Dear investors,
We present a market overview with the performance results of OTP Capital mutual investment funds for June 2025.
General economic situation in Ukraine
Inflation reached a new annual high in May, rising to 15.9%. Although this figure exceeded the NBU forecast, at its June meeting the Monetary Policy Committee kept the key policy rate unchanged at 15.5%. The regulator maintains the view that May marked the inflation peak and that inflationary pressure is expected to gradually ease in the coming months, supported by lower prices for raw food products, stable administered prices, and seasonal factors.
Additional optimism is provided by the Business Activity Expectations Index (BAEI), which stood at 50.0 in June. This level indicates moderately positive business sentiment. Contributing factors include a stable energy supply situation, sufficient availability of goods, sustained consumer demand, and ongoing international financial support.
Investments in hryvnia
The Ministry of Finance continued placing government bonds (OVDP) at attractive yields:
- 16.35% — 1.5 years
- 17.1% — 2 years
- 17.8% — 3 years
These yield levels remained unchanged compared to April. Hryvnia deposit rates also stayed stable, ranging from 10.5% to 14.5%, depending on maturity and bank.
Investments in foreign currency
Yields on USD-denominated OVDP remained stable at 4.17%–4.25%. At the same time, demand significantly exceeded supply, as the Ministry of Finance maintained placement limits of USD 150–200 million, while total demand reached nearly USD 1 billion. An additional driver of strong demand was the ban on purchasing foreign currency OVDP using hryvnia.
Yields on EUR-denominated OVDP also remained unchanged at 3.25% on the primary market. On the secondary market, yields on foreign currency government bonds did not exceed 2.5% in USD and 1% in EUR.
The NBU conducted foreign exchange interventions totaling USD 2.96 billion, almost in line with the previous month. The hryvnia exchange rate on the interbank market weakened slightly from UAH 41.52/USD to UAH 41.64/USD, while the cash market rate moved from UAH 41.75/USD to UAH 41.92/USD.
Results of funds under OTP Capital management
OTP Classic
In June, the fund sold part of its bond portfolio (government bonds, OVDP, totaling UAH 27.5 million) and purchased new bonds amounting to UAH 7.5 million. In addition, UAH 8.2 million was placed as a time deposit with Ukreximbank.
- Monthly return: 1.1%
- Annual return: 14.1%
OTP Kids
The fund continued investing in domestic government bonds. In June, the portfolio was increased by newly purchased OVDP totaling UAH 37.8 million.
- Monthly return: 2.8%
- Annual return: 18.4%
OTP Equity Fund
In June, the fund focused on placing assets in deposits at the highest available rates. In particular, deposit agreements were renewed with Ukreximbank (UAH 1 million) and Ukrgasbank (UAH 1 million).
Share prices included in the portfolio remained unchanged during the month.
- Monthly return: 0.5%
- Annual return: 18.9%
OTP Valutnyi
No active asset transactions were carried out in June. The fund’s performance was negatively affected by a market revaluation of Ukrainian eurobonds (OZDP) denominated in US dollars.
- Monthly return: 0.5% in USD
- Annual return: 15.2% in USD
