NETHERLANDS - The internal supervisors of the €945m occupational pension fund for Dutch notaries (SNPF) has blasted the executive board's performance for 2009.

According to the SNPF's annual report, the supervisors - consisting of the scheme's non-executive board members - criticised the executive board for being too slow, losing initiative and leaning too heavily on its pension provider for governing tasks.

The supervisors recommended abolishing the distinction between executive and non-executive board members and introducing a visitation committee or audit committee for future internal supervision.

The board will discuss the issue in September, but it has already conceded its one-tier structure has been unsatisfactory.

Meanwhile, the Stichting Notarieel Pensioenfonds is likely to face rights cuts again, after the general coverage ratio fell during the first six months of 2010 in the wake of declining long-term interest rates.

Based on its recovery plan, it initially expected a discount of as much as 8.4% within five years without additional measures.

However, as the funding ratio had risen by more than 8 percentage points to 95.4% at the end of 2009, a new assessment suggested no cuts were necessary then, pension officials said.

To spread its risks, the pension fund has shifted part of its fixed income mandate with PIMCO to Aegon Asset Management.

It has also divided its securities mandate with Fortis Investments and outsourced part of it to JP Morgan Asset Management.

Although the pension fund has set its strategic interest-risk hedge on its liabilities at 75%, the actual hedge was 62% for tactical reasons, according to its annual report.

The notaries scheme reported a return of 6.8%, with equity and fixed income returning 21.3% and 4.1%, respectively.

In contrast, its private equity holding lost 9.4%.