ABS Partners Real Estate LLC
04/23/2026 | Press release | Distributed by Public on 04/22/2026 16:17
Quarterly Report Q1 2026
Quarterly report Q1 2026
Press release
23 april 2026
- Current funding ratio fell to 119.1 per cent in Q1
- First quarter investment return: -0.5 per cent (-€ 2.8 billion)
- Pension liabilities rose to € 445 billion in Q1
- Policy funding ratio rises to 119.9 per cent in Q1
ABP's financial position in the first quarter of 2026 was slightly worse than in the previous quarter. The current funding ratio fell from 123.5 per cent at the end of 2025 to 119.1 per cent at the end of March 2026. The lower interest rates caused the fund's pension liabilities to increase to € 445 billion. The investments posted a slightly negative return of -0.5 per cent in the first quarter. As a result, ABP's assets amounted to € 530 billion.
Chair of the Board Harmen van Wijnen: 'The turmoil in the Middle East made it a difficult first quarter. January and February were good investment months, but news of the war in Iran led to declines in financial markets.
Peace and security in the world ensure better investment results for pensions. At the same time, ABP's investment portfolio is designed to protect investments and therefore pension assets in a turbulent world. We diversify our investments across many countries and different types of investments and with a long-term perspective. When one investment category underperforms, another usually performs better, and vice versa. This makes us more resistant to fluctuations.
ABP is well on track to transition to the new pension scheme in 2027. ABP would like to move to the new pension scheme with a funding ratio of at least 110 per cent. At this time, the funding ratio is therefore high enough (119.1 per cent). We will keep a close eye on this as we move closer to switching to the new pension scheme.'
What can ABP participants expect?
In January this year, ABP increased pensions by 2.84 per cent. This fully offset the price increase from 1 September 2024 to 1 September 2025 (2.84 per cent). In the previous four years, ABP was able to increase pensions in full almost every year. This was possible because ABP was able to make use of the relaxed rules of the government, because we want to transfer to the new pension scheme on 1 January 2027. In the transition to this new pension scheme, we will distribute ABP's total pension assets. We will calculate exactly how much each pension is worth in total and how much money will be added to the joint buffer. How much we can distribute will depend mainly on the funding ratio as at 31 December 2026. The higher the funding ratio, the more we will be able to distribute. Conversely, the lower the funding ratio, the less we will be able to distribute. If the funding ratio as at 31 December 2026 is above 109 per cent, we will be able to give compensation for increases that we could not always give in the past. In that case, we can also give everyone an extra increase.
ABP's first quarter funding ratios
In the first quarter of 2026, the current funding ratio fell from 123.5 per cent to 119.1 per cent. This was due to lower interest rates. The policy funding ratio (the average of the current funding ratios over the last 12 months) increased by 1.6 per cent in the first quarter: from 118.3 per cent to 119.9 per cent.
How did ABP's investments and liabilities fare in 2025?
ABP's available assets decreased from € 542 billion at year-end 2024 to € 533 billion at year-end 2025. ABP achieved a return of -1.6% (- € 8.5 billion) for 2025 as a whole. In the fourth quarter, the return was +0.2%. Equity markets generally had a good year. However, other asset classes performed worse. The main causes were rising interest rates and the US dollar, which fell almost 12% against the euro in 2025. The actuarial interest rate rose to 3.2% in the fourth quarter. As a result, the value of the pensions that ABP must pay out now and in the future fell by € 6 billion in the fourth quarter to € 432 billion at the end of 2025.
Key figures
| Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | |
| Current funding ratio (%) | 115.6 | 117.5 | 121.7 | 123.5 | 119.1 |
| Policy funding ratio (%) | 113.1 | 113.7 | 115.3 | 118.3 | 119.9 |
| Available assets (€ billion) * | 520 | 522 | 532 | 533 | 530 |
| Liabilities (€ billion) | 450 | 444 | 438 | 432 | 445 |
| Actuarial interest rate (%) | 2.6 | 2.7 | 2.8 | 3.2 | 3.0 |
* The main reasons for the changes in available assets are achieved investment returns, contributions, and pension payments.
Graphic transcribed into a table
Development funding ratio
| Current funding ratio | Policy funding ratio | |
| April 2025 | 111.2 | 113.6 |
| May 2025 | 115.2 | 113.6 |
| June 2025 | 117.5 | 113.7 |
| July 2025 | 119.7 | 114.2 |
| August 2025 | 120.4 | 114.7 |
| September 2025 | 121.7 | 115.3 |
| October 2025 | 123.6 | 116.2 |
| November 2025 | 122.2 | 117.3 |
| December 2025 | 123.5 | 118.3 |
| January 2026 | 123.0 | 119.0 |
| February 2026 | 122.2 | 119.7 |
| March 2026 | 119.1 | 119.9 |
Appendix: Notes on return on ABP Investment Portfolio
| Weighting in % | Return in % in Q1 2026 | Return in billion € in Q1 2026 | Return in % in YTD 2026 | Return in billion € in YTD 2026 | Return in % in 2025 | Return in billion € in 2025 | |
| Fixed Income (total) | 41.0 | -0.3 | -0.6 | -0.3 | -0.6 | -0.2 | -0.5 |
| Treasuries | 10.7 | -0.5 | -0.3 | -0.5 | -0.3 | 0.9 | 0.5 |
| Treasuries Long Duration | 12.9 | 0.4 | 0.3 | 0.4 | 0.3 | -6.7 | -4.6 |
| Corporate bonds Investment Grade* | 8.3 | -1.0 | -0.4 | -1.0 | -0.4 | 4.2 | 2.3 |
| Corporate bonds High Yield | 1.4 | -1.3 | -0.1 | -1.3 | -0.1 | - | - |
| Private debt | 1.3 | -0.1 | 0.0 | -0.1 | 0.0 | - | - |
| Emerging market debt | 4.6 | -0.2 | 0.0 | -0.2 | 0.0 | 4.5 | 1.1 |
| Mortgages | 1.9 | -0.3 | 0.0 | -0.3 | 0.0 | 2.5 | 0.2 |
| Equity (total) | 30.5 | -3.1 | -4.9 | -3.1 | -4.9 | 6.2 | 10.7 |
| Equity Developed | 26.7 | -4.1 | -5.8 | -4.1 | -5.8 | 3.9 | 6.2 |
| Equity Emerging | 3.8 | 2.8 | 0.9 | 2.8 | 0.9 | 20.2 | 4.5 |
| Alternative investments (total) | 18.8 | 3.1 | 3.1 | 3.1 | 3.1 | 0.2 | 0.1 |
| Private Equity | 8.6 | 0.7 | 0.3 | 0.7 | 0.3 | -4.2 | -2.1 |
| Commodities * | 3.2 | 7.7 | 1.6 | 7.7 | 1.6 | 10.0 | 2.1 |
| Infrastructure | 6.5 | 3.1 | 1.0 | 3.1 | 1.0 | -11.2 | 0.4 |
| Hedge funds (in winddown) ** | 0.6 | 3.0 | 0.1 | 3.0 | 0.1 | 0.0 | 0.0 |
| Real Estate | 9.5 | 1.6 | 0.8 | 1.6 | 0.8 | -5.1 | -2.6 |
| Portfolio return (before overlay) | 99.7 | -0.3 | -1.7 | -0.3 | -1.7 | 1.4 | 7.6 |
| Overlay *** (total) | 0.3 | -0.2 | -1.1 | -0.2 | -1.1 | -3.0 | -16.1 |
| Interest hedge *** | 0.1 | 0.5 | 0.1 | 0.5 | -4.0 | 21.7 | |
| Currency hedge *** | -0.2 | -1.3 | -0.2 | -1.3 | 1.0 | 5.6 | |
| Other *** | -0.1 | -0.3 | -0.1 | -0.3 | 0.0 | -0.1 | |
| Total | 100.0 | -0.5 | -2.8 | -0.5 | -2.8 | -1.6 | -8.5 |
* Result based on Corporate bonds total, new division commenced Q4 2025
** Commodities has 100% USD exposure. Expressed in USD, the return on investments for Q1 is 5.5%
*** Contribution to total return on investments
Explanation of return on investment portfolio
ABP's investment portfolio achieved a return (before overlay) of -0.3% for the first quarter of 2026. This is an investment result of -€ 1.7 billion euros. The total return (including overlay) for the fourth quarter is -0.5%, which translates to -€ 2.8 billion.
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