Dear participants of the OTP Pension and Freeflight pension funds,
We invite you to review the performance results of the non-state pension funds managed by OTP Capital for July 2025.
General economic situation in Ukraine
In June, inflation began to slow down, decreasing to 14.3% after peaking in May, in line with the NBU’s expectations. However, the National Bank revised its long-term inflation outlook due to weather-related risks affecting harvests, threats of infrastructure attacks, and uncertainty regarding external financing.
Business sentiment also weakened: the Business Expectations Index declined to 48.3 points. As a result, the NBU’s Monetary Policy Committee kept the key policy rate unchanged at 15.5%, while adjusting its forecast for future rate cuts over the coming years.
Hryvnia investments
In July, the Ministry of Finance maintained attractive yields at primary auctions of domestic government bonds (OVDP):
- 16.35% — 1.5-year maturity
- 17.1% — 2-year maturity
- 17.8% — 3-year maturity
Bank deposit rates remained unchanged at 10.5%–14.5% in hryvnia. This environment allows fund investors to maintain stable income without taking excessive risk.
Foreign currency investments
Demand for foreign currency exceeded supply in July, prompting the NBU to increase the volume of currency interventions to USD 3.4 billion. Against this backdrop, the hryvnia weakened slightly:
- the official exchange rate depreciated from UAH 41.64/USD to UAH 41.76/USD
- the cash market rate moved from UAH 41.92/USD to UAH 41.93/USD
Yields on foreign currency-denominated OVDP remained stable:
- 4.17%–4.25% in US dollars
- 3.25% in euros
On the secondary market, yields were lower, reaching up to 2.5% in US dollars and 1% in euros. At the same time, prices of Ukrainian eurobonds (OZDP) remained largely unchanged, as investors awaited coupon payments scheduled for August.
Performance results of non-state pension funds
OTP Pension
Fund portfolio
In July, the fund purchased domestic government bonds (OVDP) totaling UAH 3.6 million. Funds placed in bank deposits amounted to:
- UAH 9.8 million — Oschadbank
- UAH 3.6 million — Sense Bank
Financial results
- Total NAV as of the end of July: UAH 730.5 million
- Fund assets increased by ↑ UAH 12.3 million (1.7%)
- Contributions received: UAH 7.7 million
- Pension payments made: UAH 0.8 million
Performance
During the reporting period, OTP Pension delivered the following results for its participants:
- Monthly return: 0.7%
- Return over the last 365 days: 13.4%
Freeflight
Fund portfolio
In July, investments were made exclusively in bank deposits:
- USD 8.7 thousand — Sense Bank
- UAH 1.1 million — Ukrgasbank
- USD 33 thousand — Tascombank
Financial results
- Total NAV as of the end of the month: UAH 72.5 million
- Fund assets increased by more than ↑ UAH 1.6 million (2.2%)
- Contributions received: over UAH 1.5 million
- Pension payments made: UAH 25 thousand
Performance
Active portfolio rebalancing partially offset the negative impact of declining prices of Ukrainian eurobonds (OZDP). As a result, the fund’s performance in US dollars amounted to:
- Monthly return: -0.1% in USD
- Return over the last 365 days: 10.8% in USD
Non-state pension funds managed by OTP Capital continue to serve as an effective long-term savings instrument, even amid an unstable macroeconomic environment.
