Germany’s Bavarian Pension Fund (BVK) has reported a preliminary capital-weighted net investment return of 3.4 per cent for 2025.

The figure effectively remains at the previous year’s level, and ensures that BVK achieves its central investment objective and exceeds the interest rate requirements of the pension schemes it manages.

BVK manages the operations of 12 legally independent professional and municipal pension institutions with a total of around 2.7 million insured persons and pension recipients, approximately €6bn in annual contribution and levy income, and around €4.5bn in annual pension payments.

It currently manages a total investment volume of around €117bn (market value) across all institutions.

“We deliver what we promised – consistent and robust returns,” BVK CEO, Axel Uttenreuther, said.

“At the same time, we are consistently addressing the well-known economic challenges affecting certain US real estate investments. We announced a comprehensive programme of measures for this purpose last year. Even though some are currently attempting to portray a different picture in public, the retirement provision of our insured members is and will remain secure.”

In December last year, BVK disclosed its estimates of potential loss risks arising from certain US real estate investments.

It reconfirmed that despite these losses, there will be no impact on pension commitments to members, insured persons and beneficiaries. It also stated that individual losses within the broadly diversified investment portfolio will be offset by other investments.

As part of the announced package of measures, BVK will, among other things, further optimise the investment, risk management and compliance processes already in place during the current year.

It plans to publish its full annual results at the end of the first quarter.

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