Dear Investors,
We are pleased to present an overview of the market and the performance of OTP Capital’s investment funds in August 2026.
GENERAL ECONOMIC SITUATION
In August, intensified attacks by the aggressor on infrastructure facilities, including ports, warehouses and production facilities, increased inflationary pressures on the economy. Rising electricity prices as a result of Russian attacks, higher fuel prices due to the war in the Middle East, increased business costs related to reconstruction and labor, as well as the weakening of the hryvnia and strong consumer demand, also contributed to price growth.
To contain inflationary pressures, the National Bank of Ukraine is expected to adopt a tighter monetary policy, which may result in an increase in the key policy rate between September and December 2026.
HRYVNIA AND FOREIGN CURRENCY INSTRUMENTS
In August, yields on hryvnia-denominated domestic government bonds (OVDPs) at primary auctions stopped declining and returned to the levels seen in the first half of July:
1-year OVDPs: 15.13–15.15%;
2-year OVDPs: 15.64%;
3.5-year OVDPs: 16.5%.
Interest rates on term hryvnia deposits increased by 50 bps and ranged from 9% to 14.5%, depending on the placement term. Rates on U.S. dollar deposits remained unchanged at up to 2%.
In August, the Ministry of Finance of Ukraine did not offer foreign-currency-denominated OVDPs at primary auctions. On the secondary market, their yields were up to 2.25% in U.S. dollars and up to 0.75% in euros.
FOREIGN EXCHANGE MARKET
In August, demand for foreign currency decreased significantly, affecting the hryvnia exchange rate. During the month, the hryvnia appreciated from UAH 44.68 to UAH 44.35 per U.S. dollar.
At the same time, NBU foreign exchange interventions remained high, amounting to USD 4.82 billion, compared with USD 4.8 billion in July.
The hryvnia exchange rate is expected to stabilize within the range of UAH 44.5–45 per U.S. dollar by the end of Q3 2026 and may gradually weaken to around UAH 46 per U.S. dollar in Q4.
EXTERNAL MARKETS AND EUROBONDS
In August, Ukraine’s external debt instruments reached a balance between investor demand and supply. Prices of Ukrainian Eurobonds fluctuated between 84% and 88% of their face value during the month and remained at July levels at the end of August.
PERFORMANCE OF FUNDS MANAGED BY OTP CAPITAL
OTP Classic
In August, OVDPs worth UAH 0.8 million were sold from the fund’s portfolio. In the deposit component, UAH 6 million was placed with Agroprosperis Bank JSC.
As of the end of the reporting month, the fund delivered a return of 1.1% and 14.2% over the last 365 days.
OTP Kids
In August, OVDPs worth UAH 34.6 million were sold from the fund’s portfolio, while OVDPs worth UAH 0.9 million with longer maturities were purchased.
The government bond portfolio was rebalanced to increase the yield of the OVDPs held in the fund’s portfolio.
The fund’s return for the month amounted to 1.0% and 16.4% over the last 365 days.
OTP Equity Fund
In August, the fund was managed by reallocating funds into short-term deposits offering the highest available rates. In particular, deposits of UAH 1 million were placed with PUMB JSC, and UAH 1 million with Ukrgasbank JSC.
The fund’s return for the month amounted to 11.0% and 21.5% over the last 365 days.
OTP Valutnyi
In August, no transactions were carried out with the assets of the “OTP Valutnyi” fund.
The fund’s return for the month amounted to -0.7%, while its return over the last 365 days was 14.9% in U.S. dollars.
OTP Maximum
In August, management of the “OTP Maximum” fund focused on actively rebalancing the government bond portfolio to increase its yield.
OVDPs worth UAH 49.2 million were sold from the portfolio, while OVDPs worth UAH 40.8 million with higher yields were purchased.
Active portfolio rebalancing, as provided for by the fund’s investment strategy, enables the fund and its clients to generate additional returns.
As of the end of August, the fund delivered a return of 1.2%, equivalent to 15.2% on an annualized basis.
