ABP and PME report third-quarter returns
NETHERLANDS – Some of the largest pension funds in the Netherlands have reported third-quarter investment returns.
In the first nine months of the year, civil service scheme Stichting Pensioenfonds ABP made a return of 6.5%. At the end of September, the fund was worth 160 billion euros - a growth of 10 billion euros. Its coverage ratio has gone up from 109% to 113%.
“Institutional investors are walking through the low return environment with moderately positive expectation for the mid- to long-term,” said fund chief investment officer Jean Frijns.
The pension fund for metal industry employees, PME, has reported a 6.8% growth in the third quarter. In the first quarter the fund made a 3.2% return.
Its coverage ratio is up to 111%, two percentage points more than the end of 2003.
Meanwhile, the Dutch Public Transport pension fund (SPOV) has reported a yield on investments of 0.9% in the period.
The overall yield of investments in the first nine months of 2004 has been set at 3.8%, with a total invested capital of 1.9 billion euros. The coverage ratio is 132% - flat in comparison to the second quarter.
And Spoorwegpensioenfonds, the Railway Pension Fund, has also presented its figures – with an overall yield on investments of 0.5%.
Bonds yielded 1.8%, real estate three percent, with the impact of currency coverage set at 0.8%. The total yield on investments in the first nine months was 4.3%. SPF is now worth 9.6 billion euros – from 9.4 billion euros at the end of 2003.