NETHERLANDS – More than 20% of Dutch compulsory industry-wide pension schemes failed to reach the required Z-score performance barometer for 2000.

And over the longer three-year period from 1998-2000, eleven of Holland’s 60 compulsory, industry-wide plans (18%) fell below zero in their performance against the Z-score benchmark.

The figures will be of particular concern to the industry-wide schemes this year, as next year marks the first performance test where individual employers will be able to opt out of the compulsory industry-wide plans in the event of unsatisfactory results.

The Z-score, introduced under the STAR legislation of 1998, compares the actual yield from a fund’s portfolio with the projected yield of a standard portfolio over a period of five years in order to see whether performance has been substantially lower than could objectively been expected on the basis of market indices.

Joos Nijtmans, policy maker at the VB adds: “ No-one is dropping out this year, but some of the funds must pay attention to their performance over the next year.”

The health sector pension fund (PGGM) is the best performing Dutch pension fund against the Z-score since its introduction on April 26, 1998.
The fund is also in the top ten for last year’s comparison figures.

The yearly Z-score is calculated by subtracting the figure for annual benchmark performance, less hypothetical costs at 0.15%, from actual yearly fund performance after costs. This result is then divided by the yearly performance spread, which comprises the percentage of fixed interest, with a 0.6% weighting, and the percentage of shares, with a 2.6% weighting.

Z-score figures for a cross-section of the largest Dutch compulsory, industry-wide schemes.

For comprehensive Z-score results see the May edition of Investment & pensions Europe Magazine.

Pension fund / AUM NLG / Z-score (2000) / Z-score (1998-2000)

ABP / 331bn / 0.33 / 0.48
PGGM / 116bn / 0.99 / 1.91
Metaal- en Technische / 39bn / 0.49 / 1.52

Bouwnijverheid / 33bn / -0.48 / 1.18
Metaalindustrie / 28bn / 0.75 / 0.89
Grafische bedrijven / 17bn / -0.50 / 0.97

Landbouw / 10bn / 0.47 / 0.39
Detailhandel / 7bn / 0.42 / -0.06
Koopvaardij / 7bn / 0.54 / 0.31
Beroepsvervoer over de Weg / 7bn / 0.02 / 0.00