Dear participants of the OTP Pension and FreeFlight funds,
We are pleased to present the performance results of OTP Capital’s non-state pension funds for April 2025.
Overall Economic Situation in Ukraine
In April 2025, consumer inflation in Ukraine reached a new peak of 14.6% year-on-year. Despite this, the National Bank of Ukraine (NBU) kept the key policy rate unchanged at 15.5%, considering that inflation had likely peaked and would gradually decline. The main inflation drivers remained administratively regulated prices, fuel, and raw food products.
In the first half of April, currency supply and demand were balanced, but by the end of the month, demand began to exceed supply. NBU interventions increased from USD 2.06 billion in March to USD 2.24 billion in April, resulting in a slight depreciation of the hryvnia:
- Official rate: from UAH 41.37/USD to UAH 41.58/USD
- Cash rate: from UAH 41.67/USD to UAH 41.72/USD
Hryvnia Investments
The Ministry of Finance maintained yields on government bonds (OVDPs) at primary auctions at March levels:
- 1.5-year: 16.35%
- 2-year: 17.1%
- 3-year: 17.8%
Term deposit rates in the banking sector also remained unchanged at 10.5–14.5% in UAH.
Foreign Currency Investments
Yields on USD-denominated OVDPs declined from 4.6–4.7% to 4.17–4.25% due to high demand and limited supply. The Ministry of Finance set a placement limit of USD 200 million, while demand exceeded USD 1 billion.
On the secondary market, yields on foreign-currency OVDPs did not exceed 2.5% in USD and 1% in EUR.
Currency demand and supply were balanced in the first half of April, but by the end of the month, demand began to outstrip supply. Limited primary market supply increased demand on the secondary market, while NBU interventions rose only slightly compared to March, which negatively affected the hryvnia exchange rate.
Non-State Pension Fund Results
OTP Pension
Portfolio
In April, the OTP Pension Fund sold UAH 34.7 million of OVDPs and purchased UAH 72.1 million of new OVDPs with higher yields. In the deposit segment, UAH 8.6 million was placed with Universal Bank.
Financial Results
- Total net assets (NAV) at the end of April: UAH 688.7 million
- Fund assets increased by UAH 15.2 million (2.2%)
- Contributions received: UAH 7.7 million
- Pensions paid: UAH 0.7 million
Fund Performance
Active portfolio rebalancing allowed the fund to offset the negative impact of falling OVDP prices caused by rising yields. For the reporting period, OTP Pension generated:
- 1.2% for the month
- 15.7% over the last 365 days
FreeFlight
Portfolio
In April, the FreeFlight fund placed deposits as follows: USD 80 thousand with Ukreximbank and USD 8 thousand with Tascombank.
Financial Results
- Total NAV at month-end: UAH 67.3 million
- Fund assets increased by over UAH 0.5 million (0.7%)
- Contributions received: over UAH 0.8 million
- Pensions paid: UAH 184.6 thousand
Fund Performance
Active portfolio rebalancing partially offset the negative impact of falling OSDP prices. In April, the fund generated:
- -0.4% for the month in USD
- 12.3% over the last 365 days in USD
