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

Reserved optimism in the global trading floors observed since year beginning remained with investors throughout May – during an entire month stock trading floors in Europe and South America were growing, and even by month end, when riots and civil commotion started in Turkey and provoked panic moods, indexes managed to remain in the green zone.

Asian and Pacific region was in a counter phase – after significant growth investors were taking profits, which pulled down the indexes of Japan and Hong Kong.

In the Ukrainian market, the first half of May was a sleepy one – a great number of holidays  traditionally affected the activity level of market players. However, in the second half of the month indexes started growing rapidly owing to speculative games of trading participants that relied on positive signals from abroad. According to May results, Ukrainian Exchange index grew by 4,94%, and PFTS index – by 4,49%.

OPEN-ENDED FUNDS

May UAIB review covers 39 open-ended CII, whose aggregate NAV comprised UAH 150,99 mln. Proceeding from the indicators as of the previous month end, an aggregate net asset increase reached UAH 2463,49 thsd. (+1,66%). For the first time since year beginning, net asset growth was registered in the sector of open-ended CII, and was promoted by a favorable stock market situation.
Positive trends in the stock market allowed a prevailing majority of funds to close the month with increased rates of return, with only four of them earning negative rates of return. In May, the range of the rates of return of investment funds fluctuated between  +14,88% and -1,59%, and monthly average sector rate of return reached +1,90%, which brought the rate of return since year beginning to the positive zone with +0,48%.

Based on May results, growth leaders in the sector of open-ended CII were:
 “Raiffeisen Money Market” (+4,44%)) – owing to additional placement of 349 certificates (increase in circulation by 3,23%) generated a net inflow in amount UAH 594,18 thsd.;
“OTP Classic” (+UAH 677,45 thsd. (+1,5%) – received UAH 42,58 thsd. worth of net inflow as a result of asset revaluation, as the number of certificates placed turned out to be insignificant (investors purchased 28 IC);
“FIDO Ukrainian Equities Fund” (+UAH 34,74 thsd. (+2,66%)) – due to the moneys additionally attracted from investors, who acquired 599 certificates (+1,25%), generated UAH 16,28 thsd. worth of net inflow.

The greatest payments to investors in May  were made by the following funds:
 “OTP Equity Fund” (-UAH 79,68 thsd. (-1,69%) – the most substantial net outflow in amount UAH 232,09 thsd. in connection with redemption of 402 690 certificates (-4,86% in circulation);
“KINTO-Classic” (+UAH 299,19 thsd. (-1,51%) – despite positive asset revaluation, net outflow reached –UAH 168,96 thsd. in this fund and was connected with redemption of 507 investment certificates (-0,85%);
“Altus-Balanced” (-UAH 58,91 thsd. (-3,36%) – due to presentation for redemption of 39 (-4,6% in circulation) investment certificates generated a net outflow in amount UAH 81,01 thsd.

The list of the key sector players remained unchanged in May. The first place by market share among open-ended CII once again  went to “OTP Classic” fund  (30,42% of aggregate NAV (UAH 45,94 mln.)), the second one – to “KINTO-Classic” fund (13,3% (UAH 20,01 mln.)), and the third one – to “Raiffeisen Money Market” fund (12,58% (UAH 18,99 mln.)). “Sparta Balanced” fund took the fourth place (6,02% (UAH 9,1 mln.), and “OTP Equity Fund” took pride of the fifth place (3,08% (UAH 4,64 mln.)).

Among the leaders by the rates of return should be noted funds: “Bonum Optimum” (+14,88%), “FIDO Bond Fund” (+5,24%), and “KINTO-Equity” (+4,96%).

The poorest performance results in May were demonstrated by funds "VSE” (-1,59%), “Millenium Balanced” (-0,63%), and “PATRON” (-0,56%).

INTERVAL FUNDS

May review covers 8 interval CII, whose nets assets, according to the UAIB, comprised UAH 22,89 mln. Compared to this sector indicators as of preceding month end, the aggregate NAV increased by UAH 188,20 thsd. (+0,83%).

This month the sector experienced capital outflow in connection with substantial payments made to investors.

In May, in the sector of interval CII the leaders by moneys attracted were:
“Platinum” fund (+UAH 294,84 thsd. (+2,67%)) – due to revaluation and additional placement of 20 securities generated UAH 5,54 thsd. worth of net inflow;
“Orion” fund (+UAH 82,38 thsd. (+2,96%)) – net inflow of capital in amount UAH 1,51 thsd. was generated owing to investment portfolio revaluation.

The greatest losses of net assets in May  were experienced by the following funds:
“Concorde Perspectiva” fund(-UAH 203,46 thsd. (-6,65%) – the most substantial net outflow in amount UAH 145,83 thsd. took place due to a negative asset revaluations and a redemption from investors of 2516 securities (-4,82% in circulation);
“OTP Balanced” fund (-UAH 56,25 thsd. (-4,02%)) – also in connection with redemption of 100 securities from investors (-6,44%) experienced a net outflow in amount UAH 90,72 thsd.;
“Aurum” fund (+UAH 22,23 thsd. (+1,15%)) – despite a positive asset revaluation, net outflow reached UAH 38,32 thsd. and was caused by presentation of 1036 securities  (-1,97% in circulation) for redemption by investors.

The range of interval funds’ rates of return in May fluctuated between +3,26% and -1,92%. Interval funds’ sector average rate of return, according to monthly result, was positive (1,69%) and since year beginning the sector has demonstrated the best rate of return –  +8,41%.

Based to May performance, only one fund registered a negative performance result, with the rest of funds confidently settling in the green zone. The greatest rates of return were demonstrated by funds "UNIVER.UA/Otaman: Fund of Perspective Equities" (+3,26%), “Aurum” (+3,18%), and “Orion” (+2,91%).

The only negative result was produced by “Concorde Perspectiva” Fund (-1,92%).

CLOSED-END FUNDS

May review covers 10 closed-end CII, whose net asset value as of month end comprised UAH 30,89 mln. Based on the indicators provided, an aggregate NAV of these funds increased by UAH 19,35 thsd. (+0,06%). The sector of closed-end funds demonstrated NAV growth due to additionally attracted investor funds.

Sector growth leaders were:
“Pershyi Zolotyi” fund (-UAH 279,95 thsd.(-3,41%)) – despite a negative asset revaluation generated UAH 78,30 thsd. worth of net inflow due to an additional placement of 330 equities;
“Ukrainian Exchange Index” fund (+UAH 174,64 thsd. (+7,83%)) – also owing to investor moneys’ attraction, as 2000 equities were purchased (+2,47% in circulation), generated UAH 57,22 thsd. in net capital inflow.

The greatest losses of net assets in May were experienced by “Raiffaisen Foreign Currency" fund (-UAH 134,66 thsd. (-1,12%)) – which as a result of presentation for redemption of 120 equities experienced a net capital outflow reaching UAH 103,41 thsd.

The rest of the funds ensured zero net capital change.

The closed-end funds’ rates of return in May ranged between +12,95% and -4,34%. An average rate of return in  the closed-end funds’ sector, according to monthly result, comprised +1,9%, and since year beginning the sector rate of return comprised +0,33%.

In May, positive performance results were registered by six funds, whilst the rest did not succeed in demonstrating positive growth dynamics.

The best results by the rates of return earned were demonstrated by funds: “Univer UA/ Skif: Real Estate Fund” (+12,95%), “Ukrainian Exchange Index” (+5,23%), and “AntiBank” (+2,65%).
Most negative performance was registered in funds: “Pershyi Zolotyi”  (-4,34%), “KINTO-Summer” (-2,42%), and “KINTO- Spring” (-0,49%).