Dear participants of the OTP Pension and FreeFlight pension funds,
We invite you to review the performance of the non-state pension funds managed by OTP Capital and the key developments in the financial markets during 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 non-state pension funds
OTP Pension
Fund portfolio
In June, the management of the OTP Pension Fund focused on actively enhancing portfolio returns:
- UAH 26.6 million of OVDPs were sold;
- UAH 43.7 million of OVDPs with more attractive yield characteristics were purchased;
Within the deposit allocation:
- UAH 55.0 million was placed with Credit Dnipro Bank;
- UAH 27.3 million with PUMB;
- UAH 20.7 million with Ukrgasbank.
Financial results
- Total NAV at month-end: UAH 931.5 million
- Fund assets increased by UAH 22.2 million (+2.4%)
- Contributions received: UAH 10.5 million
- Pension benefits paid: UAH 1.0 million
Performance
The Fund delivered a return of 1.4% for the month and 15.1% over the last 12 months.
