mast image

Impact Investing

IPE special report May 2018

Sections

Dutch schemes recover from bear market – WM

NETHERLANDS – Dutch pension schemes returned 8.4% on their investments last year - meaning they have now recovered most of the losses of the equity bear market, according to WM Performance Services.

“In the fourth quarter, the DPFI showed a return of 2.8%, leading to an annual return of 8.4% (excluding the impact of currency hedging),” WM said, referring to its Dutch Pension Fund Index.

“The fourth quarter return was boosted by decent positive equity market returns, although the declining dollar remains relatively weak and a source of discomfort to European exporters.”

WM, part of State Street, added that “on the whole, with two years of positive growth behind them, Dutch pension funds have recovered most of the losses they sustained during the savage equity bear market occurring between 2000 and 2002”.

“Last year’s returns look promising, but they should be viewed in the broader context of the Dutch pension fund landscape,” said Robert Rijlaarsdam, WM Performance Services’ local manager in the Netherlands.

“Changing regulations (FTK and IAS 19), the low-interest environment and improving longevity have had a big impact, and continued positive returns are needed to restore the funding positions of many pension schemes.”

WM’s index provides an indication of the expected return of the WM Dutch Pension Fund Universe. It is based on the returns of standard market indices and on the asset allocation of the Universe as of the end of last year.

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2435

    Asset class: CLOs.
    Asset region: Global.
    Size: USD 50m.
    Closing date: 2018-05-22.

  • QN-2436

    Asset class: Real Estate - Core Open-ended Real Estate Equity Fund (non-listed).
    Asset region: Asia Pacific.
    Size: Approx. CHF 70-100m per investment.
    Closing date: 2018-05-25.

  • QN-2438

    Asset class: High Yield Bonds.
    Asset region: US.
    Size: USD 300 million.
    Closing date: 2018-05-25.

Begin Your Search Here