PGGM, the NLG44bn Dutch pension fund for health and social welfare workers, examines its strategic asset allocation on a regular basis, according to Alfred Kool at the fund.

But the yo-yo motion of present global markets has so far triggered no tactical adjustment within PGGM's portfolios, he adds - whilst not ruling out any possible fine tuning in the future.

The fluctuations in the exchanges since July have created an extremely interesting investment scenario, although for many investors it has certainly been very damaging.

However, as a pension fund with long term interests we are definitely not hasty in changing any investment policies, although it is hard to predict whether or not we will make any moves in the future."

Kool elucidates by saying that it is certainly a buyers' market at the mo-ment, with equities priced so low: "and we are on the buyers' side".

On the bonds side, Kool says there has been little change either, apart from some of the bond profits rising.

"In effect no movement has been recorded in gilts since the summer of 1997, but if the markets dip any lower than they already are, then some compensatory action is possible on the gilts side," he points out.

In Dutch pension funds as a whole, Kool believes the reaction to the crisis is by and large similar to that at PGGM.

"Perhaps there will be some shifts within the smaller funds, and undoubtedly the Dutch investment banking sector is reexamining itself closely at present. But the larger players are all firmly glued on the long term horizon," he offers. Hugh Wheelan"

Topics