NETHERLANDS - The new Financial Assessment Framework for Dutch pension funds, or FTK, has prompted changes in funds' investment policy, a new survey has found.

Three-quarters of schemes surveyed are going to make changes in their investment policy as a result of the new Pensions Act, found Ernst & Young and Holland Van Gijzen. The new act comes into force next January.

"Nearly half (44%) have already adapted their investment policy due to the new Financial Assessment Framework and one-third (31%) state they will do so in the future," a release stated.

"Of this group, three-quarters (76%) choose to extend the duration of the investment portfolio and one-third (35%) cover the risks by means of derivatives."

And 21% of the managers interviewed stated they did not intend to change anything in their portfolio due to the new framework.

The survey also found that communication on indexation has been adapted en masse, although there was uncertainty among pension funds about the so-called initial letter.

This letter is intended to give fund members clarity about their pensions.

A third of those interviewed stated they would alter the indexation commitment as a result of the Pension Act, although 61% did not intend to do so.

The survey was conducted by Intomart GfK among pension fund managers.