Transaction costs
Transaction costs are costs that must be incurred to execute purchases and sales and to process them administratively.
20240.07%
20250.06%
Decrease/growth
-0.01%
To be able to pay out pensions every month, pension premiums alone are not enough. A pension fund must invest. By investing, we make a profit. That is the return. In the long term, investments yield a higher return than a savings account. The return indicates what the investment has yielded and is expressed as a percentage.
Investment portfolio
2025
2024
Total invested assets (in € mln)
7,735
7,342
Total invested assets are shown in millions of euros. The total amount for 2025 is compared with 2024.
| Category | mln. euro (2025) | Weight | Strategic weight |
|---|---|---|---|
| Matching portfolio | 3,810 mln. euro | 49.2% | 49.5% |
| Interest overlay | -149 mln. euro | -3.9% | — |
| Nominal government bonds | 1,312 mln. euro | 34.4% | 32.5% |
| Inflation-linked bonds | 929 mln. euro | 24.4% | 23.3% |
| Investment grade credits | 676 mln. euro | 17.8% | 16.9% |
| Mortgages | 982 mln. euro | 25.8% | 25.8% |
| Ground lease | 60 mln. euro | 1.6% | -0.4% |
| Return portfolio | 3,853 mln. euro | 49.8% | 50.5% |
| Currency overlay | 8 mln. euro | 0.2% | — |
| Equities | 1,693 mln. euro | 43.9% | 43.9% |
| High-yield bonds | 761 mln. euro | 19.7% | 19.8% |
| Listed real estate | 316 mln. euro | 8.2% | 8.3% |
| Alternative investments | 1,075 mln. euro | 27.9% | 27.9% |
| Cash | 58 mln. euro | 0.8% | 0% |
| PPS | 14 mln. euro | 0.2% | — |
| Total | 7,735 mln. euro | 100% | 100% |
Pensioenfonds PDN has split its investments into a matching and a return portfolio.
Matching portfolio
The objective of the matching portfolio is to achieve a favorable risk/return profile with high-credit-quality bonds. This aims for a high degree of certainty. With this, we hedge part of the interest rate risk.
Return portfolio
The objective of the return portfolio is to achieve sufficient return to realize the indexation ambition. Through an active policy, an attempt is made within the permitted risk budget to achieve extra return after costs or to realize a lower risk profile.
To reduce risk, Pensioenfonds PDN spreads its investments across various categories. These include, for example:
Inflation-linked bonds▾
These are loans to (mainly) governments, where the interest and principal repayments are linked to inflation. This means that you are compensated for realized inflation and that a real return is thereby secured.
Investment grade credits▾
These are loans to companies with good creditworthiness. The term of these loans is generally relatively short (4-5 years). Due to the good creditworthiness, the probability that the loans including interest will be repaid is very high and the risk is low.
Bonds and loans (fixed-income securities)▾
This involves lending money worldwide to governments and companies. The return (the so-called interest payment) is generally stable. In addition, Pensioenfonds PDN also invests in Dutch private mortgages.
Equities▾
This involves taking a global stake in the capital of a company. In the longer term, a higher return can be expected than on bonds, but the risk is relatively high.
Alternative investments▾
This is an investment category from which an attractive return is expected in the medium term. The investments within this sub-portfolio therefore aim for an attractive return without being dependent on benchmarks (market indices, such as the AEX). This includes, for example, investments in microfinance, infrastructure, and commodities.
Real estate▾
There are two ways to invest in real estate: directly (houses, shops and offices) and indirectly (shares in real estate funds). Pensioenfonds PDN invests worldwide only in indirect real estate.
Currency overlay▾
Investments are made in various currencies. Because the currencies can rise or fall in value relative to the euro, the return of the internationally diversified portfolio consists partly of currency returns. To limit the impact of currencies on the fund's return in euros, a currency overlay is used. In doing so, the fund hedges itself against currency movements.
Interest rate overlay▾
The interest rate sensitivity of the pension liabilities differs from that of the investments. As a result, interest rate risk is incurred. To limit this risk, a portion of the interest rate risk is hedged with fixed-income securities and derivatives. The interest rate overlay partly determines a portion of the fund's return.
Investment return (%)
| Category | 2025 | Benchmark (%) |
|---|---|---|
| Total portfolio | 1.6% | 1.1% |
| Matching portfolio | -8.8% | -9.3% |
| Return portfolio | 13.4% | 12.9% |
You do not need to be alarmed by a negative return. Pensioenfonds PDN invests with a long-term horizon. Fluctuations are expected to be compensated over the years.\n\nAt the end of 2025, the 5-year average net return is 2.3% on an annual basis.\nThe 10-year average net return of Pensioenfonds PDN at the end of 2025 is 3.9% on an annual basis.
Asset management costs
Asset management costs are costs for managing the investments, expressed as a percentage of the average invested assets.
20240.42%
20250.39%
Decrease/growth
-0.03%