Dutch pension funds returned an average of 12.4% for 1998 according to the WM Company.
Once again equities were the driver for performance producing 15.4% overall returns for the year, despite 1998’s stock market volatility, with Dutch equities showing strongly at 23.8% and international shares returning 9.5%. Fixed-income investments benefitted from the decline in interest rates and showed substantial capital gains of 10.6% overall, fired by 12.1% from Guilder bonds.
Within real estate, the year return was 8.5%, with the spilt at 12.5% for direct and 5.6% for indirect.
Over five years the average return for Dutch funds in the WM universe stands at 10.7%, with equities at 15.9% and real estate at 9.2%.
Despite withdrawing a net total of Dfl 4.4bn from Dutch equities last year, the strong returns meant only a slight reduction in exposure to the domestic share market.