Dear participants of OTP Pension and Freeflight pension funds,
We invite you to review the performance results of OTP Capital non-state pension funds for June 2025.
General economic situation in Ukraine
Inflation reached a new annual high in May, rising to 15.9%. Although this figure exceeded the NBU forecast, at its June meeting the Monetary Policy Committee kept the key policy rate unchanged at 15.5%. The regulator maintains the view that May marked the inflation peak and that inflationary pressure is expected to gradually ease in the coming months, supported by lower prices for raw food products, stable administered prices, and seasonal factors.
Additional optimism is provided by the Business Activity Expectations Index (BAEI), which stood at 50.0 in June. This level indicates moderately positive business sentiment. Contributing factors include a stable energy supply situation, sufficient availability of goods, sustained consumer demand, and ongoing international financial support.
Investments in hryvnia
The Ministry of Finance continued placing government bonds (OVDP) at attractive yields:
- 16.35% — 1.5 years
- 17.1% — 2 years
- 17.8% — 3 years
These yield levels remained unchanged compared to April. Hryvnia deposit rates also stayed stable, ranging from 10.5% to 14.5%, depending on maturity and bank.
Investments in foreign currency
Yields on USD-denominated OVDP remained stable at 4.17%–4.25%. At the same time, demand significantly exceeded supply, as the Ministry of Finance maintained placement limits of USD 150–200 million, while total demand reached nearly USD 1 billion. An additional driver of strong demand was the ban on purchasing foreign currency OVDP using hryvnia.
Yields on EUR-denominated OVDP also remained unchanged at 3.25% on the primary market. On the secondary market, yields on foreign currency government bonds did not exceed 2.5% in USD and 1% in EUR.
The NBU conducted foreign exchange interventions totaling USD 2.96 billion, almost in line with the previous month. The hryvnia exchange rate on the interbank market weakened slightly from UAH 41.52/USD to UAH 41.64/USD, while the cash market rate moved from UAH 41.75/USD to UAH 41.92/USD.
Performance of non-state pension funds
OTP Pension
Fund portfolio
In June, government bonds (OVDP) worth UAH 12.5 million were purchased for the OTP Pension portfolio. In the deposit segment, funds were allocated as follows: UAH 64 million with PUMB, UAH 6.4 million with Sens Bank, and UAH 5 million with Ukreximbank.
Financial results
- Total net asset value (NAV) at the end of June: UAH 718.2 million
- Fund assets increased by ↑UAH 14.0 million (2.0%)
- Contributions received: UAH 7.2 million
- Pension payments made: UAH 0.7 million
Returns
- Monthly return: 1.1%
- Return over the last 12 months: 13.4%
Freeflight
Fund portfolio
In May, the deposit portion of Freeflight fund assets was allocated as follows: USD 84,000 with Agroprosperis Bank, USD 41,000 with Ukreximbank, and USD 15,000 with Tascombank.
Financial results
- Total NAV at the end of the month: UAH 70.9 million
- Fund assets increased by more than ↑UAH 1.6 million (2.2%)
- Contributions received: over UAH 1.4 million
- Pension payments made: UAH 16,000
Returns
Active portfolio rebalancing in Freeflight partially offset the negative impact of declining eurobond (OZDP) prices. As a result, the fund delivered the following returns in USD:
- Monthly return: 0.02%
- Return over the last 12 months: 12.7%
