Dutch pension fund PFZW returned 8 per cent on its investments in 2024, a slight decrease from 8.7 per cent in 2023, its annual report has revealed.

During the year, PFZW’s invested assets grew to €259bn in 2024, up from €237.6bn in 2023, with listed shares performing particularly well in 2024.

According to the results, the pension fund’s current funding ratio increased from 106.1 per cent in 2023 to 109.8 per cent in 2024.

Its indexation of pensions as of 1 January 2024 was 4.8 per cent compared to 6 per cent on 1 January 2023.

The fund’s participant trust, of which PFZW's target is 57 per cent, fell by 1 per cent between 2023 and 2024, from 56 per cent to 55 per cent.

Meanwhile, its pension administration costs per participant in euros decreased from €65.75 in 2023 to €65.32 in 2024.

The pension fund’s investments that were in line with the Sustainable Development Goals increased from 19.7 per cent of its portfolio to 21.9 per cent in 2023, closer to its target of a 30 per cent allocation by 2030.

Its absolute CO2 reduction compared to the 2019 benchmark fell to -45 per cent in 2024, with its target being -50 per cent by 2030.

The fund said it achieved a good result over the past year, as its average return since PFZW was founded in 1971 is 7.5 per cent per year.

Commenting in the foreword of the report, PFZW chair of the board, Joanne Kellermann, said: “In addition to maintaining and further strengthening the trust of our participants, we naturally strive for a good pension. This goes beyond achieving good financial returns.

“It is also about ensuring that our participants can enjoy their pensions in a liveable world. That is what we want to contribute to with our investments. Financial and social returns, therefore, go hand in hand. This is also an important pillar of our investment policy for 2030.

“The core of this policy is that we invest for the long term, spread the risks, and make a valuable contribution to a more sustainable world with our investments.

“We are always looking for a balance between good returns, risks, and sustainability in our investments. That is why, for example, we stopped investing in oil and gas companies without a convincing climate plan in 2024.  

“Together, we have achieved a lot in 2024 in the transition to the new pension scheme, but we are not there yet. We are engaged in a marathon and will enter the final sprint in 2025. I have full confidence that we will reach the finish line with flying colours.”

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