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Impact Investing

IPE special report May 2018

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EMD allocations lead returns at ING, SCA, Unisys

Emerging market debt was the best performing asset class at the pension funds for Unisys and ING, as well as multi-company scheme SCA.

The €27.5bn ING scheme reported an annual return of 10.5%, with equity and credit generating 9.8% and 5%, respectively.

The value of its holdings of property and alternative investments increased 11.2% and 10.8%, respectively.

However, the pension fund lost 4.6% in the fourth quarter of 2016. Pensioenfonds ING said its funding ratio dropped slightly to 90.4% at the end of the year.

The €429m multi-company scheme SCA posted an annual profit of 9.5%. Equity and real estate produced yields of 8.5% and 5.9%, respectively, the scheme said.

The pension fund for the hygienic products producer closed the year with a coverage ratio of 98.1%. 

The Dutch scheme for IT firm Unisys said it had returned more than 9.5% over 2016, with long-duration government bonds and equity delivering 10% and 10.5%, respectively.

However, like ING, Unisys had a difficult fourth quarter, losing 2.6%. This included a 6.3% loss on its long government bonds.

Equity holdings in the Far East and infrastructure had produced 10.3% and 4.6%, respectively, according to the pension fund. Its coverage stood at 104.3% at year-end.

Other Dutch schemes, notably ABP and PFZW, also benefited from strong emerging market debt performance last year. ABP, the Netherlands’ largest pension fund, saw its allocation gain nearly 15%.

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