OTP Invest+: using mutual funds to increase investment efficiency
From 4th till 27th of December 2017 the period of attracting new investments in “OTP Invest+”, managed by OTP Capital, is taking place. This kind of product was created in 2012 for investors seeking for instruments with low risk, but with yields higher than average bank deposit rates. During these years the fund’s yield was between 25% and 33% per annum.
Investment strategy for the next year will consider investing 90% of fund’s assets in government bonds, which in the period of money market stabilization will yield a few percentage points higher than the deposits. Currently this instrument gives 15-17% of yield per annum. Another 10% of assets will be invested in Raiffeisen Bank Aval shares, which show significant growth due to stable growth of the bank's profits and a high level of dividend payments. During 10 months of 2017 these shares’ price increased by 122%.
“Decrease of bank deposit rates, which at the moment are hardly overlapping inflation rate, caused investors to search for more efficient investment instruments. OTP Invest+ is the fund for those, who want to receive higher yield, but are not ready to high risk level. We will form the fund’s portfolio of G-bonds, which can bring yield about 16% per annum, and bank's shares, which in case of stable growth of bank’s financial indicators, will make it possible to increase yield up to 19% per annum", - said Vitaliy Dyshlovy, Head of Sales and Marketing Department of AMC “OTP Capital”.
The investment period of "OTP Invest+" is 1 year. But there is a possibility of an annual extension of investment period, that allows customer to postpone payment of taxes and obtain additional return from interest capitalization. The fund has already formed a pool of investors who have been using it for long-term investment for the last several years.
Note: the profitability of investments made on financial market can increase or decrease. Fund performance results in the past do not guarantee the same performance results in the future. The state does not guarantee the profitability of investments in mutual funds. AMC OTP Capital LLC does not guarantee returns of investment instruments mentioned in this material.
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AMC OTP Capital LLC was established in July 2007 by the Ukrainian OTP Bank (9.9%) and the Hungarian Asset Management Company OTP Fund Management (90.1%), and became the second OTP Group representative after OTP Bank in Ukraine.
The company provides a wide range of high quality investment services to both corporate clients and individuals, and is one of the leaders in the mutual investment market. AMC OTP Capital manages seven public investment funds, eight venture funds, assets of insurance companies, as well as four non-governmental pension funds, including the largest non-governmental pension fund in Ukraine – Open Pension Fund “OTP Pension”, the FreeFlight Monetary Fund and the Magistral Pension Fund for railway and transport construction staff. There is UAH 4.1 billion of its assets under management.
Public joint stock company OTP Bank is one of the largest domestic banks, a recognized leader in the financial sector of Ukraine. The Bank provides a full range of financial services to corporate and private customers, as well as to small and medium enterprises. The Bank entered the Ukrainian market in 1998, and since then it enjoys a staunch reputation of socially responsible, reliable and stable institution providing its consumers with services of European quality standard. Its absolute owner is the largest Hungarian Bank OTP Bank Plc.