NETHERLANDS - Over half of the €255m of contributions into the tax-friendly ‘levensloop', or life course, scheme of Loyalis, has been invested in the option without investment risk.
Loyalis, a subsidiary of the €209bn civil service pension fund ABP, has returned 9.6% on its 20-years' investments, it reported in its first annual figures.
Investments of its 15-years' and 5-years' schemes yielded 8.4% and 6%. The returns on investments with a duration of 30 years are 10.8%, it stated.
With a contributions' turnover of €255m in total, and its number of members almost 50,000, Loyalis claims to be preferred provider for its target group of civil servants and teachers, and market leader in levensloop.
But the low appetite for risk, in spite of excellent performance, follows similar findings from rival Careon, the personal financial services subsidiary of healthcare workers' scheme, PGGM. Careon reported returns of 10.1% and 10% at its 15-years' and 20-years' plans respectively. Its participants, nevertheless, invested 90% of their contributions in its savings plan instead of one of its investment schemes.
Loyalis' investment option without risk but a guaranteed return offers 4.5% thus far.
Simon van Driel, executive chairman at Loyalis, was positive about the first results. "The scheme fulfils a need of our target group," he said.
According to Van Driel, almost 50% of participants are under-50s. Two-thirds of the participants are male.
The Loyalis chairman is expecting much of the coalition agreement on the levensloop, especially the intention to make the scheme more attractive to workers on low income. One-quarter of the participants has a below average income, he said.