Dear participants of the pension funds OTP Pension and FreeFlight,
We present to your attention the performance results of OTP Capital’s private pension funds and key developments on financial markets in March 2026.
GENERAL ECONOMIC CONDITIONS
March was marked by an escalation of geopolitical tensions in the Middle East. Events in Iran triggered a sharp increase in global energy prices, intensifying inflationary pressure across most economies worldwide. A potential prolonged blockade of the Strait of Hormuz poses significant risks to the global economy and may negatively affect annual inflation indicators.
Against this backdrop, the National Bank of Ukraine adopted a wait-and-see stance, keeping the key policy rate unchanged at 15% in March and pausing the transition toward monetary easing. The regulator estimates a potential additional increase in annual inflation of at least 0.45 percentage points, while a further rise in oil prices could amplify this impact considerably. A detailed assessment of the effects of energy price dynamics across different sectors of the economy is expected to be published by the NBU in April.
HRYVNIA INSTRUMENTS
In March, yields on hryvnia-denominated government bonds (OVDPs) at primary auctions declined to their lowest levels in recent months:
- 1-year: down from 15.32% to 15.15%
- 2-year: 15.85%
- 3-year: down from 16.28% to 16.15%
Interest rates on term deposits in the banking sector remained at February levels following the previous 50 bps decline, ranging between 9% and 14% in hryvnia. Dollar deposit rates remained unchanged at up to 2%, depending on maturity.
The Ministry of Finance of Ukraine continued issuing FX-denominated government bonds in March with a yield of 3.47% in USD, down from 3.8% in February. On the secondary market, yields on FX OVDPs did not exceed 3.4% in USD and 1.5% in EUR.
FOREIGN EXCHANGE MARKET
In March, demand for foreign currency again exceeded supply, leading to a depreciation of the hryvnia against the US dollar from 43.13 to 43.78 UAH/USD. To smooth exchange rate fluctuations, the National Bank of Ukraine significantly increased FX interventions by 59.5% to USD 4.77 billion.
The exchange rate is expected to stabilize within the range of 43.5–44.5 UAH/USD in Q2 2026, assuming no additional external shocks.
EXTERNAL MARKETS AND EUROBONDS
A negative factor for Ukraine’s external debt market in March was the blocking of the EU’s “reparations loan” decision by Hungary, which reduced the attractiveness of Ukrainian Eurobonds. As a result, their prices declined by 8.6%–15% depending on maturity.
RESULTS OF PRIVATE PENSION FUNDS
OTP PENSION
Portfolio
In March, the fund continued managing its portfolio in line with its long-term yield enhancement strategy.
OVDP operations:
- UAH 5.6 million in government bonds (OVDPs) were purchased
Deposit placements:
- UAH 40.1 million — JSC Universal Bank
- UAH 21.0 million — JSC Credit Dnipro Bank
- UAH 14.3 million — JSC UkrEximBank
Financial results
Total NAV (net asset value) as of month-end: UAH 871.4 million
Assets increased by ↑UAH 16.3 million (1.9%)
UAH 10.6 million in contributions were received
UAH 2.1 million in pension payments were made
Return:
The fund’s return in February was 1.0%, and 14.6% over the last 12 months.
FREEFLIGHT
Portfolio
OVDP operations:
During the reporting month, OVDPs worth UAH 0.95 million were purchased for the fund portfolio.
Deposit placements:
- USD 19 thousand — JSC Sense Bank
- USD 40 thousand — JSC PUMB
- USD 80 thousand — JSC Kredytwest Bank
Financial results
Total NAV as of February: UAH 86.6 million
Assets increased by ↑UAH 1.8 million (2.0%)
More than UAH 1.5 million in contributions were received
UAH 306.2 thousand in pension payments were made
Return:
The sharp decline in Eurobond prices negatively impacted performance: –0.7% for March and 1.6% over the last 12 months (in USD).
