Andorra Retirement Fund Hits €1.95B Record with 5.6% Return in 2025

Andorra's Retirement Reserve Fund closed 2025 with a strong 5.6% return, pushing its portfolio to a record €1.9531 billion, according to provisional figures from its latest monthly report.

The fund's assets all posted positive contributions amid supportive financial markets, driven by looser monetary policies, global economic resilience, and optimism around artificial intelligence's sector-wide effects. This marks the third straight year of historic highs, following peaks at the end of 2023 and 2024. Pending final audits, the portfolio grew by €130.2 million from €1.8229 billion at the end of 2024.

Over the past three years, the fund has delivered a cumulative 24.7% return, and 35.4% over the last decade. Since 2012, its total value has risen by €1.0407 billion, with €463.1 million from pension branch contribution surpluses and €577.6 million from asset management by the fund itself and external managers.

The report highlights how recent accumulated returns have outpaced Andorran inflation, fulfilling both a core objective and legal requirement. From December 31, 2012, to December 31, 2025, the fund achieved 48.3% returns against 26.2% cumulative inflation, far exceeding the long-term goal and substantially boosting the real value of its holdings.

The portfolio allocation emphasizes stability: 61.7% in monetary assets and fixed income, mainly short-term instruments like money market funds, commercial paper, term deposits, and current accounts, plus sovereign and corporate bonds. Equities account for 29.7%, including listed stocks, ETFs, and investment funds. The remaining 8.6% covers illiquid assets and private equity investments.