The three large KLM schemes and the Philips Pensioenfonds have reported “modest” results for 2015, with KLM’s pension fund for cockpit staff performing best with a 2.3% annual return.
At least one KLM scheme, thanks to relatively strong performance over the fourth quarter, was able to avoid closing out the full year with a loss, according to the schemes’ quarterly report.
The €7.9bn KLM scheme for cockpit staff (Vliegend Personeel) reported a fourth-quarter return of 1.5%.
Its policy funding – the criterion for indexation and rights cuts – stood at 122.9% at the end of 2015.
The €7.4bn KLM pension fund for ground staff (Algemeen Pensioenfonds) attributed its quarterly return of 1.6% in particular to the performance of equities and real estate, which generated 5.4% and 2.3%, respectively.
Its return over the full year was 0.7%, with real estate and equity returning 8.6% and 3%, respectively.
It lost 0.9%, however, on its 52% fixed income portfolio.
The ground staff scheme closed the year with a funding of 111.1%
The €2.5bn KLM pension fund for cabin staff said a fourth-quarter return of 1.9% allowed it to avoid reporting a loss for 2015, ultimately delivering 0.5%.
Real estate, returning 8.6% over the year, was the best performing asset class.
The scheme said its equity holdings returned 3%, whereas its fixed income generated an annual loss of 1%.
At year-end, funding at the Pensioenfonds KLM Cabinepersoneel stood at 108.5%.
Meanwhile, the €17.6bn Philips pension fund reported a quarterly return on investments of 1.1%, which it attributed in particular to real estate and equity.
It said its annual return was 1.2%.
During the past three months, high-yield credit and emerging market debt delivered positive results.
In contrast, euro-denominated government bonds, global government bonds and commodities all declined.
The pension fund said it official policy funding stood at 111.7% at year-end and that its assets had dropped from €19.8bn to €17.6bn over the fourth quarter.
Lastly, the €20bn sector scheme for public road transport (Vervoer) reported annual and fourth-quarter returns of -1.5% and 0.7%, respectively.
Vervoer said its policy funding stood at 104.4% at year-end.