A decrease in liabilities boosted the funding ratio of Dutch pension scheme ABP to 115.6 per cent, despite market turmoil leading to a poor investment performance.

Publishing its result for the first quarter of 2025, the Dutch scheme for those working in the public sector, said its liabilities decreased due to a fall in interest rates.

ABP’s current coverage ratio rose by 3.9 percentage points from 111.7 per cent at the end of 2024 to 115.6 per cent at the end of March. In addition, its policy funding ratio, which is the average of all current funding ratios over 12 months, rose to 113.8 per cent.

However, ABP posted an investment return of -0.4 per cent in the first quarter, as financial markets suffered in the first three months of the year. Regarding assets, it said equities were in the red, while corporate bonds posted positive returns.

Over the longer term, ABP has achieved a 6 per cent return per year over the past 20 years.

Commenting, ABP chair of the board, Harmen van Wijnen, said: "Because of the turmoil, it was not a good investment quarter; returns were negative. But ABP protects pension assets. In fact, our portfolio is built to cope with shocks. We invest across many countries and different types of investments, and with a long-term view.

“When one investment underperforms, another tends to do better and vice versa. By doing so, we dampen the peaks and troughs and are more resilient to fluctuations. Of course, we monitor the situation closely and make adjustments where necessary."

The pension fund is planning to transition to the new Dutch pension system on 1 January 2027 and is one of several pension funds that have been critical of a proposed amendment to the Future Pensions Act (Wtp) by the Dutch political parties New Social Contract (NSC) and Farmer-Citizen Movement (BBB).

The parties want to give individuals the power to decide whether or not their pension should be transferred to the new system. Along with several other schemes, ABP has warned that such a move would lead to an additional €18bn in costs (based on a calculation by PwC) if the two systems continue side by side.

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