Dutch pension funds have achieved above-average returns for the third year in succession, according to WM Performance Services, the investment performance measurement business.
WM’s forecast of results for 2005 shows that the Dutch Pension Fund Index (DPFI) returned 2.3% in the fourth quarter of last year, leading to an annual return of 14.7% (excluding the impact of currency hedging). The forecast is an indication for the expected return of the WM Universe of Dutch pension funds, and is based on the returns of standard market indices and on the asset allocation of the WM Universe at the end of last year.
According to WM’s figures, the fourth quarter’s positive performance was largely driven by the further rise of the equity markets. Despite rising interest rates, fixed income investments gave a reasonable return of 5.5%.