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

Political crisis, the way out from which neither the authorities nor protesters can still find, not in the best way influences the stock indexes. But, except political pressure, the Ukrainian market is affected by a number of negative events, such as decrease in a sovereign rating of the country and decrease in world indexes owing to the desire of investors to fix the excessive growth of indexes in 2013.

In January, the UX index fell -2.24%, PFTS, in the contrary, increased by +0.36%.

The withdrawal of money by investors from the public CII proceeded in the market in the beginning of 2014. Thus, the greatest losses were in those sectors the exit from which is the most available to investors – the open-ended and interval СII. And the amount of payments to investors in the sector of open-ended funds can only be compared with the closing of several funds which was observed last year. At the same time closed-end CII not only "held blow", but also managed to increase the cumulative NAV.

OPEN-ENDED FUNDS

According to the UAIB data, NAV of 29 open-ended CII constituted UAH 87.62 mln as of 31.01.2014. According to their indicators  as at the end of the last month, an aggregate net assets decrease comprised – UAH 9510.22 thsd. (-9.79%). Such cash outflow in January took place because of the considerable payments to investors in order of redemptions.
In January the range of rates of return of investment funds varied between +4.08% and -31.46%, therefore the average monthly yield in the sector made -0.22%.

Based on January results, growth leaders in the sector of open-ended CII were:

· "UNIVER.UA/Iaroslav Mudryi: Fond Aktsii" (+UAH 86.29 thsd. (+11.76%)) – owing to an additional placement of 144 pieces of certificates (increase in circulation by 11.08%) generated net capital inflow amounting to UAH 80.98 thsd.;
· "Argentum" (+UAH 27.60 thsd. (+1.62%) - also attracted UAH 27.89 thsd. "net" by increase in number of certificates in circulation by 1.65%;
· "UNIVER.UA/Myhailo Grushevskyi: Fond Derzhavnyh Paperiv" (+UAH 30.98 thsd. (+1.67%)) - received UAH 9.24 thsd. of net inflow thanks to invest portfolio's positive revaluation.

The largest payments to investors in January were made by the following funds:

· "OTP Klasychnyi" (-UAH 9462,73 thsd (-36.16%) - the greatest net outflow in the amount of UAH 10041.72 thsd. in connection with the considerable redemption of certificates from investors (-37.56% in circulation);
· "OTP Obligatsiinyi" (-UAH 184,21 thsd. (-12.16%) - net outflow constituted UAH 210.63 thsd. also through the redemption of certificates from investors (-13.71%);
· "OTP Fond Aktsii" (-UAH 105,38 thsd. (-2.33%)  through presenting to repurchase a significant amount of investment certificates (-2.95% in circulation) the net outflow constituted UAH 133.80 thsd.

The list of the main players of sector in January underwent changes. The first place among the open-ended CII by market share was won by “KINTO-Klasychnyi” fund (22.29% of the aggregate NAV, UAH 19.53 mln) which shifted the “OTP Klasychnyi” fund to the second place (19.07%, UAH 16.71 mln)). The third place was taken by “Sparta Zbalansovanyi” fund (10.38%, 9,1 million UAH), the fourth – occupied by “FIDO Fond Obligatsiinyi” (5.41%, UAH 4.74 mln). "OTP Fond Aktsii" stood at the honourable fifth place (5.03%, UAH 4.41 mln).

Among the leaders by the rates of return were funds: "CEM Azhio" (+4.08%), "OTP Klasychnyi" (+2.24%) and "Altus-Strategichnyi" (+2.24%).

"Bonum Optimum" (-31.46%), "Konkord Dostatok" (-0.89%) and "Konkord Stabilnist" (-0.54%) showed the worst indicators in January.

INTERVAL FUNDS

In January, the review included 8 interval CII, which net assets amounted to UAH 20.32 mln, according to UAIB data. In comparison with indicators of this sector as at the end of the last month, cumulative NAV decreased by UAH 506.82 thsd (-2.43%).

 In the first month of the year an outflow of capitaI was fixed in the sector owing traditionally to the payments to investors.

In January, the growth leaders  in the sector of interval CII were:

· “Zbalansovanyi Fond “Parytet” (+UAH 15.43 thsd. (+1.52%)) – fund’s net asset value  increased due to portfolio revaluation, there were no inflow in the fund;
· "Optimum" (+UAH 8.25 thsd (+1.20%)) – NAV also grew at the expense of an asset revaluation, the fund didn't receive the net inflow.

The following funds had the greatest losses of net assets in January:

· "Platynum" (-UAH 468.31 thsd. (-4.62%) - the greatest net outflow in the amount of UAH 334.75 thsd owing to considerable redemption of certificates from investors (-3.24% in circulation);
· "TASK Ukrainskyi Kapital" (-UAH 37.45 thsd. (-2.34%)) – the net outflow constituted UAH 29.03 thsd. because of a negative asset revaluation and presentation of 55 cecurities by investors;
· "Konkord Perspectiva" (-UAH 13.01 thsd. (-0.49%)) – also because of a negative asset revaluation and payments to investors (-0.32% in circulation), the net outflow constituted UAH 8.31 thsd.

The range of rates of return of interval funds in January fluctuated from +1.52% to -4.74%. Average yield of the sector of interval funds was the second month in a row in the red zone and constituted -0.41%.

Following the results of January only three funds fixed positive result: "Zbalansovanyi Fond “Parytet"" (+1.52%), "Optimum" (+1.20%) and "Orion" (+1.16%).

The following  funds showed  the worst indicators in January: "UNIVER.UA/Otaman: Fond Perspectyvnyh Aktsii" (-4.74%), "Platynum" (-1.42%) and "TASK Ukrainskyi Kapital" (-0.53%).

CLOSED - END FUNDS

9 closed-end CII which net assets value for the end of month made UAH 12.35 mln are included to the overview in January. According to the presented figures the cumulative NAV of these funds increased by UAH 84.26 thsd (+0.79%). At the moment the sector of closed - end public CII is the only one that fixed the positive growth of NAV since the beginning of the year.

Leaders of growth of NAV in the sector became:

· "Antybank" (+UAH 92.19 thsd. (+2.71%)) – growth of net assets occurred only due to  portfolio assets revaluation;
· "Tsentavr" (+UAH 33.04 thsd. (+2.22%)) – NAV of the fund increased also at the expense of an assets’ revaluation,  the fund didn't receive  the net inflow;
· "UNIVER.UA/Skif: Fond Neruhomosti” (+UAH 27.40 thsd. (+2.25%) – net assets grew because of invest portfolio’s positive revaluation.

The greatest losses of net assets in January were experienced by “Indeks Ukrainskoi Birzhi” fund (-UAH 76.94 thsd. (-2.62%)) – because the portfolio follows the UX "blue chips" index, which sank in January.

Based on monthly results, any fund in the sector had no net inflow or outflow of capital.

The range of rates of return of the closed-end funds in January  varied between +2.71% and -2.62%. The average monthly yield in the sector of closed-end funds made +0.92% (in December it stood at +0.43%). That is the best indicator for the month in the market.

Only one fund experienced a negative result in January – “Indeks Ukrainskoi Birzhi” fund (-2.62%) – whereas the others managed to show positive dynamics of growth.

The following funds showed the best results on rates of return:

· "Antybank" (+2.71%),
· "UNIVER.UA/Skif: Fond Neruhomosti" (+2.25%), and
· "Tsentavr" (+2.22%).