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Dutch Co-op cover ratio rises by a third

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  • Dutch Co-op cover ratio rises by a third

NETHERLANDS - The €141m Dutch Co-op Pension Scheme has seen its solvency ratio rise to 146% - an increase of 33% from its nadir at the end of February this year at 113%.

The Stichting Co-op Pensioenfond suffered greatly during the credit crisis, despite a prescient move over the last decade to back liabilities with debt and similar investments.

The Utrecht-based fund's coverage ratio had been 192% at the end of 2007, according to Bert Kok, director at the fund. Its assets were then worth €151m.

At that time, officials presumed that 70-80% of the interest rate risk was covered but by February 2009 that coverage was closer to 50% as a consequence of credit losses and rebalancing, according to Kok.

He said the fund had done an excellent job for members during the crisis by holding cash and not taking on extra risk.

Aberdeen Asset Management has run the lion's share of assets since November 2007 in a balanced mandate. The Aberdeen AM portfolio has gained almost 25% since March this year.

If you have any comments you would like to add to this or any other story, contact Julie Henderson on + 44 (0)20 7261 4602 or email julie.henderson@ipe.com

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