Today is the 15th anniversary of OTP Capital, and we would like to recall the key events that influenced
our company’s transformation and brought it up to the level we all know.
We entered 2022 with billions of assets under management, dozens of thousands of loyal customers, as well as with a diverse and unique range of products and services, ambitious plans for future rapid growth. Sure, it has taken some time to gain achievements and perspectives. We got through 15 years’ experience and several crises to rein the field, which today is helpful at responding promptly to “black swans” and exploiting them effectively to bring profit to our clients.
The 2008 featured a rapid start and sharp fall down
Far in the year 2007 when OTP Capital was founded, we entered the market, launching the mutual investment funds, our pioneer product. At that time, the stock market was in the most significant growth of all time. That was why we were confident in the relevancy of the asset management business and the rapid company’s growth. However, the global crisis of 2008 brought changes. Clients’ fear of investment and uncertainty disrupted our optimistic perspectives. The stock market became irrelevant, and its price growth potential went below the red. Consequently, such a tool as mutual investment funds went out of public focus.
The real estate fund and venture corporate funds endeavours at 2011
During the crisis in 2008, the Ukrainian banking system faced the debtors’ insolvency, which started a new stage of the crisis. At that point that we had to look for alternative ways of generating income for the company in order to survive. Thus, in 2011, we introduced OTP Solution, our new project that aimed at buying previously mortgaged real estate, renovated it, and gave it for rent or sold it. Under that project, the Fund bought more than 60 real estate property Ukraine-wide. Frankly speaking, it was the toughest project for us, but it help the company to stay alive and stay in the field.
However, only the income from the real estate venture fund was not enough and we started venture corporate funds management. It continued to take the biggest share at our business activity to these days and we have 7 venture funds under our management, making the total in assets of more than UAH 3 billion, and primarily dealing with the agriculture, transport, and solar energy.
Changing direction towards the long-term assets in 2014
Another U-turn occurred during the 2014 crisis. That year brought concerns to many customers. We once again experienced substantial loss at the mutual funds. The realities we faced forced us to think about the risk management to mitigate the threats to the OTP Capital business. That brought us to the new prospective which was the long-term investment and long-term assets for the management company. Consequently, the non-state pension funds have become a new trend.
OTP Group had its established non-state OTP Pension fund, so we began to promote it actively among our prospects, bringing the experience and values of European countries, where there is wise approach to the future retirement and no European rely upon the State but upon their wisdom.
We made the right choice at that challenging time. Currently, the OTP Pension fund is the largest among existing similar funds. Today, more than 63,000 future retirees entrust us their pension assets.
OTP Capital manages 3 more non-state pension funds in addition to the OTP Pension. Today, non-state pension provision has become one of the main fields of our activity.
Sharpened by a new crisis in 2022
After the 2014 crisis, we managed to gain the strength on the market and build trusting relationships with our clients. In recent years, we have significantly increased the number of investors and increased assets under our management. We also accelerated the growth of mutual investment funds. We praise ourselves that the periods of political instability and bank disruption did not influenced the trust of our clients.
Unfortunately, we are now facing another crisis that may be the most pessimistic compared to the previous ones as the life of the Nation and the sovereignty are threatened. It is irrelevant time to forecast, but, for sure, Ukraine will survive. OTP Capital, too.
Our priority task is to keep safe the assets and continue effectively in the field. We persevere the risk management 24/7 to mitigate the threats to the clients’ assets. The Finance department catches even the smallest opportunities to make profitable investments. The Marketing department, in turn, provide transparent and updated information to the clients. All team members are working to benefit the customers, thus, the company’s future.
Regardless, we look to the future optimistically. Any war does end eventually. We will win definitely. OTP Capital will come out of the crisis sharpened to break into the market again.
Ukraine will survive! OTP Capital will prosper!
