PGB, the €16.3bn pension fund for the Dutch graphics sector and process industry, returned 5% on investments over the second quarter, and saw its funding ratio improve by 0.8 percentage points to 106.6%.

Equity was the best performing asset class, with the 31.7% allocation returning 5.5%, leading to a year-to-date result of 7.3%.

PGB’s 50.5% fixed income allocation returned 4.3% over the second quarter and 9% over the first half due to falling interest rates. 

Alternatives delivered 3.6% between April and June, while infrastructure and commodities returned 7.8% and 7%, respectively, over the same period.

The pension fund said its quarterly result also included 0.5 percentage points’ of return from a combined interest and currency hedge.

During the second quarter, the assets of the Pensioenfonds voor de Grafische Bedrijven increased by €1.9bn, in parts thanks to the transferred assets of pension funds joining PGB.

It noted that its funding had improved “modestly”, as falling interest rates also increased PGB’s liabilities.

In other news, the €2.8bn scheme of TNO, the institute for applied technical research, reported a quarterly return of almost 3.9%, including 1.3 percentage points’ of return from the interest hedge on its liabilities.

It said its year-to-date result was more than 9%, including 2.6 percentage points from its interest cover.

Equity, fixed income and property returned 1%, 3.7% and 1.3%, respectively.

Private equity, with a loss of more than 0.5%, was the only asset class with a negative return in the second quarter.