Why has international expansion become such a priority?
György Éder: Quite simply because the size of the Hungarian market has become a constraint on further growth. We continue to play a defining role in Hungary, and we intend to preserve that position. At the same time, the growth potential at regional level is significantly greater. OTP Group has a strong banking presence in several countries, and investment services can naturally be built on this network.
So the strategy is relatively straightforward?
GyÉ: Yes. From the outside, it may seem simple: as a Hungarian asset manager, we sell Hungarian investment funds in several countries. In practice, however, this requires a great deal of work. What is certain is that it would be much harder to achieve without close cooperation within OTP Group.
Where does this international presence stand today?
GyÉ: We currently distribute Hungarian funds in Bulgaria, Croatia, Montenegro and Slovenia through OTP Bank’s local subsidiaries, and distribution will soon start in Albania as well. At the same time, we also have a local asset management presence in certain markets: we operate our own asset management subsidiaries in Bulgaria, Croatia, Serbia and Ukraine. In Slovenia, we recently strengthened our position through a completed acquisition. In the long term, we want to be present as a local player in markets where the environment justifies it.
“Our growth story now extends across the region.”
Why are these markets so attractive?
GyÉ: Because their savings culture is at an earlier stage of development than in Western European countries. In many of these markets, investment funds still account for a relatively low share of the economy, while household savings are substantial. If convergence continues over the longer term, these markets may offer considerable growth potential.
How different are these markets from one another?
GyÉ: Different enough to require a tailored approach in each country. In Bulgaria, for example, the introduction of the euro could give new momentum to the investment market. In Croatia, memories of the 2008 crisis held back interest in capital markets for a long time, and this is only gradually beginning to change. Slovenia is a refreshing exception for historical reasons: equity and fund investments are much more naturally present in household portfolios, largely due to the country’s privatization practices.
What connects the approaches used in the different countries?
GyÉ: Whatever the investment and whatever the location, the key issue is always building trust. It is not enough to offer a good product; we also need to show how it fits into the savings habits of the given country. This is why local presence and targeted education are so important. We organize professional events and workshops, hold trainings and client meetings, and regularly meet banking colleagues, clients and advisors.
Which products are attracting the most interest?
GyÉ: While classic short-duration bond-type funds remain important, demand for higher-risk investments is becoming increasingly visible. In many markets, investors are beginning to open up to longer-term wealth-building solutions, which we see as an important sign of market maturity. Another sign is the spread of passive investment approaches. OTP Fund Management is fundamentally an active asset and fund manager, but by combining this emerging demand with the advantages of our regional presence, we launched a passive investment product in 2024 that covers the entire region. The OTP CETOP UCITS ETF is a regional, benchmark-tracking exchange-traded fund that provides access to leading listed companies in Central and Eastern Europe through a single instrument.
Why might this be attractive to investors?
GyÉ: Our regional market knowledge enabled us to create a product that meets the needs of both retail and institutional investors, whether local or international. In the case of many global institutional investors, the issue is not a lack of interest in the region but the absence of easily manageable access. The OTP CETOP UCITS ETF offers regional exposure in a single instrument, helping to overcome the problem that, taken individually, Central and Eastern European markets often appear too small or insufficiently liquid. Cost is also an important consideration: the TER, or Total Expense Ratio, which includes the management fee, custody fees, operating costs and other expenses required for the fund’s operation, stood at 70 basis points for this instrument in 2025. This may also be particularly attractive for private investors, as indicated by strong secondary market activity.
“The region’s savings culture still has considerable growth ahead.”
Why can this structure be a good choice for international institutional investors?
GyÉ: First, for the reason I just mentioned: the OTP CETOP UCITS ETF can be used as an infrastructure-like instrument for managing Central and Eastern European equity exposure. Second, because equity markets in our region remain undervalued compared with developed markets. Over the longer term, this may offer an attractive entry point for investors, both institutional and private.
What role does OTP Fund Management expect to play in this likely upswing?
GyÉ: Our goal is to become a defining player in the asset management market in every country where OTP Group is present. We do not simply want to export Hungarian products; in the long term, we think of ourselves as a regional asset manager. We have the shareholder support, professional expertise and resources needed to increasingly think in terms of Central and Eastern Europe as a whole, while continuing to maintain our benchmark player role in Hungary.
This document is a marketing issue, no information, opinions or data in this document constitute either investment advice, analysis or contract proposal. Past performances do not guarantee future performances. For detailed information on the fund’s investment policy and potential investment risks, please see the key information documents, official prospectus, and fund rules available at the fund’s distribution place. Expenses related to the marketing of the investment fund (purchasing, holding, selling) are available in the fund rules and at the distribution sites. Website: otpalap.hu The indicative net asset value of the fund’s investment units is available on the Budapest Stock Exchange website (www.bet.hu).
This article was first published in Economic Review 2026.
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