NETHERLANDS - All three pension funds of airline KLM have reported healthy yields for 2005.

According to a statement by KPM pension fund administrator and manager Blue Sky Group, the Foundation Algemeen Pensioenfonds KLM has reported a yield of 15.1%, KLM Pilots Pension Fund 11.7% and KLM Pension Fund Cabin Personnel 15.9%.

The funds are worth €4.3bn, €5.2bn and €1.0bn respectively.

All three funds are assessing the possibilities of lowering their exposure to interest rate risks – which has been partly countered by a change in duration. An increased duration has countered the interest risks and lowered the indexation risk too.

Members will receive full indexation in 2006, which however will be assessed every year again.

According to spokeswoman Anja Brands, the coverage ratios have not yet been officially decided.

Equities returned upwards of 22% at all three schemes while fixed income came in at 7.0% across the board.

Real estate returns were between 14.5% and 15.1%.