Dear Investors,
We invite you to review the results of the non-state pension funds managed by OTP Capital for August 2024.
GENERAL ECONOMIC SITUATION IN UKRAINE
Last month, the Ukrainian financial market continued to demonstrate stability despite the economic challenges.
The official exchange rate of the hryvnia slightly strengthened from 41.12 UAH/USD to 41.03 UAH/USD, while the cash rate remained almost unchanged at 41.45 UAH/USD.
Hryvnia Investments
Interest rates on government bonds (OVDP) at primary auctions, denominated in hryvnia, remained stable throughout August:
- 14.6% for OVDP with a term of up to 1 year
- 15.4% for OVDP with a term of up to 2 years
- 16.5% for OVDP with a term of up to 3 years
Interest rates on term deposits found their equilibrium at 8%-12.5%, indicating stability in the bank deposit sector.
Foreign Currency Investments
⇒ OVDP: The Ministry of Finance did not issue foreign currency-denominated OVDPs in August. On the secondary market, yields on foreign currency OVDPs remained at 4% for dollar-denominated bonds and 2.75% for euro-denominated bonds. These figures reflect the relative stability in demand for Ukrainian eurobonds.
⇒ Eurobonds (OZDP): In August, the Ministry of Finance of Ukraine successfully restructured the country’s external sovereign bonds (OZDP). The government received support from over 97% of eurobond holders, reducing the national debt by $11.4 billion. This was achieved through a nominal write-down, reduced coupon payments, and an extension of debt maturity from 2024-2035 to 2029-2036.
As a result, eurobond prices rose from 1.5% to 6% in early August, positively impacting foreign currency investments. However, by the 28th, OZDPs were frozen in clearing systems pending an exchange that will conclude in early September.
NON-STATE PENSION FUNDS RESULTS
OTP Pension Fund
Portfolio Overview
The OTP Pension fund sold OVDPs worth UAH 35.4 million and purchased OVDPs worth UAH 47.8 million with higher yields. In terms of deposits, UAH 5.5 million was placed in Agroprosperis Bank, UAH 43.5 million in Sense Bank, and UAH 31.8 million in Creditvest Bank.
Financial Results
- Fund assets increased by UAH 10.3 million (1.8%)
- Total NAV at the end of the month stands at UAH 583.6 million
- UAH 5.9 million in contributions and UAH 1.1 million in pension payments were made
Returns
In August, OTP Pension provided its participants with:
- A 1% return for the month
- A 16.8% annual return over the past 365 days
FreeFlight Fund
Portfolio Overview
The FreeFlight fund actively rebalanced its portfolio, taking advantage of arbitrage in short-term OVDPs denominated in dollars on the secondary market. Deposits were placed in the following banks: USD 47,000 in Sense Bank, USD 21,000 in Agroprosperis Bank, and UAH 810,000 in Ukrgasbank.
Financial Results
- Fund assets grew by more than UAH 2.0 million (3.9%)
- Total NAV at the end of the month stands at UAH 51.9 million
- Over UAH 1.0 million in contributions and UAH 13,200 in pension payments were made
Returns
The rise in OZDP prices in August and active portfolio rebalancing helped the fund achieve:
- A 1.6% return in dollars for the month
- A 3.5% annual return in dollars over the past 365 days
Thank you for your trust, and we wish you successful investments!
