The Best Return Last Week Achieved by KD Victoria

Last week, 58 percent of funds (49 of them) recorded an increase in value (from +0.00 to +4.64 percent on a weekly basis), while the remaining 42 percent of funds (35 of them) experienced a decline (from -2.38 to -0.01 percent).

According to the report from iCapital, among equity funds, the best weekly return was achieved by KD Victoria (+4.64 percent), FIMA Equity (+3.73 percent), and A1 (+2.88 percent). Looking at the results for this year, the leading equity funds are Erste Adriatic Equity with an increase of +10.13 percent, HPB Equity (+10.02 percent), and A1 (+9.86 percent). When comparing funds according to RARR, the best equity funds in 2013 are: A1, Allianz Equity, and PBZ Equity.

Bond funds lost value on a weekly basis, except for one: ZB bond (+0.41 percent). HI-conservative (-0.09 percent) and Raiffeisen Bonds (-0.09 percent) had the smallest losses in value. Since the beginning of the year, the situation among bond funds is as follows: Erste Bond (+0.36 percent), followed by PBZ Bond (+0.30 percent) and HI-conservative (+0.27 percent). When comparing funds according to RARR, the best bond funds in 2013 are: HI-conservative, Erste Bond, PBZ Bond.
Among mixed funds, the best weekly return was achieved by: C-Premium (+2.31 percent), OTP Balanced with +1.46 percent next, and Allianz Portfolio with +1.09 percent. According to returns this year, the top three mixed funds achieved the following returns: C-Premium (+9.18 percent), OTP Balanced (+7.54 percent), and PBZ Global (+5.67 percent). When comparing funds according to RARR, the best mixed funds in 2013 are: C-Premium, PBZ Global, and OTP Balanced.
The most successful among money market funds on a weekly basis is Agram Euro Cash (+0.08 percent), followed by NFD Aureus Multicash (+0.06 percent) and OTP Money Fund (+0.06 percent). Among money market funds during this year (and in the last month), the best are: Agram Euro Cash (+0.44 percent), Locusta Cash (+0.33 percent), and PBZ Euro Money (+0.32 percent). When comparing funds according to RARR, the best money market funds in 2013 are: VB Cash, Auctor Cash, and HI-cash.

The weekly return of 3.28 percent was achieved by the OTP Index Fund, while VB CROBEX10 achieved 2.05 percent. Since the beginning of the year, VB CROBEX10 has achieved +11.43 percent, while OTP Index is up 12.05 percent.

Global Markets At the beginning of last week, a negative sentiment prevailed in the European stock market influenced by poor results from Commerzbank. The second-largest bank in Germany by assets reported a high loss of 720 million euros in Q4 2012 compared to a net profit of 320 million euros in the same period of the previous year. The reason for this is high write-offs of deferred tax assets amounting to 560 million euros as well as the impairment of the sale of the Ukrainian bank Forum amounting to 185 million euros. Looking at the results for the entire 2012, Commerzbank still achieved a low net profit of 6 million euros, compared to 638 million euros in 2011. No better results are expected for Q1 2013, as planned costs due to staff reductions amount to around 500 million euros. Commerzbank announced last month a reduction in the number of employees by 4,000 to 6,000 by 2016 as part of the restructuring process.
After the announcement of the IPO of the Moscow Exchange (MICEX-RTS), the price range for the stock has finally been determined. The price of one share will be between 55 and 63 RUB. The Moscow Exchange is currently ranked 18th in the world by trading volume. Deutsche Bank, Credit Suisse, Sberbank CIB, and VTB Capital will participate in this IPO.
The British oil giant BP reported quarterly results, indicating that in 2012, net profit was halved to 11.85 billion USD (-54 percent). The sharp decline in profit is a result of high costs incurred due to the oil spill in the Gulf of Mexico, as well as the absence of income from the sale of a 50 percent stake in the joint venture TNK-BP.
On Wednesday, a fine was imposed on RBS for participating in manipulating Libor. The British bank must pay 612 million USD, which is half of the maximum fine of 1.5 billion USD imposed on the Swiss financial giant UBS, while Barclays must pay only 450 million USD. The U.S. government has filed a civil lawsuit against the rating agency S&P for overly positive ratings of securities in 2007, prior to the onset of the debt crisis, which later resulted in significant losses for owners.

At last week’s ECB meeting, there was a discussion about the strong appreciation of the EUR/USD exchange rate, which could negatively affect price competitiveness in exports, although a stronger EUR indicates a slight return of confidence in the eurozone and a reduction in inflationary pressure. Additionally, the European Central Bank (ECB) and the Bank of England (BoE) decided to maintain the same level of interest rates. The interest rate for the eurozone will remain at 0.75 percent.
After Commerzbank announced its Q4 2012 business results last week and reported a high loss due to significant write-offs of deferred tax assets, the rating agency S&P will review the bank’s creditworthiness in the next 3 months. Since the reorganization of Commerzbank is progressing slower than expected, a potential downgrade from the current long-term rating of A is possible.
The Israeli pharmaceutical company Teva reported its Q4 2012 business results, indicating a revenue decline to 5.25 billion dollars (-7.5 percent), primarily due to a drop in sales in North America. However, total revenues for 2012 increased to 20.32 billion USD (+11 percent), although with a decline in net profit to 1.96 billion dollars compared to 2.76 billion USD in 2011 (-29 percent), due to higher one-offs.

Domestic Market The total regular turnover on the Zagreb Stock Exchange from February 1, 2013, to February 8, 2013, amounted to 117.9 million HRK (even 75 percent higher than the previous week). According to data from the Zagreb Stock Exchange, CROBEX ended Friday at 1,961.07 points, which represents an increase of 3.23 percent compared to the previous Friday (1,899.66 points). CROBEX10 ended at 1,086.30 points (gaining 2.11 percent in value). The bond index CROBIS fell by 0.38 percent on a weekly basis, reaching a level of 103.9805, while CROBISTR (the bond index that takes into account paid or accrued interest) fell by 0.27 percent during the same period (to 123.0935).