Pensioenfonds PGB recorded a 0.1 per cent annual return in 2025 following a “turbulent year” for investments, which it attributed to import tariffs, wars, and global tensions.

According to the fund's 2025 fourth quarter (Q4) results, the Dutch fund’s policy coverage ratio, the average of the funding ratios over the past 12 months, stood at 123.9 per cent at the end of Q4 2025, an increase of 7.7 percentage points compared to the end of 2024.

Meanwhile, the fund's current coverage ratio, the ratio between assets and liabilities, rose to 131.5 per cent in Q4 2025, an increase of 14.8 percentage points compared to the end of 2024, when it stood at 16.7 per cent. This concerns the UFR coverage ratio.

In addition to this, the fund’s return on investments for Q4 was -0.5 per cent.

The return on investments in its matching portfolio, which includes investments to hedge the interest rate risk, was -14.5 per cent in 2025, while the return of the portfolio, which mainly consists of equities, achieved a return of 11.6 per cent over 2025, largely driven by global equity markets.

In the first quarter of 2025, equities performed negatively and, in early April 2025, equities also fell following US President, Donald Trump's, announcements on trade tariffs.

Following the conclusion of agreements with various countries, the likelihood of agreements with others, and the (temporary) postponement of tariffs for several countries, equities rose.

The fund explained that the second quarter of 2025 proved to be a positive quarter for equities, and the third and fourth quarters also saw a positive climate for equities.

The results also showed that Pensioenfonds PGB’s invested assets totalled €34.6bn at the end of 2025, a decrease of €0.3bn compared to the end of 2024.

The fund’s liabilities also decreased from €30.1bn at the end of 2024 to €24.5bn at year-end 2025, which can be attributed to a rise in De Nederlandsche Bank’s interest rate.

The results also revealed that, in October 2025, the Pensioenfonds PGB’s board decided to increase pensions by 1.7 per cent from 1 January 2026 and to end its recovery plan on the same date.

The decision to end its recovery plan was due to the fund's policy coverage ratio being above the required capital requirements at the end of Q4 2025.
 
Commenting on the update, Pensioenfonds PGB chairman of the board, Hans Veltkamp, said: "In 2025, our coverage ratio increased compared to the end of 2024, ultimately ending at 123.9 per cent. This was mainly due to the rise in interest rates.

“The past year also saw a period of unrest for pension funds. President Trump's import tariffs caused a lot of movement on the stock market. Wars and tensions in various places around the world also caused unrest. That had an impact on our investment result. The rise in interest rates was not good for our investments that protect against falling interest rates.”

However, Veltkamp noted that the fund’s shares did “well” last year and overall, its investments ended with a small plus of 0.1 per cent over the year 2025.

“The bottom line is that Pensioenfonds PGB is in good financial shape. And that is why we were able to increase pensions by 1.7 per cent with effect from 1 January 2026,” he said.

“We took this decision carefully, keeping the interests of all our participants in mind. We're pleased we were able to increase pensions for the fifth year in a row, but we also understand that some participants had hoped for more.

“We're preparing for the transition to the new pension system and expect to switch on 1 January 2027, and we'll do so with the same care with which we make our financial choices.”

---