Dear Participants of the “OTP Pension” and “FreeFlight” Pension Funds!
We are pleased to present the performance results of OTP Capital’s non-state pension funds for November 2024.GENERAL ECONOMIC SITUATION IN UKRAINE
In November, inflation continued to rise, reaching 9.3% annually due to higher food prices, electricity costs, and wages. This prompted the National Bank of Ukraine (NBU) to revise its year-end forecast upward to 9.7%. However, the NBU decided to keep the key policy rate unchanged at 13%.
The official exchange rate of the hryvnia weakened from 41.23 UAH/USD to 41.62 UAH/USD, while the cash rate rose from 41.54 UAH/USD to 41.91 UAH/USD, reflecting moderate devaluation in the currency market.
HRYVNIA INVESTMENTS
Demand for hryvnia-denominated government bonds (OVDPs) remained stable, with the following yields:
- 15.2% for OVDPs with maturities up to 1.4 years
- 16.2% for OVDPs with maturities up to 2.4 years
- 16.8% for OVDPs with maturities up to 3.2 years
Deposit rates in November ranged from 8% to 12.5% in hryvnia and up to 2% in US dollars, depending on the deposit term.
FOREIGN CURRENCY INVESTMENTS
- OVDPs: Yields on foreign currency OVDPs remained stable at 4.6%-4.7% in USD and 3.25% in EUR during primary auctions. On the secondary market, yields did not exceed 4.2% in USD and 3% in EUR.
- Eurobonds (OZDPs): Demand for Eurobonds increased due to steady international support for Ukraine. The quotations for new Eurobonds rose by 4%-10.8%, depending on maturity, positively impacting the profitability of foreign currency funds.
NON-STATE PENSION FUND RESULTS
OTP Pension
Portfolio Overview
In November, the “OTP Pension” fund sold OVDPs worth UAH 28.1 million and purchased OVDPs worth UAH 34.2 million with better yields. Deposits were placed as follows:
- UAH 11.8 million in Sense Bank
- UAH 3 million in AgriProsperis Bank
- UAH 6 million in Tascombank
Financial Results
- Fund assets increased by ↑UAH 14.7 million (2.4%)
- Total NAV at the end of the month: UAH 623.9 million
- Contributions totaled UAH 6.4 million, and pension payouts amounted to UAH 875,000
Profitability
In November, the “OTP Pension” fund generated returns for its participants:
- 1.5% monthly yield
- 16.6% annual yield over the past 365 days
FreeFlight
Portfolio Overview
In November, the “FreeFlight” fund actively rebalanced its portfolio, utilizing arbitrage opportunities in short-term USD-denominated OVDPs on the secondary market. Deposits worth UAH 620,000 were placed in Ukrgasbank.
Financial Results
- Fund assets grew by ↑UAH 2.3 million (4.1%)
- Total NAV at the end of the month: UAH 55.9 million
- Contributions exceeded UAH 1.1 million, with pension payouts of UAH 110,300
Profitability
The increase in Eurobond value and active portfolio rebalancing enabled the fund to achieve:
- 2.8% monthly yield in USD
- 11.8% annual yield in USD over the past 365 days
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