Dear participants of the “OTP Pension” and “FreeFlight” pension funds,
We invite you to review the performance results of OTP Capital’s non-state pension funds for December 2025.
GENERAL ECONOMIC SITUATION IN UKRAINE
In December 2025, Ukraine’s financial situation remained stable and predictable. At its final monetary policy meeting of the year, the National Bank of Ukraine kept the key policy rate unchanged at 15.5%, confirming the consistency of its monetary policy stance.
Inflation dynamics turned out to be better than expected by the regulator. In November, inflation slowed to 9.3% year-on-year and 0.4% month-on-month, largely driven by a decline in prices for unprocessed food products.
A key event of the month was the agreement reached with the European Union on providing Ukraine with long-term financial support in the form of a so-called “reparations loan” amounting to EUR 90 billion over the next two years. This decision significantly strengthened the country’s financial resilience and boosted investor confidence in Ukrainian debt instruments.
In the foreign exchange market, the NBU substantially increased its interventions — reaching USD 4.46 billion in December. As a result, the official exchange rate of the hryvnia remained stable at UAH 42.27 per USD.
HRYVNIA AND FOREIGN-CURRENCY INSTRUMENTS
Yields on hryvnia-denominated domestic government bonds (OVDPs) at primary auctions remained unchanged in December:
- 16.35% — 1.5 years
- 17.1% — 2 years
- 17.5% — 2.5 years
- 17.8% — 3 years
Interest rates on term deposits stayed within the range of 10.5–14.5% in hryvnia and up to 2% in US dollars.
Yields on foreign-currency OVDPs declined to 3.9–4.1% in the primary market amid strong demand and limited supply. In the secondary market, yields did not exceed 3.5% in US dollars and 2.3% in euros.
Positive news regarding external financing supported price growth of Ukrainian Eurobonds, which gained 4.5–6% in December, reaching record-high levels.
PERFORMANCE OF NON-STATE PENSION FUNDS
OTP PENSION
Fund portfolio
In December, the fund actively rebalanced its portfolio, focusing on extending bond maturities and increasing future returns.
OVDP transactions:
- Sold OVDPs worth UAH 157.5 million
- Purchased higher-yielding OVDPs worth UAH 168.6 million
Deposit placements:
- UAH 3.0 million — Agroprosperis Bank
- UAH 30.7 million — Sense Bank
- UAH 11.8 million — Ukreximbank
- UAH 29.0 million — Creditvest Bank
Financial results
- Total NAV as of the end of December: UAH 816.7 million
- Fund assets increased by UAH 25.4 million (+3.1%)
- Contributions amounted to UAH 10.8 million
- Pension payments totaled UAH 0.8 million
Performance:
The fund generated 2.2% for the month and 14.1% over the last 12 months.
FREEFLIGHT
The fund continued building a balanced portfolio of foreign-currency and hryvnia instruments, maintaining a focus on controlled risk exposure.
Asset transactions:
- Purchased USD-denominated OVDPs worth USD 120 thousand
- Purchased hryvnia-denominated OVDPs worth UAH 2.5 million
Deposit placements:
- USD 71 thousand — PUMB
- USD 43 thousand — Agroprosperis Bank
- USD 54 thousand — Creditvest Bank
- USD 46 thousand — Tascombank
Financial results
- Total NAV in December: UAH 80.0 million
- Fund assets increased by UAH 1.7 million (+2.2%)
- Contributions exceeded UAH 1.3 million
- Pension payments amounted to UAH 87.6 thousand
Performance:
The fund delivered 0.6% for the month and 3.2% over the last 12 months in US dollars.
