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

In November leading global stock exchanges were accelerating growth pace, whilst national trading participants were inspired by a close signing of EU-Ukraine Association Agreement.  That allowed Ukrainian stock market participants to make up for what had been lost in August-September, though a pause in the said process predictably resulted in a market meltdown.

However, according to November result, Ukrainian exchanges managed to close the month with growing indicators: Ukrainian Exchange Index grew 4,52%, and PFTS Index–0,93%.

Despite stock exchange indexes for almost a year had been at the level of their historical lows, a favorable situation in November allowed public CII to improve their performance results, though no substantial inflow of investors’ moneys was observed. Among positive achievements of the month was a decrease in the participants’ moneys outflow. 

OPEN-ENDED FUNDS

According to the UAIB data, the NAV of 31 open-ended CII as of 29.11.2013 reached UAH 104,38 mln. Proceeding from the indicators as of the previous month end, an aggregate net asset decrease comprised –UAH 1 827,75 thsd. (-1,72%). The dynamics of net capital changes in the sector remained negative throughout November.

The profitability of investment funds fluctuated between +3,16% and -4,51%. An average rate of return of open-ended CII for the second month in a row was positive, which allowed to improve an average indicator “rate of return since year beginning” to +2,67%.

Based on November results, growth leaders in the sector of open-ended CII were:
  "UNIVER.UA/Mykhailo Hrushevsky: Government Securities Fund" (+UAH 40,47 thsd. (+2,27%)) – owing to positive asset revaluation and additional placement of certificates (increase in circulation by 1,73%) generated UAH 30,96 thsd. worth of net inflow.;
"UNIVER.UA/Yaroslav The Wise - Equities Fund" (+UAH 3,82 thsd. (+0,52%)) – also as a result of asset value growth and additional placement of 13 certificates had a net capital inflow in amount UAH 7,44 thsd.;
“Andromeda” (+UAH 6,09 thsd. (+0,42%)) – received a minor net capital inflow  (UAH 3,59 thsd.) as a result of portfolio revaluation and attraction of investors’ moneys.

The greatest payments to investors in November  were made by the following funds:
 “OTP Classic” (-UAH 1 910,35 thsd. (-6,87%) – experienced the greatest net outflow among all open-ended CII in amount UAH 2 214,63 thsd. in connection with significant payments made to investors;
“OTP Equity Fund” (-UAH 20,28 thsd. (-0,41%) – as a result of negative revaluation of the investment portfolio and redemption of investment certificates (-1,53% in circulation) from investors had a net outflow of UAH 75,88 thsd.;
“Premium-Index Fund” (-UAH 3,46 thsd. (-0,10%) – also owing to settlements with investors (-1,62% of certificates in circulation) had UAH 56,52 thsd. worth of net outflow.

In November there were no changes in the distribution of funds by net asset value. The first place by market share among open-ended CII went to “OTP Classic” fund (24,80% of the aggregate NAV (UAH 25,89 mln.)), and the second one – to “KINTO-Classic” fund (19,52% (UAH 20,38 mln.)). Fund “Sparta Balanced” took the third place (8,71% (UAH 9,09 mln.)). “OTP Equity Fund” remained on the fourth place (4,67% (UAH 4,88 mln.), and pride of the fifth place was taken by  “FIDO Bond Fund” (4,46% (UAH 4,66 mln.)).

Among the leaders by the rates of return earned were funds: “Sofiyvsky” (+3,16%), "UNIVER.UA/Volodymyr The Great: Balanced Fund" (+2,61%), and “Art Index” (+2,47%).

The most poor performance results in November were demonstrated by fund “VSE” (-4,51%), “KINTO-Treasury” (-1,19%), and "Premium - Balanced Fund" (-0,98%).

INTERVAL FUNDS

November review covers 11 interval CII, the net assets of which, according to UAIB data, comprised UAH 40,87 mln. Compared to this sector indicators as of the preceding month end, the aggregate NAV decreased by UAH 373,89 thsd. (-1,06%) owing to a minor outflow of investors’ moneys.

In November, in the sector of interval CII the leaders by moneys attracted were:
“Orion” (-UAH 10,67 thsd. (+0,49%)) – despite a negative revaluation of the assets within portfolio, owing to an additional placement of securities received UAH 3,11 thsd. of net inflow;
“Platinum” (+UAH 354,47 thsd. (+3,73%)) – due to its investment portfolio value growth and attraction of investors’ moneys generated net capital inflow in amount UAH 3,08 thsd.

The rest of funds did not register positive net capital changes, though increased their net asset value owing to investment portfolio revaluation.

The greatest payments to investors in November  were made by the following funds:
 “OTP Balanced” (-UAH 248,34 thsd. (-17,70%) – experienced the greatest net capital outflow reaching UAH 253,32 thsd. in connection with a negative revaluation of its portfolio and substantial payments to investors (-17,95% of securities in circulation);
"Concorde Perspectiva" (-UAH 47,42 thsdн. (-1,73%)) – net outflow incurred as a result of negative revaluation of the investment portfolio and redemption of securities from investors (-1,55% in circulation) comprised UAH 42,42 thsd.;
“Aurum” (+UAH 10,91 thsd. (+0,57%)) – in spite of a positive revaluation of the assets in its portfolio as a result of payments made to investors had UAH 23,66 thsd. worth of net outflow.

In November, interval funds’ rates of return ranged between +3,70% and -19,36%. An average rate of return of the sector of interval funds for the first during three months was negative and comprised -2,47%. The sector of interval CII ceased being the leader by the rate of return since year beginning, and respective indicator comprised 5,78%.

The highest rates of return in November were earned by funds “Platinum” (+3,70%), “Aurum” (+1,81%), and  "Balanced Fund "Parity" (+1,43%).

The most poor performance was demonstrated by funds "UNIVER.UA/Otaman: Fund of Perspective Equities" (-19,36%), "Prominvest-Keramet" (-9,71%), and “Optimum” (-2,84%).

CLOSED-END FUNDS

November review covers 10 closed-end CII, the net asset value of which as of month end comprised UAH 342,1 mln. According to the indicators filed, an aggregate NAV of these funds increased by UAH 164,35 thsd. (+1,50%). Such significant net asset value growth throughout all sectors was due to an increase of the asset value in funds’ investment portfolios.

All funds in the sector of closed-end CII increased their NAV via asset revaluation, but generated no net capital inflow.

The rates of return of closed-end funds in November ranged between +4,97% and -2,93%.  An average rate of return in the closed-end funds’ sector, according to monthly result, lowered by 0,13%,  though the sector rate of return since year beginning comprised +5,81%, which proved to be the best performance result throughout all sectors of the market.

According to November results, only three funds registered decline, whilst the rest of funds generated positive rates of return. The highest rates of return were demonstrated by funds “Ukrainian Exchange Index” (+4,98%), “AntiBank” (+1,62%), and "UNIVER.UA/SKIF-Real Estate Fund" (+0,05%).

The most poor results were registered in funds “KINTO-Summer” (-2,93%), “KINTO-Spring” (-2,30%), and “KINTO-Autumn” (-0,41%).