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

In July, the stock market participants were under pressure of negative factors such as the rapid and unexpected fall in the Chinese market, as well as the permanent expectation of default of Ukraine.

Therefore, the index of Ukrainian Stock Exchange lost 3.60%, while the PFTS index fell by 3.68%. However, despite the negative profitability, the sector of closed-end CII managed to attract funds from investors. Foremost, funds focused on the "blue chips" were demanded.

Open-ended investment funds continued to top the list in terms of profitability "since the beginning of the year" with a value of +6.64% (-0.73% in July), the second place was taken by interval funds (-1.22% (-1.59% for the month)), the sector of closed-end CII remained in the third place with indicator of -5.70% (-1.88%).

OPEN- ENDED FUNDS

As per UAIB data, the NAV of 23 open-ended CII as of 31.07.2015 constituted UAH 60.25 mln. According to the indicators at the end of the previous month, the overall decrease in net assets amounted to UAH -1058.52 thsd. (-1.79%). The total net outflow from funds in the sector amounted to  -UAH 766.76 thsd. due to rather significant payments to investors.

Sector’s funds finished the month mostly with a decrease in portfolios’ profitability, only 8 funds showed an increase. In July, a range of rates of return of open-ended CII was from +2.08% to -4.02%.

Based on JULY results, the leaders of growth in the sector of open-ended CII were:
“VSI" (+UAH 36.08 thsd. (+2.54%)) - due to additional placement of certificates (increase in circulation by 2.23%) received a net inflow in the amount of UAH 30.75 thsd.;
"Argentum" (-UAH 70.71 thsd. (-3.98%)) - despite the negative revaluation of the investment portfolio’s components, through additional attraction of investors’ funds (+ 0.04% in circulation) received UAH 0.36 thsd of net inflow.

The greatest payments to investors in July were made by the following funds:
  
"UNIVER.UA/Myhailo Grushevskyi: Fond Derzhavnyh Paperiv" (-UAH 327.86 thsd.(-8.34%)) - the largest net outflow in the amount of –UAH 371.33 thsd. associated with the purchase of a significant number of investors’ certificates (-9.43% in cirulation);
"OTP Klasychnyi" (-UAH 233.09 thsd. (-13.29%)) - net outflow amounted to –UAH 264.86 thsd. also through the purchase of a large number of investment certificates (-14.86% in circulation);
"UNIVER.UA / Taras Shevchenko: Fond Zaoshchadzen" (-UAH 68.27 thsd. (-2.43%)) - after the presentation for redemption of 58 units of investment certificates received  net outflow amounting to UAH -104.87 thsd.

List of major players in the sector in July undergone minor changes. The first place among open-end CII by market share occupied Fund "KINTO-Klasychnyi" (36.23% of total NAV (UAH 21.83 mln.)), the second place - fund "Sofiivskyi" (6.44% (UAH 3.88 mln.)). The third place went to fund "Kinto-Ekviti" (6.14% (UAH 3.69 mln.), shifting fund "UNIVER.UA/Myhailo Grushevskyi: Fond Derzhavnyh Paperiv"  (5.98% (UAH 3.60 mln.)) to the fourth place. At the honorable fifth place Fund "Premium-Fond Indeksnyi" located (5.34% (UAH 3.22 mln.)).

Among the leaders by the rates of return should be noted the following funds: “Altus-Zbalansovanyi” (+2.08%), “Altus-Deposyt” (+2.07%) and "OTP Klasychnyi" (+1.84%).

The worst performance in July was demonstrated by the following funds: ‘Argentum” (-4.02%), “Bonum Opimum” (-3.54%) and “UNIVER.UA/Yaroslav Mudryi: Fond Aktsii” (-3.14%).

INTERVAL FUNDS

In July the review included 6 interval CII, which net assets, according to UAIB data, equaled UAH 16.68 mln. Compared with the sector’s indicators at the end of the previous month, an aggregate NAV decreased by -UAH 817.99 thsd. (-4.68%).

In July, no fund was able to raise investors’ funds, the whole sector suffered a general decline in NAV.

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

"Platynum" (-UAH 734.41 thsd. (-6.36%)) - investors presented to redemption 1168 units of securities (-3.46% in circulation), which led to a net outflow of capital in the amount of –UAH 397.92 thsd.;
"TASK Ukrainskyi Kapital" (-UAH 23.21 thsd. (-1.67%)) - as well through small payments to investors received a net outflow in the amount of –UAH 0.47 thsd.

The remaining funds did not record any change in net capital.

The range of yield of interval funds in July varied between -0.64% to -3.00%.

The worst performance was demonstrated by funds: "Platynum" (-3.00%), "UNIVER.UA/ Otaman: Fond Perspectyvnyh Aktsii" (-1.93%) and "Aurum" (-1.67%).

CLOSED-END FUNDS

Net asset value of 4 closed-end CII, which were included in July review, at the end of the month comprised UAH 12.34 mln. According to the filed indicators, the aggregate NAV of these funds decreased by UAH -12.00 thsd. (-0.10%).

The leader of growth in the sector was the fund "Indeks Ukrainskoi Birzhi" (+UAH 37.47 thsd.  (+0.64%)) - due to additional placement of securities (increase in circulation by 5.34%) received a net inflow in the amount of UAH 298.18 thsd.

No other fund recorded any change in net equity.

Range of rates of return of closed-end funds in July fluctuated between -0.37% to -4.46%.

The worst performance in July was demonstrated by funds:
"Indeks Ukrainskoi Birzhi" (-4.46%), "TASK Universal" (-1.41%) and "UNIVER.UA/Skif: Fond Nerukhomosti" (-1.25%)