Dear Investors,
We invite you to review the performance results of OTP Capital mutual 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.
PERFORMANCE OF OTP CAPITAL FUNDS
OTP Classic
In October, OTP Classic sold government bonds worth UAH 3.2 million and purchased new ones worth UAH 3.9 million at better yields. In the deposit segment, UAH 3 million was placed with TAScombank.
The fund generated a monthly return of 1.4% for its participants, with an annualized return of 16.3% over the past 365 days.
OTP Kids
In October, OTP Kids added government bonds worth UAH 1.6 million to its portfolio. The fund achieved a monthly return of 1.7%, with an annualized return of 18.5% over the past 365 days.
OTP Valutnyi Fund
The fund purchased government bonds worth USD 70,200. The rise in Eurobond values helped OTP Currency Fund generate a monthly return of 3.2%. The fund’s annualized return over the past 365 days was 21.9% in USD.
OTP Equity Fund
The fund actively reinvested in short-term deposits with high rates across several banks. Deposits were reallocated as follows:
- UAH 1 million with Ukreximbank
- UAH 1 million with Ukrgasbank
- UAH 1 million with TAScombank
Strong demand for Raiffeisen Bank shares in October led to a 36% price increase, enabling OTP Equity Fund to achieve a monthly return of 4.8% and an annualized return of 23% over the past 365 days.
CONCLUSION
October 2024 showcased stability and growth in the Ukrainian investment market. The unchanged key rate of the NBU and a stable hryvnia exchange rate created favorable conditions for both hryvnia and foreign currency instruments. High demand for government bonds allowed OTP Capital funds to enhance their returns in line with the best rates on the market.
OTP Capital continues to refine its investment strategies, adapting to economic conditions to ensure stable and profitable capital growth for its investors.
Choose reliable investments with OTP Capital!
