Dear Investors,

We are pleased to present a market overview along with the performance results of OTP Capital’s unit investment funds for February 2026.

GENERAL ECONOMIC SITUATION IN UKRAINE

At the beginning of 2026, inflation continued its downward trend and slowed to 7.4% year-on-year in January, creating conditions for a potential further easing of monetary policy.

At the same time, the National Bank of Ukraine (NBU) maintains a cautious approach due to the delayed inflationary effects of damage to the energy infrastructure, which may increase business costs and limit the economy’s production capacity.

According to the NBU’s baseline macroeconomic forecast, the key policy rate is expected to decrease to 14.5% in 2026, with the possibility of further easing over the forecast horizon.

HRYVNIA AND FOREIGN CURRENCY INSTRUMENTS

In February, yields on hryvnia-denominated government bonds (OVDP) at primary auctions continued to decline amid expectations of further monetary easing and strong investor demand:

• 1-year bonds — decreased from 16.19% to 15.32%
• 3-year bonds — decreased from 17.44% to 16.28%

Interest rates on term deposits in the banking sector declined by 50 basis points, ranging between 9–14% in hryvnia, while USD deposit rates remained unchanged at up to 2%, depending on the maturity.

In February, the Ministry of Finance resumed the issuance of foreign currency-denominated OVDP on the primary market with a yield of 3.8% in USD, which is lower than the December level (4.01%). On the secondary market, yields on FX-denominated OVDP did not exceed 3.4% in USD and 1.5% in EUR.

The balance between supply and demand in the foreign exchange market improved, leading to a strengthening of the hryvnia from 43.59 to 43.13 UAH/USD. The volume of NBU currency interventions declined by 15.5% to USD 3 billion.

A moderate and controlled depreciation of the hryvnia to 43.5–44 UAH/USD is expected by the end of the first quarter of 2026.

Positive signals regarding external financing, including the EU’s decision to provide the so-called “reparations loan,” as well as regular coupon payments on Eurobonds, supported investor sentiment. As a result, Ukrainian Eurobond prices increased by 1–4.2% in February, depending on maturity, reaching record levels.

RESULTS OF INVESTMENT FUNDS MANAGED BY OTP CAPITAL

OTP Classic

In February, government bonds (OVDP) totaling UAH 8.7 million were sold from the portfolio of OTP Classic, while OVDP with higher yields were purchased for the same amount.

At the end of the reporting month, the fund delivered a return of 1.4%, with a 14.2% return over the past 365 days.

OTP Kids

In February, OVDP totaling UAH 17.6 million were sold from the portfolio of OTP Kids, while OVDP totaling UAH 17.5 million with longer maturities were purchased.

The rebalancing within the structure of government bonds was carried out to increase the yield of the OVDP instruments held in the fund’s portfolio.

The fund delivered a monthly return of 2.2% and 17.9% over the past 365 days.

OTP Equity Fund

In February, the management of OTP Equity Fund focused on reallocating funds into short-term bank deposits with the highest available interest rates. In particular, deposits totaling UAH 1 million were renewed with Ukreximbank, and another UAH 1 million with Ukrgasbank.

The fund’s return in February amounted to -3.4%, while the return over the past 365 days reached 8.2%.

OTP Valutnyi

No asset transactions were carried out in the portfolio of OTP Valutnyi during the reporting month.

As a result, the fund recorded a monthly return of -0.2%, while the return over the past 365 days amounted to 4.4% in USD.

OTP Maximum

In February, the management of OTP Maximum focused on active rebalancing within the government bond portfolio in order to increase overall yield. In particular, OVDP totaling UAH 20.7 million were sold, while UAH 25.5 million worth of higher-yield OVDP were purchased.

Active portfolio rebalancing, which is part of the fund’s investment strategy, contributes to generating additional returns for both the fund and its investors.

At the end of the reporting month, the fund delivered a return of 2.6%, equivalent to 39.9% on an annualized basis.