Sections

Larger Dutch schemes return up to 1.9% in third quarter

Related Categories

Several larger Dutch pension funds reported returns of up to 1.9% during the third quarter, leading to year-to-date results of up to 5.2%.

As a consequence of rising interest rates and positive returns on investments, coverage ratios of the schemes also improved by several percentage points.

The €24.9bn PGB posted a quarterly result of 1.9%, taking its cumulative return to 4% for 2017 so far.

The multi-sector scheme attributed the quarterly profit of 0.8% on its 43.5% matching portfolio to its dynamic investment policy. Both government and corporate bond allocations yielded 0.9%, while mortgages returned 1.7%.

The scheme said its return portfolio generated 2.8% during the last quarter. It was largely able to compensate the drop of the US dollar relative to the euro using its currency hedge. As a result, equity holdings gained 2.8% since June and 7.5% year-to-date.

PGB reported that property, infrastructure and private equity had delivered 1.1%, 0.7% and 2.9%, respectively, over the third quarter, and yielded 4%, 2.4% and 6.6% so far this year.

It said its funding rose 2.9 percentage points to 103.7%.

Vervoer, the €23.9bn pension fund for private road transport, reported quarterly and year-to-date results of 1.1% and 1%, respectively. However, it did not specify its returns per asset class.

The scheme’s funding improved by 1.7 percentage points to 103.5%.

KLM schemes strengthen funding levels

KLM airline scheme nets 10% gain in 2016

The €3bn Pensioenfonds KLM Cabinepersoneel announced a quarterly profit of 1.6% and a cumulative return of 5.2%.

It said its holdings in fixed income, equity and real estate had generated 0.8%, 3.2% and 0.2%, respectively, since June. Funding of KLM’s pension fund for cabin staff rose 2.9 percentage points to 110.9%.

Coverage of the Algemeen Pensioenfonds KLM (€8.5bn) improved 3.7 percentage points to 112.7% at September-end, following a 1.6% investment return during the last quarter.

KLM’s pension fund for ground staff said that risk-bearing bonds in its portfolio had benefited from the “continued positive sentiment among investors as well as increasing corporate profits”.

The €8.6bn Pensioenfonds Vliegend Personeel KLM said it returned 1.2% over the third quarter and 4.4% year-to-date.

Funding of the pilots scheme improved by 4 percentage points to 124.5%, exceeding its required financial buffers by 1.3 percentage point.

Related images

  • 'Pensions funds should ramp up local investment'

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2383

    Asset class: Residential Property.
    Asset region: Ireland.
    Size: EUR 10m.
    Closing date: 2017-12-18.

  • QN-2384

    Asset class: Equities Switzerland (Large Caps).
    Asset region: Switzerland.
    Size: CHF 550 – 600 mn.
    Closing date: 2017-12-15.

  • QN-2385

    Asset class: Liability Driven Investment.
    Asset region: Europe.
    Size: Size: EUR 1 Billion, Liability size: EUR 3 Billion.
    Closing date: 2018-01-08.

  • QN-2386

    Asset class: Fixed income.
    Asset region: Global developed markets.
    Size: CHF 500 -1000m.
    Closing date: 2018-01-15.

  • DS-2392

    Closing date: 2017-12-21.

  • QN-2393

    Asset class: All/Large Cap Equities.
    Asset region: Europe.
    Size: EUR 200m.
    Closing date: 2017-12-21.

  • QN-2394

    Asset class: Real Estate Industrial.
    Asset region: Europe.
    Size: EUR 10m.
    Closing date: 2018-01-04.

Begin Your Search Here