Andorra's Pension Fund Surpasses €2 Billion Milestone

Andorra's Fons de Reserva de Jubilació (FRJ) has reached a historic milestone, surpassing €2 billion in assets for the first time, closing February 2026 at €2.012 million.

The fund increased by €26 million from January's €1.9866 million figure, achieving a 2.2% return over the year's first two months—outpacing Andorran inflation—and a 6.6% yield across the prior 12 months. This builds on the positive momentum from 2025, when assets hit €1.9531 million, up more than €130 million from the previous year.

Fixed income performed strongly, particularly government bonds, while emerging and European equity markets led gains due to their lighter exposure to technology firms. In contrast, US markets faced headwinds from doubts surrounding artificial intelligence investments. The portfolio remains diversified, with over 60% in fixed income and cash equivalents, about a third in equities, and the balance in other assets.

Fund managers emphasized a long-term approach under Law 11/2025, aiming to beat inflation at medium- and long-term horizons while preserving pension purchasing power for the Caixa Andorrana de Seguretat Social (CASS).

Recent Middle East tensions, including the outbreak of war in Iran with US and Israeli strikes followed by retaliation from the regime, have triggered market volatility since Saturday. Global exchanges have seen sharp declines, and FRJ officials acknowledge potential losses in coming weeks that could disrupt the recent upward trend. Even so, they are evaluating the situation through a long-term lens, avoiding hasty decisions and balancing risks with opportunities.