Dear Investors,
We are pleased to present our market review and the performance results of the OTP Capital mutual investment funds for June 2026.
General economic environment
At its regular Monetary Policy Committee meeting in June 2026, the National Bank of Ukraine (NBU) kept the key policy rate unchanged at 15%. The regulator noted a seasonal easing of inflationary pressures and reaffirmed its April inflation forecast of 9.4% for year-end.
An additional positive factor for inflation expectations was the reopening of the Strait of Hormuz. Following this development, global oil prices declined to approximately USD 70 per barrel, supporting the stabilization of Ukraine’s macroeconomic outlook for 2026.
Hryvnia- and foreign currency-denominated instruments
In June, yields on hryvnia-denominated domestic government bonds (OVDPs) at primary auctions began to decline modestly amid stronger investor demand:
- 1-year OVDPs: decreased from 15.15% to 15.13%;
- 2-year OVDPs: decreased from 15.85% to 15.73%;
- 3-year OVDPs: remained unchanged at 16.15%.
Interest rates on hryvnia term deposits remained within the 9–14% range, while U.S. dollar deposit rates stayed at up to 2%, depending on the deposit term.
In June, the Ministry of Finance of Ukraine issued euro-denominated OVDPs with a yield of 3.18%. On the secondary market, yields on foreign-currency-denominated OVDPs did not exceed 2.25% in U.S. dollars and 0.75% in euros.
Foreign exchange market
In June, demand for foreign currency significantly exceeded supply, resulting in the depreciation of the hryvnia from UAH 44.30/USD to UAH 44.59/USD. To smooth exchange rate fluctuations, the National Bank of Ukraine significantly increased its foreign exchange interventions, which rose by 56%, from USD 3.2 billion to USD 5.0 billion, the highest level recorded in recent years.
The exchange rate is expected to stabilize within the range of UAH 44.5–45.0 per U.S. dollar during the third quarter of 2026.
Ukraine’s external debt instruments remained highly attractive to investors in June. Against this backdrop, Ukrainian eurobonds continued the upward trend established in April, gaining 8–9%, depending on maturity.
Results of the funds managed by OTP Capital
OTP Classic
In June, UAH 5.9 million of domestic government bonds (OVDPs) were sold from the OTP Classic Fund’s portfolio, while UAH 11.7 million was reinvested in OVDPs.
The Fund delivered a return of 1.3% for the reporting month and 15.2% over the last 365 days.
OTP Kids
In June, UAH 55.4 million of OVDPs were sold from the OTP Kids Fund’s portfolio, while UAH 54.2 million was reinvested in longer-maturity OVDPs. The rebalancing of the government bond portfolio was carried out to increase the yield of the OVDPs held by the Fund.
The Fund generated a return of 1.8% for the month and 19.8% over the last 365 days.
OTP Equity Fund
In June, the OTP Equity Fund continued reallocating assets into short-term bank deposits offering the highest available interest rates. Specifically, deposits of UAH 1.0 million each were renewed with Ukreximbank and Ukrgasbank.
The Fund posted a return of 5.5% for June and 11.3% over the last 365 days.
OTP Currency
In June, UAH 4.5 million of domestic government bonds (OVDPs) were added to the OTP Currency Fund’s portfolio.
The Fund delivered a return of 1.6% for June and 18.4% over the last 365 days, measured in U.S. dollars.
OTP Maximum
In June, the OTP Maximum Fund continued actively rebalancing its government bond portfolio to enhance overall portfolio yield. Specifically, UAH 13.0 million of OVDPs were sold, while UAH 18.2 million was reinvested in OVDPs offering more attractive yields.
The active portfolio rebalancing, which is an integral part of the Fund’s investment strategy, generates additional returns for both the Fund and its investors.
The Fund delivered a return of 1.7% for the reporting month, equivalent to an annualized return of 22.2%.
