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

Despite the positive developments in the country (close cooperation with NATO and the UN, launching of new patrol and inspection service to replace militia, successful negotiations with the Club of creditors, etc.), the fall in world indices because of the crisis in China is not inspiring for players, so in the last quarter the Ukrainian stock market was in a downtrend.

Stock exchanges closed mixed in August, the index of Ukrainian Stock Exchange for the month rose by 0.42%, but the PFTS index fell by 2.13%. However, despite the negative profitability, the sector of closed-end CII managed to attract funds from investors. Foremost, the demand was focused on the oriented on the "blue chips" funds.

Open-ended investment funds continued to top the list in terms of return "YTD" with a value of +7.38% (+0.42% in August), interval funds took the second place (-1.53% (-0.29% for the month)), sector of open-ended CII remained in third place with an indicator -5.28% (+0.12%).

OPEN- ENDED FUNDS

As per UAIB data, the NAV of 21 open-ended CII as of 31.08.2015 constituted UAH 58.88 mln. According to the indicators at the end of the previous month, the overall increase in net assets amounted to UAH +77.70 thsd. (+0.14%). The total net outflow from funds in the sector amounted to -UAH 175.91 thsd. due to rather significant payments to investors in certain funds.

Sector’s funds finished the month mostly with a decrease of profitability, only 8 funds showed an increase. In August, a range of rates of return of open-ended CII varied from +1.64% to -2.52%.

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

"UNIVER.UA/Myhailo Grushevskyi: Fond Derzhavnyh Paperiv" (+UAH 157.55 thsd. (+4.37%)) –
due to additional placement of 46 certificates (increase in circulation by 2.69%) received a net inflow in the amount of UAH 96.43 thsd.;

«VSI» (+UAH 68.69 thsd. (+4.71%)) – due to increase in the value of the investment portfolio’s components and through additional attraction of investors’ funds (+ 4.49% in circulation) received UAH 65.05 thsd. of net inflow.

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

"OTP Klasychnyi" (-UAH 231.01 thsd. (-15.09%)) – the largest net outflow in the amount of –UAH 251.52 thsd. associated with the purchase of a significant number of investors’ certificates (-16.51% in circulation);

“КІNТО-Klasychnyi" (+UAH 42.72 thsd. (+0.20%)) – despite the positive revaluation of the fund’s assets, the net outflow was -UAH 71.70 thsd. due to redemption of 172 units of investment certificates of fund participants;

“Аrgentum” (-UAH 14.04 thsd. (-0.82%)) – due to presenting for redemption of 392 units of investment certificates suffered net outflow in the amount of –UAH 12. 93 thsd.

List of major players of the sector undergone minor changes in August. The first place among open-ended CII by market share occupied "KINTO-Klasychnyi" Fund (37.15% of total NAV (UAH 21.87 mln.)), the second place - "Sofiivskyi" Fund (6.50% (UAH 3.83 mln.)). The third place went to Fund "UNIVER.UA/Myhailo Grushevskyi: Fond Derzhavnyh Paperiv" (6.39% (UAH 3.76 mln.), shifting "Kinto-Ekviti" Fund (6.29% (UAH 3.71mln.)) to the fourth place. At the fifth place Fund "Premium-Fond Indeksnyi" was located (5.49% (UAH 3.23 mln.)).

Among the leaders by the rates of return should be noted the following funds: "UNIVER.UA/Myhailo Grushevskyi: Fond Derzhavnyh Paperiv" (+1.64%), "OTP Klasychnyi" (+1.58%) and “SEM Azhio” (+1.46%).

The following funds demonstrated the worst indicators of changes in the value of their securities in August: “Nadbannia” (-2.52%),"Sofiivskyi" (-1.30%) and "Argentum" (-0.07%).

INTERVAL FUNDS

In August the review included 6 interval CII, which net assets, according to UAIB data, equaled UAH 16.54 mln. Compared with this sector’s indicators at the end of the previous month, an aggregate NAV of funds decreasedby -UAH 34.77thsd. (-0.81%).

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

The largest payment to investors in August was made by “Aurum” Fund (-UAH 31.91 thsd. (-1.61%)) – investors presented for redemption 25 units of securities (-0.04% in circulation), that led to net outflow in the amount of -UAH 0.86 thsd.

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

The range of yield of interval funds in August varied between +0.55% до -1.56%.

Among the leaders by the rates of return should be noted the following funds:
"TASK Ukrainskyi Kapital" (+0.55%), "Optimum" (+0.51%) and "UNIVER.UA/Otaman: Fond Perspectyvnyh Aktsii" (+0.10%).

The following funds demonstrated the worst indicators of changes in the value of their securities: “Aurum” (-1.56%), “Platynum” (-1.02%) and “Zbalansovanyi Fond “Parytet” (-0.33%).

CLOSED-END FUNDS

Net asset value of 4 closed-end CII, which were included in August review, at the end of the month comprised UAH 12.39 mln. According to the filed indicators, the aggregate NAV of these funds increased by UAH 52.33 thsd. (+0.42%).

No other fund recorded any change in net equity.

Range of rates of return of closed-end funds in August fluctuated between +1.59% до -1.58%.

Among the leaders by the rates of return should be noted the following funds: "UNIVER.UA/Skif: Fond Nerukhomosti" (+1.59%) and "Indeks Ukrainskoi Birzhi" (+1.19%).

The following funds demonstrated the worst indicators of changes in the value of their securities in August: "TASK Universal" (-1.58%), and "AntyBank" (-0.71%).