Monthly Performance Review of Publicly Offered CII in Ukraine. August 2014

Entire month of August Ukrainian stock indexes were in the downward trend. First of all, investors’ moods were under pressure of expectations of full-scale invasion of Russian troops.

Besides this, the losses of personnel of Ukrainian Military Forces and volunteer battalions near Illovaisk, sassy border crossing by so-called “humanitarian convoy’ led to the largest indexes’ drop from the beginning of the year. Therefore, based on August results, Ukrainian Exchange index lost 10.71%, and PFTS index fell by 6.58%.

So, decline in rates of return across all sectors of public CII was quite natural. Funds, focused on risky instruments (equities) suffered the greatest losses – by NAV and outflows of investors’ funds. In contrast, funds that invested in instruments with fixed income, received a positive return and “commitment” of investors.

In terms of rates of return "since the beginning of the year" sectors of public CII were distributed as follows: on the first place - the closed-end funds (+22.28%), on the second one – open-ended CII (+12.44%), interval CII (+9.89%) are on the third place.

OPEN- ENDED FUNDS

As per UAIB data, the NAV of 29 open-ended CII as of 29.08.2014 constituted UAH 74.05 mln. According to the provided data at the end of the previous month, the overall decrease in net assets amounted to UAH -1755.42 thsd. (-2.48%).  Net outflow of capital in the sector was -UAH 164.69¹ thsd. due to considerable payments to investors.

The sector finished the month with a significant “sinking” of portfolios’ yield, only 10 funds managed to not get out of the negative zone. In August the range of rates of return of investment funds fluctuated from +3.41% до -21.49%.

Based on August results, growth leaders in the sector of open-ended CII were:
 «UNIVER.UА/Мyhailo Grushevskyi: Fond Derzhavnyh Paperiv”» (+UAH 283.09 thsd.  (+12.63%)) – due to the additional placement of 130 units of certificates (increase in circulation by + 9.10%) received a net inflow in the amount of UAH 211.24 thsd.;
"UNIVER.UA/Taras Shevchenko: Fond Zaoshchadzhen” (+UAH 264.67 thsd. (+10.65%) –received UAH 195.80 of net inflow due to increasing of the number of certificates in circulation by 7.60% and increasing the asset value of the portfolio;
«Аrgentum» (-UAH 241,69 thsd.(+6,95%)) – despite the decrease in the value of assets of invest portfolios due to increasing the involvement of investors (+0,03% in circulation) received 0.83 thsd. of net inflow of capital.

The greatest payments to investors in August were made by the following funds:
 «OTP Fond Aktsii» (-UAH 335.84 thsd. (-10.85%) – the largest net outflow amounting UAH 162.53 thsd. due to redemption of the great number of certificates from the investors (-5.45% in circulation);
«UNIVER.UA/Yaroslav Mudryi: Fond Aktsii» (-UAH 203.06 thsd. (-16.07%) – the net outflow amounted to UAH 88.31 thsd. also due to the fall in the value of assets and substantial payments to investors, who presented 112 sertificates for redemption;
«КІNТО- Klasychnyi"   (-UAH 1870,20 thsd. (-99,82%) – also, due to the closure of the fund received the net outflow amounted to UAH 1858.32 thsd.

The list of major players in the sector in August changed slightly. The first place by market share in the sector of open-ended CII went to “KINTO-Klasychnyi” fund (27.79% of aggregate NAV (UAH 20.58 mln.)), the second one - to “Sparta Zbalansovanyi” fund (12.28% (UAH 9.09 mln.)). The third place went to fund “Sofiivskyi” (5.35% (UAH 3.96 mln)), the fourth one  - to "Kinto-Ekvity" (5.32% (UAH 3.94 mln), “Premium Fond Indeksnyi” (4.60% (UAH 3.41mln.))  is located on the honoured fifth place.

The leaders by the rates of return were the following funds: «Altus-Deposyt» (+3.41%), «Altus-Zbalansovanyi» (+3.30%) and  «Altus-Strategichnyi» (+2.26%).

The worst results in August were obtained by funds: «Delta_Fond Zbalansovanyi” (-21.49%), «Аrgentum» (-10.09%) and  «UNIVER.UA/Yaroslav Mudryi: Fond Aktsii» (-9.55%).

INTERVAL FUNDS

In August the review included 8 interval CII, the net assets of which, as per UAIB data, comprised UAH 21.9 mln. Compared to this sector indicators at the end of the previous month, the aggregate NAV decreased by UAH  2153.01 thsd. (-8.97%).

In August the leader by moneys attracted in the sector of interval CII was «Platinum» fund (-UAH 1147,91 thsd. (-9,32%)) – despite decrease in investment portfolio’s value, by attracting funds from investors (+0.02% in circulation) it received UAH 1.9 thsd. of net inflow.

The greatest payments  to investors in August were  made by the following funds:
 «Оrion» (-UAH 454.33 thsd. (-22,82%)) – investors presented 294 securities for redemption (-21.78% in circulation), resulting in a net outflow of capital amounted to – UAH 427.99 thsd.;
“Aurum” (-UAH 264.99 thsd. (-10.31%)) – net outflow amounted to UAH74.67 thsd. due to  presenting for redemption of 1384 securities by investors (-2.39% in cirulation);
«Коnkrd Perspectyva» (- UAH 38,19 thsd. (-1.52%)) – payments to investors resulted in a net outflow of capital in the amount of UAH 33.30 thsd.

In August, interval of funds’ rates of return ranged between  -0.20% to -9.33%..

The worst results in August were obtained by funds: «Platynum» (-9.33%), «Аurum» (-8.12%) and «UNIVER.UA/Otaman: Fond Perspektyvnyh Aktsii» (-6.21%).

CLOSED-END FUNDS

The net asset value of 5 closed-end  CII, which were included in August review at the end of the month, amounted to UAH 13.38 mln. According to the provided figures, the aggregate NAV of these funds decreased by UAH 913.63 thsd. (-6.39%).

In August no one fund received a net inflow of capital.

The biggest benefits to investors in August were done by “UNIVER.UA/Skif Fond Neruhomosti”  (- UAH 9.93 thsd. (-0.63%)) – due to investors’ presentation of securities for redemption (-3.29% in circulation) fund experienced net outflow in amount  UAH 52,09 thsd.

In August, interval of closed-end funds’ rates of return ranged between +2.75% to – 11.67%.

The leaders by the rates of return in the sector were:
“UNIVER.UA/Skif Fond Neruhomosti (+2.85%) and «Tsentavr» (+0.05%).

The worst results in August were obtained by “Index Ukrainskos Birzhi (-11.67%).

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¹ Taking into account the funds, about which there was no data at the end of the previous month, change of NAV amounted -UAH 1930.43 thsd., net inflow in the sector was -UAH 174.38 thsd.