New pension fund with foreign currency strategy is available in OTP Bank

Now visiting one of OTP Bank branches you can join non-state pension fund "FreeFlight", which has foreign currency investment strategy. It means that all hryvna contributions from participants will be invested exclusively in foreign currency instruments in order to protect savings from devaluation as well as to obtain foreign currency yields higher than bank deposits offer. The portfolio of the fund will include the most reliable instruments of the financial market – G-bonds and bank deposits denominated in foreign currency, which provide protection and constant increase of savings.

The non-state pension fund "FreeFlight" became the second pension fund presented in OTP Bank branches and owned by AMC “OTP Capital”, another OTP Group member. The biggest pension fund of AMC “OTP Capital” is OTP Pension and currently has 41 460 participants, which hold UAH 133 million on accounts in the fund.

"We pay a lot of attention to build long-term relationships with our clients, that’s why the development of pension savings is a significant part of our philosophy. Moreover, the experience of OTP Group in other countries proved the high potential of investment products such as mutual and pension funds, G-bonds and other securities, which can form a full-fledged diversified portfolio for our clients. New pension fund presence among our services will give an opportunity to choose a foreign currency strategy for pension assets accumulation for our clients and their relatives," said Volodymyr Mudryi, Member of the Management Board of JSC “OTP Bank”.

The main goal of pension funds is to accumulate pension contributions from individuals and corporations, to invest them effectively in order to protect them against inflation and to provide additional non-state pension payments for fund’s participants.

"There is a demand for foreign currency instruments in Ukraine, especially when we speak about long-term savings. Therefore, we decided to offer a pension fund with exclusively foreign currency strategy. All contributions received from investors will be invested in foreign currency instruments, which will be revalued on daily basis at the current NBU rate. Thus, the client will receive two yields – foreign currency yield and yield from devaluation in case of exchange rate growth. We have the similar investment strategy for “OTP Valutnyi” mutual fund, which has been successfully proved over last 6 years. As for our other fund - OTP Pension, it will continue to use a balanced investment strategy that uses a wide range of financial instruments, including foreign currency denominated instruments depending on the market situation in order to produce yield higher than inflation rate," said Natalia Mezhenska, CEO of AMC “OTP Capital”.

In December 2018, OTP Capital, OTP Group member, which is responsible for asset management of mutual, pension and venture funds, as well as assets of insurance companies, became the sole founder of the non-state pension fund "FreeFlight". "OTP Capital" has been managing assets of "FreeFlight" since August 2017, but only after founder change it is fully responsible for fund’s investment activities and results.

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.