The Dutch pension fund for the construction industry, BpfBOUW, achieved a 5.2 per cent return in the second quarter (Q2) of 2026, bringing the total half-year return to 5.7 per cent, its interim results have revealed.

The results also showed that the fund's surplus return was 4.2 per cent in Q2, driven by positive market returns, while the year-to-date surplus return stood at 2.4 per cent.

The fund increased pensions by 20.8 per cent on 1 January 2026. At the end of Q2, the potential pension increase from 1 January 2027 was 0.57 per cent, although BpfBOUW said the final figure will be decided later this year.

The results also reported that the return of the matching portfolio, which includes fixed-income securities such as government bonds, investment-grade credit and mortgages, as well as overlay matching, was 4 per cent in Q2.

Meanwhile, the return portfolio, which includes equities, fixed-income securities such as alternative credit, high-yield credit and emerging-market debt, as well as real estate, alternative investments and overlay matching, returned 6 per cent at the end of Q2.

BpfBOUW explained that, following a turbulent start to the year, financial markets recovered in Q2. It noted that tensions in the Middle East eased, while investors remained positive about developments in artificial intelligence (AI). The oil price also fell again.

The fund said its Q2 return was driven primarily by equities, which benefited from the broader AI rally, while other asset classes, such as alternative investments and property, also delivered positive returns.

Fixed-income categories also made a positive contribution to the Q2 return, due to a fall in long-term interest rates. Meanwhile, the US dollar strengthened slightly, resulting in a negative outcome for the currency hedging in the overlay portfolio.

Commenting on the results, BpfBOUW chair on behalf of the employers, Leon Ceelen, said: “A positive quarter is good news, but pensions require a longer-term perspective. Under the new system, developments become apparent more quickly.

“As the board, we therefore look not only at the return for a single quarter, but at the overall picture: returns, interest rates, buffers and the implications for different groups of members.”

Adding to this, BpfBOUW chair on behalf of members and pensioners, Eline Lundgren, said it is particularly important for members and pensioners that their pensions are carefully monitored.

She said that the new Dutch pension system provides greater insight, but sometimes also greater volatility. This, she said, is why the fund continues to monitor what the figures mean for people accruing a pension or already receiving one.

BpfBOUW switched to the new pension system on 1 January 2026. Under the new system, total assets are still invested collectively, and the investment results are distributed among pension pots, collective reserves and provisions according to predetermined rules.

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