Dear participants of “OTP Pension” and “FreeFlight”!
We invite you to review the performance results of the non-state pension 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.
NON-STATE PENSION FUNDS PERFORMANCE
OTP Pension
Fund Portfolio
The fund sold OVDPs worth UAH 16 million and acquired new OVDPs worth UAH 17.5 million with better yields. In the deposit segment, funds were allocated as follows: UAH 15 million in Agroprosperis Bank, UAH 1.1 million in Sense Bank, UAH 7.7 million in Ukreximbank, and UAH 16.5 million in Oschadbank.
Financial Results
- The fund’s assets increased by UAH 10.2 million (+1.7%).
- The total net asset value (NAV) at the end of the month was UAH 593.8 million.
- Contributions amounted to UAH 6.7 million, while pension payments totaled UAH 1.0 million.
Returns
In September, “OTP Pension” generated the following returns for its participants:
- Monthly return: 0.9%
- 12-month return: 16.3% annually
FreeFlight
Fund Portfolio
The “FreeFlight” fund actively rebalanced its portfolio, utilizing arbitrage opportunities in short-term OVDPs denominated in dollars on the secondary market. Deposits were placed as follows: $44,000 in PUMB and $33,000 in Creditwest Bank.
Financial Results
- The fund’s assets grew by UAH 1.6 million (+3.0%).
- The total NAV at the end of the month was UAH 53.6 million.
- Contributions exceeded UAH 1.0 million, while pension payments amounted to UAH 33,000.
Returns
The increase in capitalization of Eurobond investments following their restructuring, combined with active portfolio rebalancing, helped the fund achieve:
- 1.4% monthly return in dollars
- 4% annual return in dollars over the past 12 months
Thank you for your trust, and we wish you successful investments!
