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

After profit taking of the last month, in July positive news from M&A market and improved statistics as regards industrial production and services in Europe promoted growth of all stock indexes in the Old World. In the meanwhile, successful performance demonstrated by regional companies in quarterly reports, as well as optimistic statistical data of the US labor market promoted gaining in weight by the New Words indicators as well.

Such positive news also did not leave aside the Asian and Pacific region, which ended month “in the black”, with exception of Japan, where investors decided to take profits, as NIKKEI since year beginning had grown by 31,49%.

In addition to positive signals arriving from the global trading floors, innovations directed at reanimation of the Ukrainian stock market and bringing back investors’ interest thereto (in particular, planned introduction of the Ukrainian agrarian companies’ index future for the companies traded on foreign exchanges, as well as an IPO trading floor creation) were pushing Ukrainian indexes upward. In July, Ukrainian Exchange index advanced by 2,70%, and PFTS index – by 2,4%.

OPEN-ENDED FUNDS

According to the UAIB data, the NAV of 38 open-ended CII as of 31.07.2013 comprised UAH 140,66 mln. Proceeding from the indicators as of the previous month end, an aggregate net asset decrease reached UAH 3 535,97 thsd. (-2,45%). In the sector of open-ended CII net capital outflow was registered due to significant payments to investors.

Optimistic moods in the stock market allowed open-ended CII to complete the month with positive asset change value, with only six funds failing to exit from the red zone. In July, the range of the rates of return of investment funds fluctuated between +7,63% and -3,93%. An average sector rate of return comprised +1,18%, which allowed the rate of return since year beginning to become positive with the value of +1,59%.

Based on July results, growth leaders in the sector of open-ended CII were:
 "UNIVER.UA/Mykhailo Hrushevsky: Government Securities Fund" (+UAH 55,76 thsd. (+3,37%)) – due to an additional placement of 24 certificates (increase in circulation by 1,82%) received net capital inflow in amount UAH 30,36 thsd.;
The rest of funds generated a minor capital inflow owing to asset revaluation.

The greatest payments to investors in July  were made by the following funds:
 “OTP Classic” (-UAH 2267,81 thsd. (-5,81%) – experienced the greatest net capital outflow in amount UAH 2751,38 thsd. in connection with a redemption of a significant quantity of certificates from investors (-7,02% in circulation);
“Raiffeisen Money Market” (-UAH 1120,29 thsd. (-6,02%) – net outflow reached UAH 1197,28 thsd. also owing to redemption of a substantial quantity of investment certificates (-6,42%);
“Andromeda” (-UAH 832,88 thsd. (-29,38%) – as a result of presentation for redemption of 549 investment certificates (-32,45%) experienced net capital outflow in amount UAH 948,57 thsd.

The list of the key sector players also remained unchanged in July. The first place by market share among open-ended CII went to “OTP Classic” fund (26,15% of aggregate NAV (UAH 36,77 mln.)), the second one – to “KINTO-Classic” fund (14,7% (UAH 20,67 mln.)), and the third one – to “Raiffeisen Money Market” fund (12,43% (UAH 17,49 mln.)). “Sparta Balanced” fund took the fourth place (6,47% (UAH 9,09 mln.), and “OTP Equity Fund” took pride of the fifth place (3,42% (UAH 4,82 mln.)).

Among the leaders by the rates of return earned should be noted “FIDO Bond Fund” (+7,63%), “VSE” fund (+4,62%), and “Andromeda” fund (+4,54%).

The poorest performance results in July were generated by “KINTO-Equity” fund (-3,93%), “SEM Azhio” fund (-3,86%), and “Bonum Optimum” fund (-0,81%).

INTERVAL FUNDS

July review covers 11 interval CII, whose net assets, as per the UAIB data, comprised UAH 34,29 mln. Compared to this sector indicators as of preceding month end, the aggregate NAV decreased by UAH 1057,58 thsd. (-3,16%).

During the current month, a decrease of net asset value was observed in the sector of interval funds as well, and was associated with significant payments to investors.

In July, in the sector of interval CII the leaders by moneys attracted were:
 “Aurum” (UAH 59,04 thsd. (+3,05%)) – due to asset revaluation and additional placement of 150 securities (+0,29% in circulation) generated UAH 5,71 thsd. of net inflow.
The rest of the funds did not register net capital change.

The greatest losses of net assets in July  were experienced by the following funds:
“Orion” (-UAH 635,16 thsd. (-22,85%) – experienced the most substantial net outflow in amount UAH 684,15 thsd. as a result of a negative asset revaluation and in connection with a redemption of 452 securities from investors (-24,5% in circulation);
“Platinum” (-UAH 420,57 thsd. (-3,94%)) – net outflow comprised UAH 99,21 thsd. and was also due to a negative asset revaluation and a redemption of 402 securities from investors (-0,98%).

The range of interval funds’ rates of return in July fluctuated between +2,75% and -3,52%. An average monthly rate of return of interval funds remained negative for the second month in a row (-0,29%), though the interval CII sector preserved its leadership by the rate of return since year beginning with an indicator of +5,60%.

According to July performance results, seven funds registered growth, which the rest generated negative value rates of return. The greatest rates of return were earned by “Aurum” fund (+2,75%), “Orion” fund (+2,18%), and “Balanced Fund “Parity” (+1,25%).
The poorest performance results were demonstrated by “Optimum” (-3,52%), “Platinum” (-2,99%), and “Concorde Perspectiva” (-1,92%) funds.

CLOSED-END FUNDS

July review covers 10 closed-end CII, the asset value of which as of month end reached UAH 27,92 mln. Based on the indicators filed, an aggregate NAV of these funds increased by UAH 488,66 thsd. (+1,78%). The said net asset value growth in the sector was mainly due to a positive portfolio revaluation and a minor attraction of moneys from investors.

Sector growth leaders were:
“Pershyi Zolotyi” (+UAH 454,36 thsd.(+8,60%)) – due to gold price increase and additional placement of 298 equities (+1,13% in circulation) generated UAH 60,42 thsd. worth of net capital inflow;
“Ukrainian Exchange Index” (+UAH 127,28 thsd. (+5,31%)) – also owing to attraction of investors’ moneys (+2000 equities or +2,41% in circulation) generated UAH 57,76 thsd. of net inflow;
“Raiffeisen Foreign Currency” - (+UAH 92,92 thsd. (+0,83%) – as a result of asset revaluation earned UAH 2,61 thsd. “net”.

The greatest losses of net assets in July  were experienced by “Centavr” fund (-UAH 279,94 thsd. (-13,88%)), where due to presentation for redemption of 235 equities (-14,89% in circulation) net capital outflow reached UAH 300,69 thsd.
The rest of the funds did not register net capital changes.

The rates of return of closed-end funds’ in July ranged between +7,39% and +0,45%. An average rate of return in the closed-end funds’ sector, according to monthly result, underwent the greatest changes (+2,04%), and since year beginning the sector rate of return comprised +0,22%.

In July, positive performance results were registered by all funds without exception.

The best results by the rates of return were demonstrated by “Pershyi Zolotyi” fund (+7,39%), “KINTO-Autumn” fund (+3,45%), and “Ukrainian Exchange Index” fund (+2,83,%).