ABS Partners Real Estate LLC
01/29/2026 | Press release | Archived content
Quarterly Report Q4 2025
Quarterly report Q4 2025
Press release
29 januari 2026
Key points of the annual report:
- decision on pension increase: 2.84%;
- current coverage ratio at year-end 2025: 123.5% (year-end 2024 111.7%);
- investment result 2025: -1.6%;
- investment result Q4 2025: +0.2%;
- available capital as at year-end 2025: € 533 billion;
- liabilities as at year-end 2025 € 432 billion (year-end 2024 € 486 billion).
In 2025, ABP's coverage ratio rose significantly to 123.5% at the end of the year, the main reason being the increased interest rates. On the other hand, it was not a good investment year, due to the turmoil in the financial markets caused by trade tariffs and wars in Europe and beyond. The return was negative in the first quart of 2025, but it recovered in the following quarters. The investment result for the whole of 2025 was -1.6%, mainly due to rising interest rates and a falling US dollar. Liabilities also fell due to higher interest rates. By the end of 2025, ABP was therefore still better off than at the beginning of the year, and as a result, we were able to increase pensions by 2.84%.
Harmen van Wijnen, Chair of the Board of Trustees: "For ABP, it was a year with two sides of the same coin: the investments achieved a negative result for the whole of 2025, mainly due to increased interest rates and the falling US dollar. On the other hand, the increased interest rates were what increased the coverage ratio every quarter, up to 123.5% at the end of 2025. It was a turbulent year in the financial markets. As a long-term investor, ABP keeps its cool in turbulent times, and the fund invests globally in different types of investments with a diversified portfolio, to ensure the most stable pension possible with the greatest purchasing power for our participants. ABP was able to increase pensions by 2.84% this year because, despite everything, we are in a better position. If this continues, it will be beneficial because a healthy financial position means a good starting point for the transition to the new pension rules on 1 January 2027. We are on track."
What can ABP participants expect?
In January 2026, ABP increased pensions by 2.84%. As a result, pensions are growing fully in line with the price increases (consumer price index: CPI) published by Statistics Netherlands in the period from September 1 (2024) to September 1 (2025). ABP was able to increase pensions because of its healthy financial position and because we were able to make use of the more flexible rules imposed by the government. This was allowed because ABP wants to transfer to the new pension scheme. The increase applies to pensioners and everyone who accrues or has accrued a pension with ABP.
ABP funding ratios in 2025
In 2025, the current funding ratio rose from 111.7% to 123.5%. The policy funding ratio (the average of the current funding ratios over the past 12 months) increased by 5.2%, from 113.1% to 118.3%.
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
| Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | |
| Current funding ratio (%) | 111.7 ** | 115.6 | 117.5 | 121.7 | 123.5 |
| Policy funding ratio (%) | 113.1 | 113.8 | 113.7 | 115.3 | 118.3 |
| Available assets (€ billion) * | 542 | 520 | 522 | 532 | 533 |
| Liabilities (€ billion) | 486 | 450 | 444 | 438 | 432 |
| Actuarial interest rate (%) | 2.1 | 2.6 | 2.7 | 2.8 | 3.2 |
* The main reasons for the changes in available assets are achieved investment returns, contributions, and pension payments.
* In the above table, some key figures for Q4 2024 (in italics) have been adjusted following the adoption of and in accordance with the final financial statements for 2024. Some adjustments can also be seen in the appendix 'composition and return of the investment portfolio.
Graphic transcribed into a table
Development funding ratio
| Current funding ratio | Policy funding ratio | |
| January 2025 | 113.9 | 113.4 |
| February 2025 | 114.6 | 113.6 |
| March 2025 | 115.6 | 113.8 |
| 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 |
Appendix: Notes on return on ABP Investment Portfolio
| Weighting in % | Return in % in Q4 2025 | Return in billion € in Q4 2025 | Return in % in YTD 2025 | Return in billion € in YTD 2025 | Return in % in 2024 | Return in billion € in 2024 | |
| Fixed Income (total) | 40.0 | 0.2 | 0.4 | -0.2 | -0.5 | -0.2 | -0.3 |
| Treasuries | 10.1 | 0.2 | 0.1 | 0.9 | 0.5 | 0.6 | 0.3 |
| Treasuries Long Duration | 12.7 | -1.1 | -0.8 | -6.7 | -4.6 | -6.4 | -4.4 |
| Credits | 10.6 | 0.5 | 0.3 | 4.2 | 2.3 | 3.1 | 1.7 |
| Emerging market debt | 4.8 | 3.4 | 0.9 | 4.5 | 1.1 | 6.4 | 1.8 |
| Dutch Mortgages | 1.9 | 0.2 | 0.0 | 2.5 | 0.2 | 6.8 | 0.3 |
| Equity (total) | 31.2 | 2.7 | 4.5 | 6.2 | 10.7 | 21.9 | 29.9 |
| Equity Developed | 26.9 | 2.2 | 3.1 | 3.9 | 6.2 | 23.6 | 25.2 |
| Equity Emerging | 4.2 | 5.7 | 1.4 | 20.2 | 4.5 | 15.8 | 4.7 |
| Alternative investments (total) | 19.5 | 3.5 | 3.5 | 0.2 | 0.1 | 13.0 | 12.8 |
| Private Equity | 8.4 | 3.1 | 1.4 | -4.2 | -2.1 | 11.8 | 5.3 |
| Commodities * | 4.3 | 7.0 | 1.5 | 10.0 | 2.1 | 19.7 | 4.3 |
| Infrastructure | 6.2 | 2.0 | 0.7 | 1.6 | 0.5 | 10.4 | 3.0 |
| Hedge funds (in winddown) ** | 0.5 | -0.5 | 0.0 | -11.2 | -0.4 | 6.6 | 0.3 |
| Real Estate | 9.2 | -0.4 | -0.2 | -5.1 | -2.6 | 5.5 | 2.7 |
| Portfolio return (before overlay) | 99.9 | 1.5 | 8.2 | 1.4 | 7.6 | 9.0 | 45.1 |
| Overlay *** (total) | 0.1 | -1.4 | -7.2 | -3.0 | -16.1 | -0.7 | -3.4 |
| Interest hedge *** | -1.3 | -6.9 | -4.0 | -21.7 | 0.2 | 1.0 | |
| Currency hedge *** | 0.0 | -0.2 | 1.0 | 5.6 | -0.9 | -4.5 | |
| Other *** | 0.0 | -0.1 | 0.0 | -0.1 | 0.0 | 0.1 | |
| Total | 100.0 | 0.2 | 1.0 | -1.6 | -8.5 | 8.4 | 41.7 |
* Commodities have 100% USD exposure. Expressed in USD, the return on investments for Q4 is +7.0%
** Hedge funds have 100% USD exposure. Expressed in USD, the return on investments for Q4 is -0.5%
*** Contribution to total return on investments
Explanation of return on investment portfolio
ABP's investment portfolio achieved a return (before overlay) of +1.5% for the fourth quarter of 2025. This is an investment result of +8.2 billion euros. The total return (including overlay) for the fourth quarter is +0.2%, which translates to +1.0 billion euros.
ABS Partners Real Estate LLC published this content on January 29, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on March 23, 2026 at 18:00 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]