The 2005 investment results of Dutch corporate pension funds have been excellent, with returns of up to 25.3%, says the Foundation of Company Pension Funds (OPF).
According to the OPF, which has combined AUM of €114bn, the results have been positive for the third consecutive year.
Equities performed especially well, with returns of over 26%. Fixed interest yielded 6%. Real estate - the funds in particular showed good results - returned 14%.
“Because of the rise of the dollar, the decision to hedge has affected the results by some percentage points,” OPF said.
With returns of 25.2%, the pension fund of food producer Masterfoods - with AUM of €806m - produced the best results in 2005. Protector, the €1.2bn scheme of Exxon Mobil, came second with returns of 21.5%. Philips’ €14.5bn scheme and €9.6bn pension fund of ING reported results of 13.3% and 14.5% respectively.
Returns during the past five years averaged between 0.5% negative and 7.3%. The pension scheme of Dutch daily Het Financieele Dagblad performed best, with average returns of 7.7%.
“Based on the 10-year results, the participating schemes have reasons for satisfaction,” OPF said. The returns during this period vary from 4.6% to 11.8%. The best returns were reported by the vicars’ pension fund.