Mid-February and it is +5 outside? It is because we prepare for you the hottest results of the month!
OTP Classic – the fund’s yield in January was 1.6%.
According to the Head of Investment Activity Department, Yurii Oleksiienko, by taking advantage of the situation in which the bond yield was declining and deposit interest rates remained high, the OTP Capital Investment Department continued to rebalance the structure of OTP Classic fund’s portfolio towards the increase of deposit share. We sell bonds of the Ministry of Finance of Ukraine, and instead we place deposits. The results speak for themselves!
OTP Valutnyi – the increase in assets was 0.7% in US dollars.
OTP Valutnyi remains the best OTP Capital’s tool for currency risks hedging and continues to demonstrate significantly higher yield in US dollars in comparison to foreign-currency deposits.
OTP Equity fund has demonstrated positive dynamics in January – 1.9%.
According to the Asset Management Manager Taras Kucher, the fund has formed a fairly balanced portfolio that contains the optimal proportion of shares and deposits.
In terms of shares, the largest positions have three Ukrainian stock market representatives, namely Raiffeisen Bank Aval, Centrenergo and Ukrnafta.
Every year, Raiffeisen Bank Aval’s shares yield a sufficiently high revenue. On the other hand, Centrenergo and Ukrnafta’s shares were disappointing in 2019, showing negative or very low investment results.
However, the situation may change dramatically in 2020. Ukrnafta is very likely to settle its corporate strife with Naftogaz and the state, which will allow paying significant accumulated profits in the form of dividends and will yield profits to investors. In turn, according to Centrenergo, prospects for privatization may emerge, which will help to increase the price of the power generator.
Thus, given the above, we expect the potential yield of OTP Equity fund from 10% to 40%, depending on the implementation of the described scenarios.
