NETHERLANDS - With returns of 4.7%, commodities were the best performing asset class of the postal pension fund TNT in the first quarter, it said.

Equity and real estate were also main contributors to the scheme's 0.9% return.
Because of rising interest rates, index-linked bonds showed returns of -1.26%. The total fixed interest portfolio yielded 0.2%.

According to the €4.5bn scheme, equities yielded 1.8%. Equity investments in the euro zone performed well in particular, returning 3.9%.

TNT's real estate holdings returned 3.1% overall. Indirect property yielded 4.5%. Indirect real estate is not over 2% of the property portfolio, and is being used as a reserve for pending investments in direct property, chief investment officer Roelie van Wijk explained.

The pension fund's coverage ratio has risen by 3% to 138%, mainly due to the increase by 0.15% of the long-term interest rates, it added.

TNT has 45% of its assets invested in equity and 39.5% in fixed income. It investments in property and commodities are 11% and 4.5% respectively.

TNT has a total of 95,500 participants, of whom 47,500 are active members and 15,640 are pensioners.