NETHERLANDS - Spectacular returns on real estate investments were behind the returns of up to 11.8% on KLM's three pension funds, they announced.

The main scheme, the €4.6bn Algemeen Pensioenfonds KLM, reported property returns of 32.5%, whilst its equity investments yielded 17.8%. Its total returns on investments were 11%.

The  €5.4bn pension fund, Vliegend Personeel KLM returned 8.4%, with yields of real estate and equity of 30.9% and 17.9% respectively.

The €1.1bn scheme for cabin staff reported overall returns of 11.8%, and yields of 30.9% and 17.9% for property and equity respectively.

All schemes said the returns on bonds were between minus 0.7% and 0.8%.

The investment results, in combination with the rise of the interest rates, have boosted the coverage ratio of all three pension funds to over 150%, a spokeswoman for Blue Sky Group - manager and provider of the schemes - told IPE.
As a consequence of the high funding ratio, all KLM schemes have decided to grant their 47,000 participants full indexation in 2007.