Andorra Pension Fund Hits 4.02% Return in 9M 2025, Beats Peers

Managers of Andorra's pension reserve fund have reported strong performance through the first nine months of 2025, with returns exceeding those of comparable European funds despite a slight shortfall against their benchmark index.

The quarterly supervision report on fund management and budget execution, submitted to the Consell General and covering the third quarter ending 30 September, shows the investment portfolio reached €1,917.9 million. Gains of €73.68 million delivered a 4.02% return, a figure that has since improved with October and November data.

This outperformed the average for similar mixed funds in the eurozone (3.17% for those with 25-35% equity exposure), the Mitja Caisse benchmark of 100 funds held at UBS (3.54%), and Italian mixed pension funds (3.6%). Both fixed income and equities contributed positively, the report states.

The benchmark index stood at 4.15%, leaving the fund 0.13 percentage points behind. Managers note the gap remains narrow and highlight superior results against peer entities.

Supervision of five asset managers—three linked to Andorran banks (Andbank, Creand, MoraBanc) and two foreign firms (Amundi, Natixis)—plus internal portfolios, identified 28 minor mandate breaches in the period, up from four for all of 2024. Three stemmed from active manager decisions or faulty pre-trade controls on new mandates; the remaining 25 arose from asset value fluctuations or credit rating drops.

All were resolved swiftly before quarter-end, with no impact on the overall portfolio strategy due to broad asset diversification. If losses occur, managers must reimburse them, the report emphasises.