Monthly Performance Review of Publicly Offered CII in Ukraine. January 2013

New Year has always inspired and overfilled with hopes, therefore, in January a rapid rally was characteristic of the stock trading floors around the world. All exchanges without exception started the new year with a significant growth of indexes. Such indexes as Dow Jones (+7,13%), Standard & Poor’s (+6,82%) and Shanghai Composite (+6,81%) added in value most. 
In the Ukrainian stock trading floors during the first half of January players took profits after December growth, but positive signals received from all global stock exchanges gave confidence to the bears that broke the negative tendency and started fighting for index growth.
Confident growth was registered in the national exchanges’ indicators according to January results:  UX index - +2,35%, and PFTS index – +2,39%.

OPEN-ENDED FUNDS

Based on the UAIB data, the NAV of 41 open-ended CII as of 31.01.2013 comprised  UAH 160,22 mln. Proceeding from their indicators as of the previous month end, an aggregate net asset decrease reached –UAH 54,22 thsd. (-0,03%). In January, an outflow of moneys notably decreased (in December this indicator was equal to -2,22%).
Despite positive changes that started to shape up in the second half of January, 13 funds did not succeed in exiting from the red zone, and the rest of them registered confident growth. In January, the range of the rates of return of investment funds was fairly broad and fluctuated between +37,04% and -25,54%, and an average rate of return in the sector remained at previous month level of +0,52%.

Based on January results, growth leaders in the sector of open-ended CII were:
 “Raiffeisen Money Market” (+UAH 1400,04 thsd. (+13,13%)) – due to an additional placement of 766 certificates (increase in circulation by 11,53%) generated a net inflow in amount UAH 1242,44 thsd.;
“OTP Equity Fund” (+UAH 152,15 thsd. (+2,9%) – also attracted UAH 108,04 thsd. solely by way of increasing the number of certificates in circulation by 2,04% (investors acquired 176 828 certificates);
“Argentum” (+UAH 31,87 thsd. (+1,59%)) – via an additional placement of 841 ІС generated UAH 31,9 thsd. worth of net inflow.

The greatest payments to investors in January  were made by the following funds:
 “VSE” (-UAH 621,04 thsd. (-12,88%) – the most substantial net outflow in amount UAH 631,22 thsd. in connection with a buyout of 772 certificates (-13,08% in circulation);
“KINTO-Classic” (-UAH 333,56 thsd. (-1,38%) – net outflow comprised UAH 535,23 thsd. also due to a buyout of 1 437 investment certificates (-2,21%);
“OTP Classic” (+UAH 428,93 thsd. (+0,98%) – in spite of NAV growth, as a result of presentation for buyout of 170 investment certificates, the net outflow reached UAH 244,30 thsd.
In January, the list of the key sector players remained unchanged. The first place by market share among open-ended CII went to “OTP Classic” fund  (27,72% of the aggregate NAV (UAH 44,41 mln.)), and the second one – to “KINTO-Classic” fund (14,89% (UAH 23,86 mln.)). “Raiffeisen Money Market” became third (7,53% (UAH 12,06 mln.)), and “Sparta Balanced” fund - fourth (5,72% (UAH 9,17 mln.). “OTP Equity Fund” had pride of the fifth place (3,37% (UAH 5,40 mln.)).

Among the leaders by the rates of return should be noted funds “Andromeda” (+37,04%), “Concorde Stability” (+8,28%), and “Sofiyivsky” (+5,99%).
The poorest performance results in January were demonstrated by "Citadele Ukrainian Balanced Fund"(-25,54%), “SEM Azhio” (-11,55%), and  "UNIVER.UA/Yaroslav The Wise - Equities Fund" (-7,64%).

INTERVAL FUNDS

January review covers 12 interval CII, whose net assets, according to the UAIB data, reached UAH 43,25 mln. Compared to this sector’s indicators as of preceding month end, the aggregate NAV grew by UAH 490,07 thsd. (+2,08%).
During the first month of the year the sector registered a capital outflow owing to significant payments to investors.

In January, growth leaders in the sector of interval CII were:
 “Aurum” (+UAH 26,86 thsd. (+1,19%)) – owing to asset revaluation and moneys attracted from investors (243 securities (+0,43%)) generated net inflow in amount UAH 9,43 thsd.;
“Orion” (+UAH 397,36 thsd. (+18,27%)) – increased NAV due to asset revaluation, although no net inflow was generated;
“OTP Balanced” (+UAH 21,10 thsd. (+1,21%)) – the fund’s NAV also grew due to asset revaluation, though no net inflow was generated.

The greatest losses of net assets in January  were experienced by the following funds:
“Platinum” (+UAH 172,60 thsd. (+1,45%) – despite NAV growth, as result of 1 575 securities being presented for buyout, net outflow comprised –UAH 426,47 thsd;
The range of interval funds’ rates of return in January was also rather broad and fluctuated between +18,27% and -14,01%. Interval funds’ sector average rate of return was in the green zone for the second month in a row and comprised +1,03%.
Only four funds registered negative results in January, whilst the rest of the funds confidently used growth of quotations, with most substantial growth registered in funds “Orion” (+18,27%), “Platinum” (+5,21%), and “OTP Balanced” (+1,21%).

CLOSED-END FUNDS

January review covers 11 closed-end CII whose net asset value as of month end comprised UAH 35,73 mln. Based on the indicators provided, an aggregate NAV of these funds increased by UAH 183,17 thsd. (+9,46%). Already for a half a year in a row the closed-end funds’ sector demonstrates the best result by NAV growth.

Sector growth leaders were:
 “Pershyi Zolotyi” (+UAH 202,66 thsd. (+2,61%)) – due to an additional placement of 489 securities (+1,72% in circulation) generated UAH 134,47 thsd. worth of net inflow;
“Centavr” (+UAH 129,71 thsd. (+7,57%)) – as a result of asset revaluation generated no net inflow.

The greatest losses of net assets in January were experienced by "Raiffaisen Foreign Currency" fund (-UAH 209,90 thsd. (-1,44%)), as due to 350 shares presented for buyout the net capital outflow reached UAH 295,17 thsd. 
The rest of the funds broke even as a result of asset revaluation, without either losses or net capital inflow.
The range of closed-end funds’ rates of return in January fluctuated between
+7,57% and  -3,63%. An average rate of return of the closed-end funds’ sector according to monthly result reached +2,39% (December: +1,94%), which proved to be the best monthly performance result in the market.
In January, one fund registered negative performance, and the rest of the funds managed to demonstrate positive growth dynamics.
The best results by the rates of return earned were demonstrated by funds “Centavr” (+7,54%), "UNIVER.UA/SKIF-Real Estate Fund" (+6,79%), and “OTP Dynamic” (+3,13%).
Negative performance was registered in “AntiBank” fund (-3,63%).