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

Stock markets closed in September with a noticeable drop in the indices. All month the market was under the pressure of negative news - the general fall in world stock exchanges and the "cleansing" of the domestic market (51 cases against price manipulation and plans for redemption of leading stock exchanges’ shares PFTS and UX from the Russian shareholders).

For the month Ukrainian Stock Exchange index fell by 10.96%, while the PFTS index - by 8.97%.

Open-ended investment funds continued to top the list in terms of return "YTD" with a value of +19.51% (-2.53% for September), closed-end funds took the second place (+9.08% (-6.09% for the month)), sector of interval CII turned at the third place with an indicator +1.98% (-5.23% for September).

OPEN- ENDED FUNDS

As per UAIB data, the NAV of 24 open-ended CII as of 30.09.2015 constituted UAH 59.33 mln. According to the indicators at the end of the previous month, the overall decrease in net assets’ value was UAH -1,691.73 thsd. (-2.87%). The total net outflow in the sector amounted to -UAH 519.80 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 September a range of open-ended CIIs’ rates of return varied from +1.77% to -12.10%.

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

“VSI” (+UAH 51.21 thsd. (+3.36%)) – due to additional placement of 28 certificates (increase in circulation by 1.82%) received a net inflow in the amount of UAH 28.56 thsd.;

"KINTO-Kaznacheiskyi"(-UAH 44.58 thsd. (-2.19%)) – despite decrease in the value of investment portfolio‘s components, additional attraction of investors’ funds (+0.14% in circulation) allowed to receive a net inflow in the amount of UAH 2.96 thsd.

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

"OTP Klasychnyi" (-UAH 219.81 thsd. (-17.04%)) – the largest net outflow in the amount of
-UAH 240.33 thsd. associated with the redemption of a significant number of certificates from investors (-18.49% in circulation);

“UNIVER.UA/Iaroslav Mudryi: Fond Aktsii” (-UAH 154.02 thsd. (-16.04%)) - negative revaluation of NAV and redemption of 136 investment certificates from fund participants led to a capital outflow in the amount of -UAH 89.28 thsd.;

“UNIVER.UA/Taras Shevchenko: Fond Zaoshchadzhen” (-UAH 46.37 thsd. (-1.68%)) - due to presenting for redemption of 34 units of investment certificates suffered the net outflow in the amount of –UAH 62.80 thsd.

There were significant changes in the list of the major sector’s players in September. The first place among open-ended CII by market share was occupied by “KINTO-Klasychnyi” fund (36.32% of total NAV (UAH 21.55 mln.), the second place – by "UNIVER.UA/Myhailo Grushevskyi: Fond Derzhavnyh Paperiv" (6.40% (UAH 3.79 mln.)). The third place went to "Kinto-Ekviti" fund (5.98% (UAH 3.76 mln.), shifting “Sofiivskyi” fund (5.93% (UAH 3.52 mln.) to the fourth place. "Premium-Fond Indeksnyi" was located at the fifth place (5.42% (UAH 3.22 mln.)).

The following funds should be noted among the leaders by the rates of return: "OTP Klasychnyi" (+1.77%), VSI (+1.50%) and “OTP Obligatsiinyi” (+1.42%).

The following funds demonstrated the worst indicators of changes in the value of their securities in September: "Argentum" (-12.10%), "Sofiivskyi" (-8.13%) and “UNIVER.UA/Iaroslav Mudryi: Fond Aktsii”
(-7.52).

INTERVAL FUNDS

In September the review included 7 interval CII, which net assets, according to UAIB data, equaled to UAH 15.87 mln. Compared with this sector’s indicators at the end of the previous month, an aggregate NAV of funds decreased by -UAH 1,036.85 thsd. (-6.27%).

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

The largest payments to investors in September were made by “Zbalansovanyi Fond Parytet” (-UAH 46.46 thsd. (-4.26%)) – investors presented for redemption 11 securities (-1.38% in circulation), that led to net outflow in the amount of -UAH 15.17 thsd.

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

The range of interval funds’ rates of return was in September from -0.94% to -9.09%.

The worst indicators of changes in the value of their securities were demonstrated by the following funds: “Aurum” (-9.09%), “UNIVER.UA/Otaman: Fond Perspectyvnyh Aktsii” (-6.52%) and “Platynum” (-6.34%).

CLOSED-END FUNDS

Net asset value of 4 closed-end CII, which were included in September review, at the end of the month comprised UAH 11.853 mln. According to the filed indicators, the aggregate NAV of these funds decreasedby -UAH 534.93 thsd. (-4.32%).

According to the September’s results, the leader in raising funds from investors was “Indeks Ukrainskoi Birzhi” (- UAH 266.93 thsd. (-4.47%)) - due to additional placement of 13,865 equities (increase in circulation by 7.93%) it received net inflow in the amount of UAH 440.07 thsd.

No other fund recorded any changes in net equity.

Range of closed-end funds’ rates of return in September fluctuated in the interval from -1.71% to -11.49%.

The worst indicators of changes in the value of their securities were demonstrated in September by the following funds: “Indeks Ukrainskoi Birzhi” (-11.49%), “UNIVER.UA/Skif: Fond Neruhomosti” (-7.96%) and “AntyBank” (-3.21%).