Monthly Performance Review of Publicly Offered CII in Ukraine. October 2017

In October, Ukrainian stock exchanges completed the month with growth: the UX index increased by +7.61%, the PFTS index by +2.65%.

By rates of return "from the beginning of the year" sectors of public collective investment institutions were distributed in October as follows: sector of closed-end funds became the leader

+35.38% (+5.59% for the month), the second place was taken by open-ended CII +20.16% (+2.95% for the month), and interval CII were on the third place with an indicator of +8.66% (+2.35% for the month).

OPEN- ENDED FUNDS

According to the UAIB data, value of net assets of 15 open-ended CII as at 31.10.2017 amounted to UAH68.89 mln. According to indicators as at the end of October, the total increase of NAV amounted to +UAH 2,924.15thsd. (+4.43%).

Sector’s funds completed the month mainly with increasing rates of return, only one fund recorded the negative result. Range of the open-ended CIIs’ rates of return varied from +7.59% to -0.24%.

Based on October results, the following funds were the growth leaders in the sector:

“UNIVER.UA/Myhailo Hrushevskyi: Fond Derzhavnykh Paperiv” (+UAH 1,241.88 thsd. (+23.90%)) – due to positive revaluation of portfolio’s components and significant additional placement of certificates (+22.74% in circulation) received a net inflow of capital in the amount of +UAH 1,185.75 thsd.;

"OTP Fond Aktsii" (+UAH 269.72 thsd. (+4.26%)) – due to attraction of investors' funds (+0.33% in circulation) and growth of investment portfolio received UAH 20.71 thsd. of net inflow;

“VSI” (+UAH 28.67 thsd. (+1.67%)) – received UAH 12.72 thsd. of net inflow due to attraction of investors' funds and positive revaluation of portfolio.

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

"KINTO-Klasychnyi" (+UAH 459.04 thsd. (+1.75%)) - despite positive reassessment of portfolio’s components, redemption of 105 investment certificates from the fund's members resulted in a net outflow of capital in the amount of –UAH 55.96 thsd.;

"Nadbannia" (-UAH 17.56 thsd. (-2.10%)) - the net outflow amounted to –UAH 49.12 thsd., which took place due to the ransom of great number of certificates from investors (-5.85% in circulation);

The list of major players in the sector experienced minor changes in October. The first place among open-ended CII in terms of market share was taken by the “KINTO-Klasychnyi” fund (38.78% of the total NAV (UAH 26.72 mln.)), the second place was taken by the fund “OTP Fond Aktsii” (9.59% (UAH 6.61 mln.), "UNIVER.UA/Mikhailo Hrushevskyi: Fond Derzhavnykh Paperiv" received the third place (9.34% (UAH 6.44 mln.)) and shifted fond “Sofiivskyi” to the fourth place (8.78% (UAH 6.05 mln.)), fund “KINTO-Ekviti” (6.90% (UAH 4.75 mln.)) located on the honorable fifth place.

The highest rates of return were demonstrated by the following funds:

“UNIVER.UA/Yaroslav Mudryi: Fond Aktsii (+7.58%), “Sofiivskyi” (+7.31%) and “UNIVER.UA/Volodymyr Velykyi: Fond Zbalansovanyi” (+4.93%)

The worst indicators of changes in value of its securities were demonstrated in October by fund “Bonum Optimum” (-0.24%).

INTERVAL FUNDS

In October the review included 3 interval CII, whose net assets, according to UAIB data, amounted to UAH3.22mln. In comparison with indicators of this sector as at the end of the previous month, the total NAV of funds increased by +UAH 96.02thsd. (+3.07%).

The following funds became leaders by rates of return: “TASK Ukrainskyi Kapital”(+5.48%) and “Parytet” (+2.18%);fund “Optimum” demonstrated the worst performance indicator for changes in the value of its securities (-0.62%).

CLOSED-ENDFUNDS

Net asset value of 2 closed-end CII, which were included in October survey, as at the end of the month amounted to UAH 9.42 mln. According to the provided indicators, the total NAV of these funds increased by +UAH 784.31thsd. (+9.08%).

According to the results of October, closed-end funds received increase in NAV due to positive revaluation of investment portfolio.