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OTP Optima Fund

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Whom do we recommend it?

Current data

Downloads, publications

Fund Features

Investment strategy - Fund's objective

Benchmark

Capital guarantee - additional security

Return - continuous reinvestment of realised gains

Flexible investment period

No limitations - investment of discretionary amount

Tax credit - legislative change (for Hungarian residents only)

Security

Also available to legal entities and organisations

FUND TYPE

DOMESTIC SHORT TERM BOND

RISK CATEGORY

MODERATE

RECOMMENDED MINIMUM INVESTMENT PERIOD

1-3 YEARS


Potential return achievable - risk assumed in case of OTP Optima Fund relative to the other funds of OTP Fund Management Ltd.

Whom do we recommend it?

We recommend this Fund to those investors, who would like to invest their money at moderate risk for at least a year in an investment which contains mostly Hungarian government bonds mortgage bonds and forint deposits. Because of the Fund’s steadily price growth the OTP Optima Fund may also facilitate the efficient organisation of the daily liquidity management of companies, municipalities and other organisations.

Current data

Effective date 16 April 1996
Asset value per unit 1.0 HUF
Net asset value 100,000,000 HUF
Annualized return since inception 0%

Net asset value per unit
16 April 1996 - 16 April 1996

Downloads, publications

The Fund's prospectuses and reports are publicly available and can be downloaded at the Asset Manager's home page as well as at the Fund's sales points (at the designated branches of OTP Bank Ltd.). You can download the previous reports of the Fund from the menu item Reports.

The Reports are currently available in Hungarian.

Monthly Report (Hungarian)

Semi-annual Report (Hungarian)

Annual Report (Hungarian)

Simplified Prospectus (Hungarian)

Prospectus (Hungarian)

Download Acrobat Reader for PDF-format

Fund Features

Fund inception date

16 April 1996

Initial net asset value

HUF 100 000 000

Unit denomination

HUF 1

Fund type

Public, open-end securities fund, Hungarian bond fund

Custodian

OTP Bank Nyrt., H-1876 Budapest V., Nádor u. 16.

Auditor

Deloitte Auditing and Consulting Ltd., H-1068 Budapest, 84/c Dózsa György Street

Investment strategy - Fund's objective

The Fund Manager invests the majority of assets placed in OTP OPTIMA Fund in securities guaranteed by the Hungarian government. In addition to government securities (discount treasury-bills, government bonds), which play a decisive role in the Fund, mortgage bonds, HUF deposits, providing a yield in excess of government bonds, and - with a minor percentage - the bonds of Hungarian companies with premium credit rating are also included in the portfolio.

The Fund's objective is to achieve competitive returns relative to the yield of short term (3-, 6- and 12-month maturities) banking investments. Key aspects of the investment policy include the maximum limitation of risks associated with the investment in order to ensure stable price appreciation of fund units.

Benchmark

The Fund is benchmarked in 85% to the RMAX index indicating the price performance of Hungarian government securities with remaining maturities between 3 months and one year, and in 15% to MAX , the index of Hungarian government bonds with over 1 year remaining maturity.

Capital guarantee - additional security

Provided that you keep your Optima fund units for minimum 30 days after the purchase on your securities account held at OTP Bank, OTP Bank guarantees the repayment of the capital paid in upon purchase. For more detailed information on the capital guarantee, please, contact the Fund sales points, in the OTP Bank branches participating in the distribution.

Return - continuous reinvestment of realised gains

Taxation
Tax-free investment

Profits realised on the Fund's investments are continuously reinvested by the Fund Manager; therefore they are not distributed as income. Investors may realise the capital gain as the difference between the redemption and purchase price, i.e. as price gain, which is classified as interest by the prevailing Hungarian tax regulations, implying a tax rate of 16%.

Fund's price, access to prices

The net asset value per unit (price) indicates the market value in Forint terms of the Fund's assets - decreased by the Fund's liabilities and increased by its receivables - allocable to a single unit. You can check the current net asset value per unit on the Fund Manager's home page as well as daily in the Napi Gazdaság (Daily Economy) and in the official journal of the Budapest Stock Exchange (Magyar Tőkepiac - Hungarian Capital Market), and on Page 519 of MTV Teletext. Based on this the current value of the investments in the Fund may be easily calculated as the product of the net asset value per unit published at the above specified places and the number of units on your account.

Flexible investment period

OTP Optima Fund is an open-end fund with indefinite term, thus you can avoid the inconveniences associated with placing term deposits and reinvestment after the maturity of your investments. You may deposit your savings to be invested in our Fund on any banking day (purchase of units). Afterwards, you can increase (purchase additional units) or decrease (redemption of units) your outstanding investment with any amount at any time without prior notice. We suggest that you redeem your investment only after the elapse of the recommended minimum investment period of 3 months.

No limitations - investment of discretionary amount

The face value of 1 HUF of units allows the flexible and exact matching of the investment value with the HUF funds at your disposal, i.e. you may buy or redeem the units in any amount at your discretion.

Tax credit - legislative change (for Hungarian residents only)

Prior to the amendment of the Taxation Act - effective as of 1 January 2004 - holders of fund units were entitled to a tax credit for the increase of the annual average balance of the fund units placed on tax capital account.

Pursuant to the amended law, deductions from the consolidated tax base under the title of investment tax credit were last allowed for 2003. The tax credit reported in the tax return concerning 2003 must be repaid by 20 April 2007 at the latest.

Based on the tax returns submitted concerning 2003, the Hungarian Tax Administration (APEH) will send a notification on the tax liability established by APEH and recorded on a separate tax account, by 30 June 2004. This tax liability assessed normally will equal to the amount of tax credit indicated in the tax return concerning 2003. The Taxation Act offers allowances for the repayment of the tax credit assessed before the expiry date (20 April 2007):
- until 31 October 2004: 81.82 % of the repaid amount
- between 1 November 2004 and 30 June 2005: 25 % of the repaid amount
- between 1 July 2005 and 30 June 2006: 5.26 % of the repaid amount

will be forgiven, i.e. credited as a surplus amount!

- no allowances will be offered for amounts repaid between 30 June 2006 and 20 April 2007.

The allowances mentioned above may be claimed only if the taxpayer has not applied for any tax credit concerning 2003. Taxpayers who continue to utilise tax credits concerning 2003, are only entitled to a 25% allowance on the amounts repaid by 31 October 2004.

The allowances are administered by APEH as offsets.

The highest allowance is available to taxpayers not applying for tax credit concerning 2003 and repaying the tax credit established by APEH by 31 October 2004. Let us show an example to illustrate this case:
-tax credit established by APEH: HUF 100,000
-tax credit paid in by 31 October 2004: HUF 55,000
- tax credit offset (81.82% of HUF 55 T): HUF 45,000

It is not compulsory to repay the total amount of the tax credit utilised as a lump-sum amount, instalments are also allowed.

After the elapse of a specified interim deadline, APEH will send an advice on any tax credits paid in to date and the associated offsetting entries within 30 days after the interim deadline.

Security

Your fund units are credited to your securities account held at OTP Bank, suitable for recording dematerialised securities. You can rest assured that your investment is safe and your fund units cannot be damaged or lost. Your units will not be delivered in a physical form.

Also available to legal entities and organisations

OTP OPTIMA Fund allows both natural - and legal persons, as well as entities without legal personality to invest their temporarily free funds at low risk. Both Hungarian residents and non-residents (as defined by the foreign exchange regulations) may invest in the Fund.