Dutch funds’ commodities returns stall
NETHERLANDS - Commodities returns at three of the largest Dutch pension funds went into negative territory in the third quarter due to declining oil prices.
Civil service fund Stichting Pensioenfonds ABP posted a -15% commodities return. Health care scheme PGGM returned -18.1% and metals fund PME made a -17.1% return in the asset class (see separate stories).
ABP's nine-months return on commodities is -14%. Nonetheless, the fund is not planning to change the asset allocation of its portfolio, a spokesman said.
With an entire investment return of nearly 3%, the fund performed well, passing the €200bn mark in the last quarter. It posted real estate returns of nearly 10%.
The first three quarters of the year saw a positive return of 22% in the asset class due to the buoyant Dutch real estate market.
Equity and private equity performed well for ABP - the fund has built up its investments in shares to 20.8% and 27.2% in private equity, both asset classes booked a positive return of 4.1% and 8.4% respectively in the third quarter of this year.
Nonetheless, ABP's financial position has not improved as liabilities have risen by €9.9bn.
Chief investment officer Roderick Munsters said: "We are satisfied with the investment results of the past few months and the year until now."