UAIB: Performance of the Collective Investment Institutions in Q2 2012
18 December 2012
Although downtrend was common for the global securities markets in Q2 2012, the situation in the national stock market appeared considerably more serious than in the well-developed ones, which has been traditional for the periods of crisis aggravation.
The key trends of the Ukrainian CII market in Q2 2012 were slowing down of the capital outflow from the public sector and a further decrease of the investments into equities, as the stock market crisis was deepening, along with an increase of the investments into corporate debt securities, as well as growing power of the venture sector.
The key trends of the Ukrainian CII market in Q2 2012 were slowing down of the capital outflow from the public sector and a further decrease of the investments into equities, as the stock market crisis was deepening, along with an increase of the investments into corporate debt securities, as well as growing power of the venture sector.
The number of AMC returned to downward dynamics, whilst the number of registered CII and CII that reached compliance with the standard on minimal asset volume (venture ones) continued to grow as before. The quantity of funds in the open-ended and interval sectors remained unchanged, though financial conditions pushing it towards decrease further developed.
The assets and NAV of CII continued to grow, although now solely owing to venture funds. All in all, as of 30.06.2012, an aggregate value of all CII assets reached UAH 136 945M (+4.4%), and of the net assets – UAH 120 734M (+5.6%), 92.4% of which belonged to venture funds.
The assets and NAV of CII continued to grow, although now solely owing to venture funds. All in all, as of 30.06.2012, an aggregate value of all CII assets reached UAH 136 945M (+4.4%), and of the net assets – UAH 120 734M (+5.6%), 92.4% of which belonged to venture funds.
The outflow from open-ended funds continued to slow down during the quarter and turned out to be 2.5 smaller than in Q1 (UAH 10.6M). It accounted for one half of the quarterly NAV drop in the sector – an indicator similar to the one of Q1 (UAH 20.4M, -9.9%). Just as before, capital movement in open-ended CII was mainly affected by 1-2 separate funds. At that, funds’ liquidity somewhat decreased as the assets in the form of equities were sold out.
Legal entities – residents, who held over 66% of funds’ NAV, not taking into account venture ones, and 80% – taking them into account, remained the key CII investor category in Q2 2012. In open-ended funds, just as previously, the greatest was the participation of the citizens of Ukraine (over 47%), who, however, also withdrew most of moneys from these CII. National legal entities were second by the volume of NAV held in open-ended funds (37%). Notable was a growth of the investments of the natural persons – non-residents in closed-end CII on the whole, at a simultaneous decrease thereof in venture ones. All in all, non-residents held almost 16% of all CII NAV, in particular, most in venture CII – 16.5%.
The rate of return of funds in Q2 on the whole declined, though on average was considerably better than the equity indexes’ indicators. The sectors of open-ended and closed-end CII swapped placed compared to Q1 – the open-ended ones incurred the greatest losses (-9.6%), and the closed-end ones – the smallest ones (-4.7%). The number of CII that generated positive indicators of investments’ value change decreased: among open-ended funds – from 73% to 16%, among interval and closed-end ones – from 60% to 20% and from 36% to 32% respectively.