Target return exceeded: Kenfo managers achieve more than 9 percent return

The German nuclear fund Kenfo achieved a return of 9.4 percent in 2024, exceeding its target return of 4.1 percent by 5.3 percentage points. The foundation's income rose to €409.8 million , up from €359.9 million in the previous year . The fund now manages assets of €24.8 billion at market value.

"2024 was another successful year for Kenfo," said CEO Anja Mikus at the presentation of the annual report . "Despite significant geopolitical tensions and volatile markets, our portfolio performed very well."

The portfolio continues to be heavily invested in equities: 36.2 percent of assets are invested in equities, followed by corporate bonds at 28 percent and government bonds at 15.7 percent. Unlisted investments account for 12.6 percent.

USA dominates the stock portfolio

In terms of the regional distribution of equity investments, the US leads the way with 32.9 percent, ahead of Japan with 8.3 percent and the UK with 6.5 percent. Germany accounts for only 5.1 percent of the equity portfolio. According to Kenfo, this weighting is based on the approximate distribution of gross domestic product rather than market capitalization.

In terms of sectors, technology dominates with 19.8 percent, followed by industrials with 11.8 percent and banks with 10.8 percent. The equity portfolio includes more than 3,600 companies worldwide.

The largest gains in 2024 were achieved by stocks of industrialized nations, at 18.5 percent, followed by emerging market stocks at 17.6 percent. Bonds performed more subduedly than in the previous year, at 2.5 percent.

Non-listed investments grew by €1.1 billion to €3.1 billion in 2024. This segment is expected to expand to approximately 30 percent of the portfolio by 2028. "The result reflects the successful build-up phase of non-listed investments," Mikus emphasized. Illiquid investments achieved a return of 12.9 percent in 2024.

The segment includes private equity at 36.9 percent, infrastructure at 40.5 percent, private debt at 14.6 percent, and real estate at 3 percent. Infrastructure investments, in particular, are influenced by the energy transition, accounting for one-third .

Sustainability goals exceeded

Kenfo has also exceeded its sustainability targets. The _carbon intensity of its equity and bond portfolio has been reduced by 59 percent since 2019 – the initial five-year target was minus 20 percent. The fund aims for net-zero emissions by 2050.

The fund's hidden reserves increased by €1.8 billion to almost €3.9 billion in 2024. "The high level of hidden reserves enables Kenfo to mitigate investment risks and withstand market fluctuations," explained CFO Thomas Bley.

805 million euros for nuclear waste disposal

In 2024, Kenfo paid a net €805 million to the Federal Environment Ministry for interim storage and the search for a final repository. Since its establishment in 2017, disbursements have totaled €4.47 billion. These costs are covered by the value increases of the portfolio.

The outlook for 2025 is cautious. "The US trade conflict continues to cause economic uncertainty," Mikus said. Geopolitical tensions could lead to sharp fluctuations in energy and commodity prices. The foundation's expected income is between €616 million and €676 million.

The Kenfo fund was established in 2017 as a successor to the private provisions of the nuclear companies. The former power plant operators paid €24.1 billion into the fund. The money is intended to be sufficient for the interim and final storage of nuclear waste until the end of the century.

Kenfo’s full 2024 Annual Report is available on the fund’s website.