Andorra Pension Fund Rebounds to €2 Billion in April, Posts Positive YTD Return

Andorra's pension reserve fund (FRJ) rose to €2.0047 billion at the end of April, recovering €53 million from March's low of €1.951 billion and shifting year-to-date returns to a positive 1.6%.

The rebound followed March's 3% drop from €2.012 billion, triggered by the outbreak of conflict in the Middle East, including US and Israeli strikes on Iran, which fueled market uncertainty. April's gains stemmed from calming tensions, particularly advancing negotiations to end the regional war. Equity markets performed strongly amid solid corporate earnings that bolstered macroeconomic confidence, while fixed-income assets benefited from narrowing credit spreads.

The portfolio allocation remained stable at 58.7% fixed-income and monetary holdings, 32.1% equities, and 9.2% other assets.

Long-term performance strengthened: 12-month returns reached 8.5%, five-year returns hit 20.1%, and 10-year returns stood at 39.9%. Since inception in 2012, the fund's cumulative return of 51.8% has outpaced Andorra's inflation of 30.5%, fulfilling its legal mandate to preserve purchasing power. Fund managers described April as a "very bullish" month driven by equity recovery.