Dear participants of the OTP Pension and FreeFlight pension funds,
We invite you to review the performance of OTP Capital’s non-state pension funds and the key developments in the financial markets in August 2026.
GENERAL ECONOMIC SITUATION
In August, intensified attacks by the aggressor on infrastructure facilities, including ports, warehouses and production facilities, increased inflationary pressure on the economy. Price growth is also being driven by higher electricity prices resulting from Russian attacks, higher fuel prices due to the war in the Middle East, rising business costs for recovery and labor, as well as the weakening of the hryvnia and robust consumer demand.
To contain inflationary pressures, the National Bank of Ukraine is expected to adopt a tighter monetary policy stance, which may lead to an increase in the key policy rate in September–December 2026.
Hryvnia and foreign-currency instruments
In August, yields on hryvnia-denominated domestic government bonds at primary auctions stopped declining and returned to the levels seen in the first half of July:
1-year domestic government bonds: 15.13–15.15%;
2-year: 15.64%;
3.5-year: 16.5%.
Rates on hryvnia term deposits increased by 50 bps and ranged from 9% to 14.5%, depending on the placement term. Rates on US dollar deposits remained unchanged, at up to 2%.
In August, the Ministry of Finance of Ukraine did not offer foreign-currency-denominated domestic government bonds at primary auctions. On the secondary market, their yields were up to 2.25% in US dollars and up to 0.75% in euros.
FOREIGN EXCHANGE MARKET
In August, demand for foreign currency decreased significantly, which was reflected in the hryvnia exchange rate: over the month, the hryvnia strengthened from UAH 44.68 to UAH 44.35 per US dollar.
At the same time, NBU foreign exchange interventions remained high at 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 US dollar by the end of Q3 2026, and may gradually weaken to around UAH 46 per US 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 par value during the month and remained at July levels at the end of August.
PERFORMANCE OF NON-STATE PENSION FUNDS
OTP PENSION
Fund portfolio
In August, the OTP Pension fund purchased domestic government bonds worth UAH 9.1 million.
In the deposit portion of the portfolio, UAH 24.6 million was placed with JSC Agroprosperis Bank.
Financial results
Total NAV at the end of the month amounted to UAH 962.9 million.
The fund’s assets increased by ↑UAH 15.5 million (1.6%).
UAH 11.1 million in contributions were made.
UAH 2.2 million in pension payments were made.
Return:
Fund performance: the fund’s return was 1.3% for the month and 14.2% over the past 12 months.
FREEFLIGHT
Fund portfolio
During the reporting month, the FreeFlight fund purchased domestic government bonds worth UAH 2.4 million.
In the deposit portion of the portfolio, USD 58,000 was placed with JSC Agroprosperis Bank.
Financial results
Total NAV at the end of the month amounted to UAH 98.7 million.
The fund’s assets increased by UAH 3.1 million (3.1%).
More than UAH 2.5 million in contributions were made.
More than UAH 80,000 in pension payments were made.
Return:
Fund performance: 0.5% for the month and 3.5% over the past 365 days (in US dollars).
