On June, 15th, 2011, RA ‘Expert Rating’ has confirmed infrastructure stability rating of Asset Management Company Private Joint-Stock Company ‘KINTO’ (USREOU code 16461855) following the results of 2010 at the level uaАА.amc (very high stability level). Confirming the rating, the Agency was guided by the results of work of Joint-Stock Company KINTO in Q1 2011.

In the Q1 2011 the Company KINTO was affected by the following tendencies:
1. The volume of net assets under control of AMC KINTO dropped from UAH 555,7m as of
the beginning of Q 2 2010 to 533,14 m UAH at the start of Q2 2011. Rate of decrease in net assets
under management has made 4,06 %, and in public funds - 2,19 %. The drop of net assets value was
of market nature, the number of public funds under AMC management grew. If as of 01.04.2010
there were 16 funds under KINTO management, already on 01.04.2011 this number become 21.
Thus, by Agency estimate, AMC effectively resisted the market tendencies by increasing the range
of funds available to investors. Such strategy should affect well the market share of the Company in
the market of public funds at renewed growth in stock market.
2. Share of NPFs gradually grew in the structure of net assets under control of KINTO. As of
01.04.2011 the share of NPF in the net assets of KINTO funds made 4,7 %, 12 months ago - 3,81 %.
On 01.04.2011 net assets of NPF under control of KINTO has reached UAH 25 m, growth rate in 12
months was 18,58 %. The Agency positively estimates the operations of KINTO in the market of
NPFs. Here the Company performs long-term strategy aimed on expansion of its presence in this
market on the eve of eventual Pension reform.
3. The Q1 2011 again was unprofitable for KINTO. Company loss was UAH 1,593 m, that is
almost twice as less, than for the same period of 2010. KINTO continued unprofitable work for the
third year in row, in the Q1 2011 the loss ratio reduced almost in 2 times. According to the Agency,
the unprofitable work of AMC did not bear in itself threats for stability of work of the Company due
to insignificant size of losses. KINTO still was overcapitalized as of Q2 beginning: on 01.04.2011 the
own capital of the Company made UAH 81,8 m.
4. Following Q1 results among 16 KINTO funds monitored by RA Expert Rating only 3 funds
have shown negative profitableness, and at three other funds the annual equivalent of profitableness
essentially exceeded bank deposit rates: CIF ‘Synergy 5’ (+28,95 %), UIF ‘KINTO-SUMMER’
(+30,32 %), UIF ‘KINTO-AUTUMN\ (+37,56 %). Profitableness of funds for 12 months from
01.04.2010 to 01.04.2011 looked not too attractive, on the average the funds have shown + 4,35 %
per annum. According to Agency, such state of affairs was quite corresponding to the dynamics of
key benchmarks.

Analytical service of RA Expert-Rating

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