Equity exposure still moving up
In recent years Dutch pension funds have been increasing their exposure to equities, which now represent around 44% of total assets. Around 15% of their total investments go to Dutch stocks, although exposure to Euro-land equities outside the Netherlands is increasing.
Fixed income investment is also mainly focused on the Netherlands, with around 30.4% of total pension assets invested this way. The percentage of assets invested in bonds outside the Netherlands was around 18% at the end of 2000.
Investments in real estate, which at the end of 2000 accounted for 5.3% of total assets, are estimated to amount to 6% at present, including both direct property holdings and investment funds.
Investment in cash and money market instruments is still low, and at the end of 2000 was around 2.5%.
Disappointing investment returns could lead to some pension funds reducing exposure to equities, although the general view in the market is that in the medium term investment in equities among Dutch pension funds will continue to increase. Interest among investors in alternative asset classes is also increasing, but so far the exposure to this class is very limited, being restricted to the largest funds.