,43%, and in annual terms the sector rate of return reached +6,30%, being the highest indicator throughout all sectors of the market of public CII.

According to December results, only two funds registered decline, with the rest of funds generating positive rates of return. The highest rates of return were demonstrated by funds "UNIVER.UA/SKIF-Real Estate Fund" (+1,66%), “Centavr” (+1,24%), and “OTP Valutnyi” (+1,13%).

The most poor results were registered in funds “KINTO-Winter” (-1,24%) and “AntiBank” (-0,30%).