NETHERLANDS – ABP, the €292bn pension fund for Dutch civil servants, has attributed its 3.6% return over the first quarter to its developed-country equity holdings, which returned nearly 10% over the period.
This return – combined with a recent 0.5% rights cut and a slight increase in the accounting rate for liabilities – saw ABP increase its coverage ratio by 5 percentage points to 101%.
At year-end, the scheme's funding must be at least 104.2%.
The pension fund reported a positive result on almost all asset classes, with profits of 1.3% and 2.5% on nominal fixed income and credit, respectively.
It also announced positive returns on property (5%), private equity (6.5%) and commodities (3.4%), as well as on infrastructure (1.7%) and hedge funds (5.6%).
However, it said it had to take a 1% loss on inflation-linked bonds and alternatives, and that it also lost 0.6% and 0.2% on its currency and interest hedges, respectively.
It added that its Global Tactical Asset Allocation (GTAA) delivered a profit of 1.7%.
Meanwhile, the €134bn healthcare scheme PFZW announced a quarterly return of 3.2% and a funding boost of 4 percentage points to the legally required minimum of 105%.
It said its 62% allocation to equities generated 5.6%, with liquid equity the best performing asset class, returning 8.6%.
PFZW also reported positive returns on structured credit (6.2%), private equity (4.2%) and property (4.3%).
It attributed the 2.4% return on high yield and emerging market debt to falling interest rates in the US, narrowing credit spreads and the depreciation of the euro.
Its investments in commodities, which returned 0.7%, benefited from rising oil prices, which more than offset falling prices in other sectors, the scheme said.
In contrast, PFZW announced a 1.6% loss on its fixed income portfolio due to increasing swap rates. Its credit portfolio generated a 0.3% return.
The €32.7bn metal scheme PME reported a quarterly return of 1.9%.
Following the recent rights cut of 5.1%, it saw its funding increase by 7.6 percentage points to 101.5%.
Franswillem Briët, PME's chairman, said the scheme's coverage was now back on track to its mapped out recovery and suggested additional rights cuts might be avoided next year.
The €46.8bn metal scheme PMT said its funding improved from 92% to 101.1% on the back of a quarterly result of 2% and a rights cut of 6.3%.
It added that its recovery is also back on course to the minimum required level of 104.3% at year-end.