News

The company’s risk management system is like a smart home security system. It coordinates the operation of all devices, collects statistics of their operation, records the indicators, processes this information and then transmits the data to the server in order to analyze the general condition of the house and identify possible problems. OTP Capital’s risk management system operates in a similar way. The main task of the system is to prevent the occurrence of adverse events that may adversely affect the company’s performance. In the course of its activities, any company can face many risks. They can be divided into four main types: market risk, credit, operational and liquidity risk. The probability of their occurrence and the impact on the company’s activities are very different. Let’s consider each of them in more detail using our example.

On May 25, a regular investment period of the OTP Double Result Fund, which is a part of a joint product of the OTP Capital company and OTP Bank, has come to an end. You can get more details about the product and the history of its creation in the previous news release. This year, the fund has traditionally shown significant results of activities, having brought around 17% per annum to its investors. The important advantage of this fund is that the income is paid in the form of dividends that is why it is taxable at a considerably low rate of the personal income tax: 9% instead of 18%. Such tax advantage permits to increase the net returns of an investment. We remind you that the deposit part of the “Double Result” contribution brought 15% per annum to our clients last year. You can get more details about the product, historic returns and investment environment on the page of the fund.

Not long ago, the assets of the OTP Pension Fund, the owner and the asset management company of which is OTP Capital, has risen beyond 200 million hryvnias. The Fund is one of the four largest non-state pension funds of Ukraine. Ahead there are two large corporate funds that belong to the National Bank of Ukraine and Ukreximbank the members of which may only be the employees of these institutions. As regards public funds, the members of which may be any and all persons interested in storing up money for accumulating another non-state pension, OTP Pension can only be compared to the public pension fund “Privat Fund” the assets of which have also risen beyond UAH 200 mln recently. At the same time, OTP Pension is the fund with the best growth dynamics. For the last 5 years our assets have increased by more than fifteen times - from 13 to 200 million hryvnias, the number of members has increased by five times - from 9 to 50 thousand, and the returns on assets for this period is approximately 130%.

At the end of May, for the ninth year in a row, OTP Capital together with OTP Bank will offer their customers a compatible “hybrid” financial product. The history of the origin of such a product began in the mid-2000s. It was then that in Hungary, OTP Fund Management Hungary and OTP Bank Hungary decided to combine a regular bank deposit and an investment fund for the first time, thus creating a “dual” product. The peculiarity of the “Double Result” Deposit is the combination of two tools with different investment terms: a 3-month deposit with OTP Bank and an investment with the term of 12 months in a mutual investment fund (MIF) from OTP Capital. This combination of tools gives conservative customers not only the opportunity to get a higher deposit rate, but also the opportunity to “try” to invest in the mutual funds. Why to “try”? Because for an average citizen in Ukraine, the investment in a mutual fund seems to be something complicated and unrealistic. However, after the first experience, customers enjoy not only the process but also the result.

OTP Capital column: A view at current events Dear investors and depositors, traditionally, we publish our operational reports on the vision of the current economic situation in the world and in Ukraine, as well as the status of assets in the portfolios of investment and pension funds managed by OTP Capital. What is happening in Ukraine? In Ukraine, the movement towards the IMF has reached the finish line. On May 13, 2020, the Verkhovna Rada finally voted for the law No. 2571-д “On Improvement of Certain Mechanisms for Banking Regulation”, the so-called “antikolomoiskyi” law. This law was the last requirement of the IMF that Ukraine had to comply with in order to receive the financing. Therefore, at the current stage, everything is done, and cooperation with the IMF will begin in a few weeks, and later, the European Union, the World Bank and the ordinary investors will join the IMF.