Dear Investors,
We present an overview of the performance of our mutual investment funds for September 2024.
GENERAL ECONOMIC SITUATION IN UKRAINE
In September, the National Bank of Ukraine continued its strategy of inflation targeting and maintaining currency stability. At the regular meeting, the key interest rate was kept at 13%, while certain aspects of monetary policy were modified to stimulate demand for government bonds (OVDPs).
The official exchange rate of the hryvnia slightly decreased from 41.03 UAH/USD to 41.17 UAH/USD, while the cash exchange rate shifted from 41.45 UAH/USD to 41.57 UAH/USD.
Hryvnia Investments
To boost the attractiveness of hryvnia instruments, the Ministry of Finance raised yields on long-term OVDPs at primary auctions:
- 14.6% for OVDPs with a maturity of up to 1 year
- 15.6% for OVDPs with a maturity of up to 2 years
- 16.6% for OVDPs with a maturity of up to 3 years
- 16.9% for OVDPs with a maturity of up to 3.5 years
Interest rates on term deposits in September decreased by 1%-1.5% in hryvnias and by 0.1%-1.5% in dollars.
Foreign Currency Investments
⇒ OVDPs: In September, yields on foreign currency-denominated government bonds (OVDPs) remained stable at primary auctions, with returns in dollars at 4.6%-4.7% annually and in euros at 3.3%. On the secondary market, OVDP yields did not exceed 4.2% in dollars and 3% in euros.
⇒ Eurobonds (OZDPs): The government of Ukraine completed the restructuring of external government bonds into new issues, reducing the country’s debt burden. The yields on the newly issued Eurobonds maturing between 2029-2036 ranged from 14% to 17% annually. This will positively impact fund returns in the coming years.
RESULTS OF FUNDS UNDER OTP CAPITAL MANAGEMENT
OTP Classic
In September, the fund sold government bonds (OVDPs) worth UAH 13.7 million and acquired new bonds worth UAH 16.4 million with higher yields. Additionally, funds were placed in deposits totaling UAH 17.5 million across several banks (Agroprosperis Bank, Oschadbank, and Sense Bank). Over the last month, the fund delivered a return of 1%, and over the past 365 days, it generated an annual return of 17%.
OTP Kids
During the reporting month, OVDPs worth UAH 390,000 were purchased. The fund earned a return of 0.6% for its participants. Over the last 365 days, the fund generated an annual return of 18.4%.
OTP Valutnyi
The fund acquired OVDPs worth $77,600. The increase in the capitalization of investments in Eurobonds after their restructuring in September helped the OTP Valutnyi fund achieve a return of 2.5%. Over the past 365 days, the fund generated an annual return of 9% in USD.
OTP Equity Fund
The fund actively reallocated investments into short-term deposits with high interest rates across several banks. Notably, deposits were re-placed in Ukreximbank for UAH 1 million, Ukrgasbank for UAH 0.9 million, Oschadbank for UAH 1 million, Sense Bank for UAH 1 million, Piraeus Bank for UAH 1 million, and Tascombank for UAH 1 million. In the reporting month, the OTP Equity Fund earned a return of 1.2%. Over the past 365 days, the fund generated an annual return of 6%.
SUMMARY
September 2024 brought stability to the investment markets, allowing OTP Capital’s funds to continue delivering moderate capital growth for investors. We remain committed to improving our investment strategies to achieve even better results.
Invest securely with OTP Capital!
