PRESS-RELEASE

(Translation from Russian)

Infrastructural rating of JSC «KINTO» is confirmed at the level uaAA.amc

 

May 18, 2012 RA «Expert-Rating» confirms the infrastructural rating of the asset management company Private JSC «KINTO» at the level uaAA.amc (a very high level of reliability). Confirming the rating, the Agency was based on the results of the Company’s activity in the Q1 of 2012.

Table 1

Key performance indicators of JSC «KINTO»

Indicators	1 quarter of 2012 (01.04.2012)	1 quarter of 2011 (01.04.2011)	Change, th. UAH, p.p.	Growth rate, %
Total net assets under AMC management, th. UAH	331789	533141	-201352	-37,77%
Change of net assets under AMC management for a quarter, th. UAH	-201352	-236969	+35617	+15,03%
Net assets of public funds, th. UAH	273930	475841	-201911	-42,43%
Proportion of public funds in net assets under AMC management	82,56%	89,25%	-6,69 p.p.	-
Net value of NPF assets under AMC management, th. UAH	23595	25074	-1479	-5,9%
Proportion of pension funds in the net assets under AMC management	7,11%	4,70%	+2,41 p.p.	-
Number of funds under management including NPF	20	21	-1	-
Shareholders equity, th. UAH	75097	81848	-6751	-8,25%
Shareholders equity/net assets under AMC management ratio	22,63%	15,35%	+7,28 p.p.	-
Authorized capital, th. UAH	66660	66660	0	0,00%
Revenues, th. UAH	3724	3153	+571	+18,11%
Net profit (loss), th. UAH	-1142	-1755	+613	+34,93%
ROE, %	-1,52	-2,14	+0,62 p.p.	-

Source: Company data, calculations by RA ‘Expert-Rating’

1. As of 01.04.2012 net assets under AMC management have amounted to UAH 331,789 mln that is by 37,77% less, than the same indicator on 01.04.2011. In the period from 01.04.2011 to 01.04.2012 net assets of public funds have decreased from UAH 475,841 mln down to UAH 273,93 mln, i.e. by 42,43%. But even with such a significant decrease in assets under management, JSC «KINTO» remains one of the largest companies in Ukraine. This decrease is partially related to the activity’s completion of the investment fund “Synergy-3”, which has made payments to its shareholders in the amount of UAH 49,53 mln. In the Q1 of 2012 proportion of public funds in net assets under AMC management has decreased by 6,69 p.p. in comparison with the Q1 of 2011. The reasons for decrease have become: decline of interest and activity of investors, as well as rather unfavorable conditions of work in the stock market.

2. Proportion of pension funds in net assets of AMC is growing with each new quarter. Thus, on 01.04.2012 this indicator has amounted to 7,11% that is by 2,41 p.p. more than as of 01.04.2011. At the same time, net asset value of NPF under the company’s management has amounted to UAH 23,595 mln that is only by 5,9% less than the indicator on 01.04.2011. As the analysis of the activity of JSC «KINTO» shows, despite rather unfavourable market conditions, the Company can minimize its loss from its activity of NPF management.

3. Shareholders’ equity of AMC «KINTO» has amounted to UAH 75,097 mln on 01.04.2012. Due to the decrease in net assets under AMC management the reserve of the company’s capitalization has increased by 7,28 p.p. In the Q1 of 2012 revenues of the company have amounted to UAH 3,724 mln that is by 18,11% more than the indicator of 2011. JSC «KINTO» has finished the first three months of current year with a loss of UAH 1,142 mln. Therefore, the company has managed to significantly reduce the loss from its activity, namely by 34,93% in comparison with the indicator of the Q1 of 2012. Taking into account the fact that this indicator is the result only of the Q1 of 2012, there is a possibility that in future under more favorable conditions of the domestic stock market the company will conduct profitable activity.

 Table 2

Data on the profitability of JSC “KINTO” public funds following the results of the Q1 of 2012

Fund	01.01.2012 – 01.04.2012	01.01.2011 – 01.04.2011	Net asset value as of 01.04.2012, UAH
‘Classical’ open-end diversified mutual fund	4,82%	1,80%	29 293 284,81
‘KINTO-Equity’open-end diversified mutual fund	4,22%	3,03%	5 983 011,21
‘Narodny’ interval diversified mutual fund	3,43%	3,09%	13 713 200,71
‘Dostatok’ interval diversified mutual fund	4,25%	2,75%	15 763 480,24
‘Synergy-7’ closed-end non-diversified corporative investment fund	4,74%	2,33%	7 574 582,29
‘Synergy-5’ closed-end non-diversified corporative investment fund	1,50%	6,47%	41 909 335,21
‘Synergy-4’ closed-end non-diversified corporative investment fund	2,69%	18,57%	89 838 639,97
‘Synergy-3’ closed-end non-diversified corporative investment fund*	-	-
‘KINTO-Spring’ closed-end non-diversified mutual fund	-0,11%	0,52%	836 773,93
‘KINTO-Summer’ closed-end non-diversified mutual fund	4,88%	6,75%	885 333,31
‘KINTO-Autumn’ closed-end non-diversified mutual fund	1,54%	8,18%	857 964,70
‘KINTO-Winter’ closed-end non-diversified mutual fund	3,52%	83,26%	839 542,71
‘UX index’ closed-end non-diversified mutual fund	-1,78%	-	2 683 144,47
‘Synergy Real Estate’ closed-end non-diversified corporative investment fund	-4,95%	-1,03%	22 506 117,46
‘Synergy Club’ (‘Synergy Bond’) closed-end non-diversified corporative investment fund	-34,10%	-17,36%	17 650 453,49
‘Social standard’ open-end pension fund	5,50%	-0,74%	23 572 285,63
‘Pension for all’ open-end pension fund	2,02%	0,00%	22 355,78
Total:	0,14%	7,84%	273 929 505,92

* January 25, 2012 the closed-end non-diversified corporative investment fund ‘Synergy-3’ has completed its activity. In the period from January 26 to February 6 the fund has made payments to its shareholders, which have amounted to UAH 49,53 mln (UAH 8 091,57 per each share).

Source: Data of the Company, calculations by RA «Expert-Rating»

4. The average yield of public funds under the company’s management has amounted to 0,14% in the Q1 of 2012. Following the results of the Q1 of 2012 the loss ratio of indices UX and PFTS has amounted to 3,7% and 2,7% accordingly. If we compare the yield of key Ukrainian indices with public funds of AMC «KINTO», we may make a conclusion that most of public funds under the Company’s management have worked more effectively than the stock indices. This fact is indicative in the market of collective investment institutions.

 

Analytical service of RA «Expert-Rating»

Confirmation of Private JSC «KINTO» (english version) - 18.05.2012