Several Dutch pension funds have published funding updates for their schemes, which revealed that whilst funding ratios have improved, there were negative returns on investments amid the introduction of the US government’s trade tariffs.

Pensioenfonds PGB reported a slight improvement in its financial situation in the first quarter of 2025, with its policy funding ratio increasing by 1 per cent from 116.2 per cent on 31 December 2024 to 117.2 per cent on 31 March 2025.

The fund credited this increase to an increase in interest rates, which means Pensioenfonds PGB need less cash money for pensions now and in the future.

This increase in interest rates offset the negative return on the fund’s investments in the first quarter as the return on the investments was -5.7 per cent over the first quarter of 2025.

Meanwhile, the fund's current coverage ratio rose from 116.7 per cent on 31 December to 118 per cent on 31 March 2025. This concerns the UFR coverage ratio.

Pensioenfonds PGB’s quarterly results also showed the investments to hedge the interest rate risk (matching portfolio) returned -8.3 per cent over the first quarter of 2025, while the investments to achieve an extra return, such as equities, achieved a return of 3.8 per cent over the first quarter.

In addition to this, Dutch pension fund BpfBOUW quarterly result saw its funding ratio rise to 129.7 per cent due to increased interest rates.

The fund’s policy coverage ratio grew by 0.7 per cent to 127 per cent at the end of the first quarter of 2025.

According to the results, BpfBOUW achieved a negative total return on its investments in the first three months of 2025, due to the turmoil in the stock markets due to the US government's trade tariffs. This resulted in a negative total return of -4.8 per cent.

Assets also decreased in the first quarter of 2025 due to the negative total return on investments.

Meanwhile, the total value of pension liabilities fell by 7.8 per cent even more sharply due to the increased interest rates.

However, BpfBOUW did achieve a positive return on Dutch real estate and a slightly positive result on international real estate.

---