NETHERLANDS - The railways pension fund SPF and the public transport scheme SPOV have returned 4.4% and 4% respectively during the third quarter, they have announced.
At SPF, equity yielded 5.3% after currency hedging. Fixed income and real estate showed returns of 3.4% and 3% respectively. Currency hedging - part of the scheme's long-term strategy - took 0.3% off the total returns, it indicated.
SPF's total returns during the first nine months are 5.2%. Its total assets under management rose by €0.2bn to €11.4bn, it said. The average returns during the last five years are 7%.
The €2.2bn SPOV also reported returns of 5.3% on equity after currency hedging, with fixed income and real estate yielding 3.3% and 2.3% respectively.
The overall contribution of currency hedging was minus 0.2%, SPOV said. Its average returns during the last 5 years are 5.4%.
Although the decreased interest rates also had a negative impact, SPF's coverage ratio is still 171%. SPOV's funding ratio dropped 7% to 133%.
Both schemes - managed by SPF Beheer - invest worldwide in equity, private equity, government and corporate bonds. In the Netherlands, they invest in real estate and mortgages. Their asset mix is based on an asset liability management study.