Dear Investors,
We invite you to review the market overview and the performance of OTP Capital’s mutual investment funds in November 2024.GENERAL ECONOMIC SITUATION IN UKRAINE
In November, inflation continued to rise, reaching 9.3% year-over-year, driven by higher food prices, electricity costs, and wage increases. This prompted the National Bank of Ukraine (NBU) to revise its year-end forecast to 9.7%. Despite these adjustments, the NBU decided to maintain its key policy rate at 13%.
The official exchange rate of the hryvnia weakened from UAH 41.23/USD to UAH 41.62/USD, while the cash rate increased from UAH 41.54/USD to UAH 41.91/USD, reflecting moderate depreciation in the currency market.
Hryvnia Investments
Demand for hryvnia-denominated government bonds (OVDPs) remained stable, with the following yields:
- 15.2% for bonds maturing in up to 1.4 years
- 16.2% for bonds maturing in up to 2.4 years
- 16.8% for bonds maturing in up to 3.2 years
Deposit rates in November ranged from 8% to 12.5% in hryvnia and up to 2% in dollars, depending on the placement period.
Foreign Currency Investments
OVDPs: Yields on foreign currency-denominated OVDPs remained steady at 4.6%-4.7% for dollar-denominated bonds and 3.25% for euro-denominated bonds in primary auctions. On the secondary market, yields did not exceed 4.2% in dollars and 3% in euros.
Eurobonds: Demand for Eurobonds grew, supported by stable international backing for Ukraine. Quotes for new Eurobonds increased by 4-10.8%, depending on maturity, positively impacting the returns of currency-based funds.
PERFORMANCE OF FUNDS MANAGED BY OTP CAPITAL
OTP Classic
In November, the OTP Classic fund added OVDPs worth UAH 1.3 million to its portfolio.
- Monthly return: 1.1%
- Last 12 months: 16.1% annualized
OTP Kids
The OTP Kids fund sold OVDPs worth UAH 15.1 million and reinvested UAH 16.2 million into OVDPs with higher yields.
- Monthly return: 3.3%
- Last 12 months: 20.8% annualized
OTP Valutnyi Fund
No portfolio transactions were made in November.
- Growth in Eurobond prices allowed the OTP Currency Fund to deliver a monthly return of 5.7%.
- Last 12 months: 27.2% annualized in USD
OTP Equity Fund
In November, the OTP Equity Fund reallocated funds to short-term deposits at maximum rates, placing UAH 1 million each in Ukreximbank, Ukrgasbank, and Tascombank.
Demand for Raiffeisen Bank shares remained sluggish, with no price changes during the month.
- Monthly return: 0.6%
- Last 12 months: 21.5% annualized
CONCLUSION
November 2024 demonstrated growth in Ukraine’s investment market, despite heightened economic risks. Inflation forecasts and a stable exchange rate supported interest in hryvnia and foreign currency instruments, enabling OTP Capital funds to generate positive returns.
OTP Capital continues to ensure stable capital growth for its investors by leveraging the best opportunities in the market.
