Dutch pension fund ABP’s financial position continued to improve in the second quarter of 2023, its latest quarterly funding update has revealed.

Over Q2 2023, ABP returned 1.1 per cent on investments, resulting in available assets increasing by €5bn to €475bn, which the pension fund primarily attributed to strong returns in its equity portfolio.

Furthermore, as interest rates rose by 0.1 per cent in Q2, the pension fund’s liabilities fell by €2bn to €418bn.

This resulted in ABP’s current funding ratio increasing from 111.9 per cent to 113.6 per cent over the quarter.

However, the pension fund’s policy funding ratio, which is the average current funding ratio over the past 12 months, fell from 118.6 per cent to 116 per cent.

ABP noted that the decrease was due to the fact it had relatively high current funding ratios in the second quarter of last year, which have now left the scope of the policy funding ratio.

Commenting on the quarterly update, ABP board chair, Harmen van Wijnen, said: “Our investments are doing well. For the second quarter in a row we booked a positive return. Partly as a result of this, our financial position has improved somewhat.

“It is also good news that the Senate has approved the Future Pensions Act. Now we can really get started.

“We had already started preparing for the transfer of pensions to the new system. And we will continue with that, together with our contractor, full of enthusiasm.

“In the interest of the participants, we have decided to take a little more time. Our relocation plan now focuses on January 1, 2027. This way we can make this relocation even more careful and controlled.”

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