Dear Participants of the “OTP Pension” and “FreeFlight” Pension Funds!
We are pleased to present the results of OTP Capital’s non-state pension funds for October 2024.GENERAL ECONOMIC SITUATION IN UKRAINE
In October, the National Bank of Ukraine maintained its key interest rate at 13%. Annual inflation rose to 8.6%, driven by higher prices for food, electricity, and wages. Despite this, the NBU made no changes to its monetary policy, keeping key rates unchanged.
The official exchange rate of the hryvnia slightly weakened from 41.17 UAH/USD to 41.23 UAH/USD, while the cash rate remained stable at 41.54 UAH/USD.
HRYVNIA INVESTMENTS
Demand for hryvnia-denominated government bonds (OVDPs) remained high, with yields as follows:
- 14.65% – OVDPs with a maturity of up to 1 year
- 15.25% – OVDPs with a maturity of up to 1.5 years
- 16.25% – OVDPs with a maturity of up to 2.5 years
- 16.8% – OVDPs with a maturity of up to 3.2 years
Deposit rates in October ranged from 8% to 12.5% for hryvnia deposits and up to 2% for dollar deposits, depending on the deposit term.
FOREIGN CURRENCY INVESTMENTS
Government Bonds (OVDPs):
Yields on foreign currency OVDPs in October remained 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 Ukrainian Eurobonds increased amid continued support for Ukraine from its allies. Quotes for new Eurobonds rose from 4% to 10.8% depending on the maturity, positively impacting fund returns.
RESULTS OF NON-STATE PENSION FUNDS
OTP PENSION
Fund Portfolio
In October, the “OTP Pension” fund sold government bonds (OVDPs) worth UAH 26.2 million, replacing them with OVDPs worth UAH 383 million offering better yields. In the deposit segment, UAH 12 million was placed with TAScombank.
Financial Results
- Fund assets increased by UAH 15.5 million (↑2.5%)
- Total NAV at the end of the month reached UAH 609.3 million
- Contributions amounted to UAH 6.1 million, while pension payouts totaled UAH 1.0 million
Performance
In September, “OTP Pension” generated the following returns for its participants:
- 1.7% monthly return
- 16.3% annualized return over the past 365 days
FREEFLIGHT
Fund Portfolio
The “FreeFlight” fund actively rebalanced its portfolio, leveraging arbitrage opportunities in short-term dollar-denominated OVDPs on the secondary market. A deposit of USD 20,000 was placed with Creditwest Bank.
Financial Results
- Fund assets grew by over UAH 2.3 million (↑4.1%)
- Total NAV at the end of the month reached UAH 55.9 million
- Contributions exceeded UAH 1.1 million, with pension payouts totaling UAH 110,300
Performance
The fund’s growth was driven by the capitalization of investments in Eurobonds following their restructuring and active portfolio rebalancing, resulting in:
- 2.1% monthly return in USD
- 9.3% annualized return over the past 365 days in USD
Stay updated with the latest financial news with us!
