Dear participants of the OTP Pension and FreeFlight non-state pension funds,
We invite you to review the performance results of OTP Capital’s non-state pension funds for January 2026
GENERAL ECONOMIC SITUATION IN UKRAINE
The beginning of 2026 marked the National Bank of Ukraine’s transition toward a gradual easing of monetary policy. Given that inflation in 2025 stood at 8.0%, significantly below the regulator’s forecast (9.2%), as well as the approval of long-term EU financial support amounting to EUR 90 billion for 2026–2027 (Ukraine Support Loan), the NBU’s Monetary Policy Committee decided to cut the key policy rate by 0.5 percentage points to 15.0%.
The NBU’s baseline macroeconomic forecast for 2026 envisages a further gradual reduction in the key policy rate. At the same time, the regulator emphasizes increased risks related to damage to energy infrastructure, which puts additional pressure on business costs and limits production capacity.
HRYVNIA AND FOREIGN-CURRENCY INSTRUMENTS
In January, yields on hryvnia-denominated domestic government bonds (OVDPs) at primary auctions began to decline amid expectations of further monetary easing and strong investor demand:
- 1-year — decreased from 16.35% to 16.19%
- 2-year — decreased from 17.10% to 16.91%
- 3-year — decreased from 17.80% to 17.44%
Interest rates on time deposits remained unchanged at 10.5–14.5% in hryvnia and up to 2% in US dollars, depending on the term.
In January, the Ministry of Finance did not place any foreign-currency-denominated OVDPs on the primary market. On the secondary market, yields on foreign-currency OVDPs did not exceed 3.4% in US dollars and 2.2% in euros.
Demand for foreign currency was elevated during the first half of the month, leading to a temporary weakening of the hryvnia to UAH 43.59/USD. Subsequent NBU interventions and the exhaustion of demand supported a strengthening of the hryvnia toward the end of the month. Overall, the official exchange rate weakened by 1.6% in January, from UAH 42.23 to UAH 42.89 per USD. A moderate and controlled depreciation to UAH 43.5–44.0 per USD is expected by the end of Q1 2026.
The EU’s decision to provide financial support, along with intensified diplomatic engagement within the so-called “Coalition of the Willing,” positively affected investor sentiment. As a result, Ukrainian Eurobonds increased in price by 4.8–5.5% in January, reaching record levels depending on maturity.
RESULTS OF NON-STATE PENSION FUNDS
OTP Pension
Fund Portfolio
In January, the fund carried out planned portfolio rebalancing with a focus on extending the maturities of government bonds and increasing future returns.
OVDP Transactions:
- Sold OVDPs totaling UAH 25.1 million
- Purchased OVDPs totaling UAH 26.3 million with longer maturities and significantly higher yields
Deposit Placements:
- UAH 4.0 million — Agroprosperis Bank
- UAH 2.8 million — Universal Bank
Financial Results
- Total NAV as of end-January: UAH 839.3 million
- Fund assets increased by UAH 22.5 million (+2.8%)
- Contributions amounted to UAH 8.5 million
- Pension payments totaled UAH 0.5 million
Performance:
The fund generated a return of 1.5% in January and 14.2% over the last 12 months.
FreeFlight
The fund continued to implement a conservative strategy focused on foreign-currency assets and risk control.
Asset Transactions
During the reporting month, transactions were carried out exclusively within the deposit portion of the portfolio.
Deposit Placements:
- USD 57.6 thousand — Tascombank
Financial Results
- Total NAV as of end-January: UAH 82.8 million
- Fund assets increased by UAH 2.7 million (+3.3%)
- Contributions exceeded UAH 1.4 million
- Pension payments amounted to UAH 55.5 thousand
Performance:
The fund delivered a return of 0.3% in US dollars in January and 2.9% in US dollars over the last 12 months.
