Dear Investors,

We are pleased to present our market overview and the performance results of OTP Capital’s mutual investment funds for July 2026.

General economic situation

At the end of July 2026, the National Bank of Ukraine unexpectedly increased the key policy rate by 0.5 percentage points to 15.5%. The decision came as a surprise to financial markets, as the consensus forecast had anticipated that the policy rate would remain at 15% through the end of the year.

At the same time, annual inflation slowed to 7.8% in June, down from 8.2% a month earlier, supporting positive macroeconomic expectations. However, the NBU explained that the rate hike was necessary to contain underlying inflationary pressures and prevent inflation from accelerating in the second half of the year.

According to the regulator, tighter monetary policy is intended to preserve the attractiveness of hryvnia-denominated assets, support foreign exchange market stability, and keep inflation expectations anchored over the medium term.

Hryvnia- and foreign currency-denominated instruments

In July, yields on hryvnia-denominated domestic government bonds (OVDPs) continued their gradual decline amid consistently strong investor demand:

• 1-year OVDPs: 15.13% (unchanged)
• 2-year OVDPs: decreased from 15.73% to 15.46%
• 3-year OVDPs: decreased from 16.15% to 15.98%
• 3.5-year OVDPs: decreased from 16.50% to 16.44%

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 maturity.

In July, the Ministry of Finance of Ukraine issued euro-denominated OVDPs with a yield of 3.08%. In the secondary market, yields on foreign currency-denominated government bonds remained at up to 2.25% in U.S. dollars and up to 0.75% in euros.

Foreign exchange market

Demand for foreign currency remained elevated in July, resulting in a slight depreciation of the hryvnia from UAH 44.59/USD to UAH 44.68/USD.

To smooth exchange rate fluctuations, the National Bank of Ukraine continued its active foreign exchange interventions. Total interventions amounted to USD 4.8 billion, only slightly below the record USD 5.0 billion recorded in June.

The exchange rate is expected to remain within the UAH 44.5–45.0/USD range throughout the third quarter of 2026. At the same time, a gradual depreciation of the hryvnia to approximately UAH 46/USD by year-end cannot be ruled out.

External markets and Eurobonds

In July, the market for Ukrainian Eurobonds entered a stabilization phase following the strong rally seen in previous months. As demand and supply reached a more balanced level, Ukrainian Eurobond prices declined by 2–4%, depending on maturity.

OTP Capital funds performance

OTP Classic

In July, the fund sold UAH 7.6 million of domestic government bonds (OVDPs) and purchased UAH 8.0 million of new OVDPs.

The fund delivered a 0.9% monthly return and a 14.5% return over the last 365 days.

OTP Kids

In July, the fund sold UAH 3.0 million of OVDPs and purchased UAH 3.5 million of longer-maturity government bonds. The rebalancing was aimed at increasing the portfolio yield through higher-yielding government securities.

The fund generated a 0.9% monthly return and 17.9% over the last 365 days.

OTP Equity Fund

In July, portfolio management focused on reinvesting assets into short-term bank deposits at the most attractive available rates. Deposits were renewed with:

• JSC Ukreximbank – UAH 1.0 million;
• JSC PUMB – UAH 1.0 million;
• JSC Ukrgasbank – UAH 1.0 million.

The fund posted a -1.9% return for the month and 6.1% over the last 365 days.

OTP Currency Fund

No transactions involving the fund’s assets were carried out in July.

The fund delivered a 0.5% monthly return and 23.3% in U.S. dollar terms over the last 365 days.

OTP Maximum

During July, portfolio management focused on actively rebalancing the fund’s government bond holdings to enhance portfolio yield. The fund sold UAH 67 million of OVDPs and purchased UAH 73 million of higher-yielding government bonds.

This active portfolio rebalancing, which is an integral part of the fund’s investment strategy, continues to generate additional value for both the fund and its investors.

The fund delivered a 1.2% monthly return, equivalent to an annualized return of 23.6%.