NETHERLANDS – The €1.5bn pension fund for dentists and dentist specialists (SPT) has divested one-third of its 45% equity allocation.
The decision followed a recent continuity analysis, which showed that the scale of its equity holdings posed a considerable risk over the long term, it explained.
SPT chairman Stan Hoovers told IPE: “As we are closed to new entrants, we needed to lower our risk profile because our steering instruments are limited.”
He added that the 40% hedge of the equity portfolio had been raised to 60%.
According to SPT, the remaining equity holdings still allowed the scheme to benefit from improving markets.
The scheme said it had invested the freed-up assets in fixed income, increasing the portfolio to 70%.
SPT is a closed scheme, with 4,425 active participants and 3,045 pensioners.
Its coverage ratio at November-end was 97.6%, whereas its minimum required funding is 104%.
SPT applied rights cuts of more than 10% in 2011 and 3% in 2012.
It has indicated that an additional discount of 2.2% might be necessary in 2013.
It chairman added that even a fourth rights cut – in 2014 – may be needed, if the pension fund fails to meet its recovery requirements.