Dutch pension funds posted average returns of 16.3% in 1999, up from 12.4% in 1998, according to WM Company. Equities provided formidable average returns of 41.4%. Dutch equities showed a respectable 22.5% but were overshadowed by returns of 113.3% in Japan and 94.6% in emerging markets. Fixed income posted a loss of 0.4% on average with Eurobonds faring worse at –2.4%. International bonds were the only fixed income to reward investors, doing so by 10.4%
Real estate provided returns slightly above average at 17.2%, with direct contributions at 18.8%, indirect 12.4% and cash and other investments posted a 3.3% growth. Fund managers opted for 47% equities, 43% fixed income, 9% real estate and 1% cash. The 16.2% average return for 1999 beats the five and ten year averages of 15.2% and 11.5%.
Of the pension funds, Shell returned the highest returns of 28% on its assets. ABP, the Netherlands’ largest pension fund turned in a poor return of 10%, down from 12.9%.