Dear investors,
We present a market overview with the performance results of OTP Capital mutual investment funds for July 2025.
General economic situation in Ukraine
In June, inflation began to slow down, decreasing to 14.3% after peaking in May, in line with the NBU’s expectations. However, the National Bank revised its long-term inflation outlook due to weather-related risks affecting harvests, threats of infrastructure attacks, and uncertainty regarding external financing.
Business sentiment also weakened: the Business Expectations Index declined to 48.3 points. As a result, the NBU’s Monetary Policy Committee kept the key policy rate unchanged at 15.5%, while adjusting its forecast for future rate cuts over the coming years.
Hryvnia investments
In July, the Ministry of Finance maintained attractive yields at primary auctions of domestic government bonds (OVDP):
- 16.35% — 1.5-year maturity
- 17.1% — 2-year maturity
- 17.8% — 3-year maturity
Bank deposit rates remained unchanged at 10.5%–14.5% in hryvnia. This environment allows fund investors to maintain stable income without taking excessive risk.
Foreign currency investments
Demand for foreign currency exceeded supply in July, prompting the NBU to increase the volume of currency interventions to USD 3.4 billion. Against this backdrop, the hryvnia weakened slightly:
- the official exchange rate depreciated from UAH 41.64/USD to UAH 41.76/USD
- the cash market rate moved from UAH 41.92/USD to UAH 41.93/USD
Yields on foreign currency-denominated OVDP remained stable:
- 4.17%–4.25% in US dollars
- 3.25% in euros
On the secondary market, yields were lower, reaching up to 2.5% in US dollars and 1% in euros. At the same time, prices of Ukrainian eurobonds (OZDP) remained largely unchanged, as investors awaited coupon payments scheduled for August.
Results of funds under OTP Capital management
OTP Classic
In July, the fund sold OVDP from its portfolio totaling UAH 2.5 million and purchased new OVDP amounting to UAH 7 million.
- Monthly return: 0.8%
- Annual return: 13.6%
OTP Kids
The fund purchased additional OVDP totaling UAH 1.8 million for its portfolio.
- Monthly return: 0.3%
- Annual return: 17.4%
OTP Equity Fund
In July, the fund’s management focused on reallocating assets into short-term deposits at the highest available rates. In particular, deposits 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: 1.0%
- Annual return: 19.4%
OTP Valutnyi
In July, the fund sold Ukrainian eurobonds (OZDP) totaling UAH 4.5 million and reinvested the proceeds into OZDP with higher yields.
- Monthly return: -0.2% in USD
- Annual return: 7.9% in USD
