UAIB: Performance of the Collective Investment Institutions in Q3 2012
18 December 2012
In Q3 2012, a sideways trend of the national stock indexes that was accompanied by volatility and unconfident growth of global peers, as well as Ukrainian stock market stagnation, relatively positively influenced the dynamics of collective investment institutions.
In Q3 2012, Ukrainian CII market preserved unchanged its key trends, namely: the quantity and value of CII assets grew, primarily owning to venture funds, and capital out flow from public, in particular, open-ended CII slowed down.
In Q3 2012, Ukrainian CII market preserved unchanged its key trends, namely: the quantity and value of CII assets grew, primarily owning to venture funds, and capital out flow from public, in particular, open-ended CII slowed down.
The number of AMC in Q3 returned to the level of Q1, and the number of registered, as well as recognized CII continued to increase. Venture funds, as well as closed-end non-diversified PIF, remained the main drivers of CII industry expansion. The rest of the sectors kept their number virtually unchanged, though per one liquidated open-ended fund there was one interval fund that reached compliance with the standards.
The assets and NAV of CII in Q3 grew not solely owing to venture, but to other closed-end funds as well. All in all, as at 30.09.2012, the aggregate asset value of all CII reached UAH 142 222.97M (+3.9%), of the net assets – UAH 126 703.75M (+4.9%), with the share of venture funds somewhat decreasing – up to 92.3%.
The outflow of capital from open-ended CII on the whole slowed down from UAH 10.6M to UAH 7.6M during the quarter, as the sector’s aggregate NAV went down by UAH 6.2M. Decisive impact on such indicator as flow of investor moneys was traditionally exercised by one or two funds. At that, net inflow to several other open-ended CII grew from UAH 1.1M in Q2 to UAH 1.5M in Q3.
The asset structure. In the conditions of volatile market and outflow of investments, assets in the form of equities continued to decrease. Simultaneously, compared to Q2, investments of interval and closed-end (with exception of venture ones) CII into these securities grew, though for the latter that to a certain extent was due to an increase in the number of funds. Interval and venture funds grew investments into government bonds. In venture CII, a notable increase took place in the investments into corporate rights and loans, as well as equities and promissory notes, whilst assets in the form of mortgage securities decreased for the first time since Q4 2011.
The investors of CII in Q3 2012 were, just as previously, represented mainly by legal entities-residents that held already 67.6% of the NAV of funds (with exception of venture ones), and 81.4% –including venture funds. In spite of a net outflow of investments, the citizens of Ukraine remained primary investors of open-ended CII, even though their share went down to 46.9%. In the meanwhile, virtually unchanged remained the volume of national companies’ investments into open-ended funds, which broadened their share to 38.2%. Investments of natural persons – residents were growing in closed-end, in particular, venture funds (1.61%, UAH 1 887.58M). The share of non-residents narrowed in all CII sectors (to 15.3% in aggregate), although investments of foreign companies into closed-end funds, including venture ones, increased.
The rates of return of CII in Q3 on the whole grew. Some funds remained in the negative zone, but the number of CII demonstrating NAV growth per one certificate or share of a fund significantly increased – from 16% to 68% among open-ended, from 20% to 47% among interval, and from 32% to 34% among closed-end ones. By average rate of return, unlike in Q2, it was also the sector of open-ended funds that led (+0.4%), where funds demonstrated much closer performance results, than among closed-end (+0.3%) and interval (-2%) funds. Average CII losses since the beginning of 2012 (between -10% in interval and to -8% in open-ended and closed-end ones) were moderately negative under conditions of stock indexes’ sinking by 30-34% over that period of time.
The investors of CII in Q3 2012 were, just as previously, represented mainly by legal entities-residents that held already 67.6% of the NAV of funds (with exception of venture ones), and 81.4% –including venture funds. In spite of a net outflow of investments, the citizens of Ukraine remained primary investors of open-ended CII, even though their share went down to 46.9%. In the meanwhile, virtually unchanged remained the volume of national companies’ investments into open-ended funds, which broadened their share to 38.2%. Investments of natural persons – residents were growing in closed-end, in particular, venture funds (1.61%, UAH 1 887.58M). The share of non-residents narrowed in all CII sectors (to 15.3% in aggregate), although investments of foreign companies into closed-end funds, including venture ones, increased.
The rates of return of CII in Q3 on the whole grew. Some funds remained in the negative zone, but the number of CII demonstrating NAV growth per one certificate or share of a fund significantly increased – from 16% to 68% among open-ended, from 20% to 47% among interval, and from 32% to 34% among closed-end ones. By average rate of return, unlike in Q2, it was also the sector of open-ended funds that led (+0.4%), where funds demonstrated much closer performance results, than among closed-end (+0.3%) and interval (-2%) funds. Average CII losses since the beginning of 2012 (between -10% in interval and to -8% in open-ended and closed-end ones) were moderately negative under conditions of stock indexes’ sinking by 30-34% over that period of time.