Monthly Performance Review of Publicly Offered CII in Ukraine. October 2015

In October 2015 the Ukrainian stock market was energized by local council elections. Fears of opposition’s and separatist-minded political forces’s revenge also led to fluctuations in the currency market. SSMNC decision to revoke the license of one of the leading organizers of the stock trading - stock exchange PFTS - also added to the players’ pessimism. Against this backdrop, stock markets finished the month with a noticeable drop in the indices.

At the end of the month Ukrainian stock indices fell to their lowest level in the past three years, the index of the Ukrainian Exchange fell by 9.07% (from the beginning of the year it lost 23.24%), while the PFTS index - by 9.66% (YTD decline amounted to 29.7%).

As per UAIB data, the NAV of 24 open-ended CII as of 29.10.2015 constituted UAH 55.69mln. According to the indicators at the end of October, the overall decrease in net assets’ value amounted to UAH -3,635.91 thsd. (-6.13%). The total net outflow from funds in the sector amounted to -UAH 284.60 thsd. due to rather significant payments to investors in certain funds.

Sector’s funds finished the month mostly with a decrease of profitability, only 11 funds showed an increase. The range of rates of return of open-ended CII varied from +4.88% to -92.63%.

Based on October results, the leaders of growth in the sector were:

«VSI» (+UAH 110.87 thsd. (+7.03%)) – due to additional placement of 32 certificates (increase in circulation by 2.05%) received a net inflow in the amount of UAH 29.07 thsd.;

«ТАSК Resurs» (-UAH 3.90 thsd. (-0.42%)) – despite the decline in the value of the investment portfolio’s components, attraction of additional investors’ funds (+0.32% in circulation) yielded UAH 2.94 thsd. of net inflow;

«UNIVER.UA/Volodymyr Velykyi: Fond Zbalansovanyi» (-UAH 23.92 thsd. (-2.30%)) – attraction of investors’ moneys (+0.17% in circulation) allowed the fund to receive "net" UAH 1.72 thsd.

The greatest payments to investors in October were made by the following funds:

“Premium – Fond Zbalansovanyi” (-UAH 340.80 thsd. (-45,91%)) – the largest net outflow in the amount of – UAH 129.71 thsd. associated with the redemption of a significant number of certificates from investors (-24.36% in circulation);

«Premium – Fond Indeksnyi» (-UAH 3,048.50 thsd. (-94.74%)) – negative revaluation of NAV and та redemption of a significant number of certificates from investors (-28.70% in circulation) resulted in capital outflow in the amount of – UAH 69.45 thsd.;

«OTP Obligatsiinyi» (-UAH 34.68 thsd. (-6.45%)) – through presenting for redemption of 26 investment certificates experienced a net outflow in the amount of –UAH 42.86 thsd.

There were significant changes in the list of the major sector’s players in October. The first place among open-ended CII by market share was occupied by “KINTO-Klasychnyi” fund (38.04% of total NAV (UAH 21.18 mln.), the second place – by "UNIVER.UA/Myhailo Grushevskyi: Fond Derzhavnyh Paperiv" (7.12% (UAH 3.96 mln.)). The third place went to "Sofiivskyi" fund (6.42% (UAH 3.58 mln.), shifting “KINTO-Ekviti” fund (6.11% (UAH 3.40 mln.) to the fourth place. " Altus – Depozyt " was located at the fifth place (5.32% (UAH 2.96 mln.)).

The following funds should be notedamongtheleadersbytheratesofreturn: «VSI» (+4.88%), «UNIVER.UA/Myhailo Grushevskyi: Fond Derzhavnyh Paperiv» (+4.42%) та «UNIVER.UA/Taras Shevchenko: Fond Zaoshchadzhen» (+2.64%).

The worst indicators of changes in the value of their securities were demonstarated by the following funds in October: «Premium – Fond Indeksnyi» (-92.63%), «Premium – Fond Zbalansovanyi»

(-28.50%) and «Argentum» (-8.47%).

In October the review included 7 interval CII, which net assets, according to UAIB data, equaled to UAH 16.86 mln.Compared with this sector’s indicators at the end of the previous month, an aggregate NAV of funds decreased by-UAH 1,039.34thsd.(-6.70%).

In October no interval fund successed to raise investors’ funds.

The largest payments to investors in October were made by “Platynum” fund (-UAH 1,046.99 thsd. (-10.45%)) – investors presented for redemption 417 securities (-1.28% in circulation), that led to net outflow in the amount of -UAH 119.87 thsd.

The range of interval funds’ rates of return was in October from +14.07% to -9.29%.

“Zbalansovanyi Fond Parytet” was the leader by the rates of return (+14.07%).

The worst indicators of changes in the value of their securities were demonstrated by thefollowing funds: «Platynum» (-9.29%), «Aurum» (-4.78%) та «UNIVER.UA/Otaman: Fond Perspectyvnyh Aktsii» (-2.72%).

CLOSED-ENDFUNDS

Net asset value of 4 closed-end CII, which were included in October review, at the end of the month comprised UAH 11.66 mln. According to the filed indicators, the aggregate NAV of these funds decreased by -UAH 192.55 thsd.(-1.62%).

According to the October’s results,the leader in raising funds from investors was “Indeks Ukrainskoi Birzhi” (-UAH 428.39 thsd. (-7.51%))– despitethedeclineofporfolio’scomponents’ value,additionalplacementof2,381 equities (increaseincirculationby 1.26% allowed the fund to receive a net inflow in the amount of UAH 69.60 thsd.

No other fund recorded any changes in net equity.

Range of closed-end funds’ rates of return in October fluctuated in the interval from +11.39% to -11.14%.

The leader by the rates of return was “AntyBank” (+11.39%).

The worst indicators of changes in the value of their securities were demonstrated in October by the following funds: «UNIVER.UA/Skif: Fond Neruhomosti» (-11.14%), «Indeks Ukrainskoi Birzhi»

(-8.67%) та «TASK Universal» (-1.26%).