NETHERLANDS - The investment portfolios of Dutch pension funds increased in value by 4.5% (€25bn) in the second quarter, according to latest figures from De Nederlandsche Bank (DNB).  

The improvement in the value of the investment portfolios, which totalled €560bn at the end of June 2009, was attributed to "favourable price movements of financial assets", particularly as equities posted the highest price gain totalling €16bn.

The DNB data revealed that while revaluations also saw bond prices improve by €5.5bn, there appeared to be "substantial shifts" between bond holdings and holdings in Dutchinvestment funds. These are said to have a more active approach by shareholders than in other funds.

Figures showed that pension funds sold almost €75bn in bonds and invested around €72bn into investment funds, bringing the total value of holdings in these funds to €217bn at the end of June.

The DNB noted: "The massive shift from direct investments in bonds to investment firms is the result of portfolio investment policy revisions at two major pension funds".

This refers to the assets of the €170bn civil service scheme ABP, managed by APG, and those of the €75bn healthcare scheme PfZW, run by PGGM. In August the DNB noted that the two pension funds had invested in the new fund for joint account vehicle (FGR) as part of their new  strategy. (See earlier IPE article: Dutch pensions up share in local funds)

The latest data also showed holdings in equity investments increased by around €1bn in the second quarter, but DNB noted that "despite the favourable developments in the recent period, pension fund investment losses resulting from the financial crisis have not been fully recouped yet". The current value of €560bn is around €64bn lower than the €624bn recorded in June 2008. (See earlier IPE article: Schemes pursue equity spree to compensate for losses)

If you have any comments you would like to add to this or any other story, contact Nyree Stewart on + 44 (0)20 7261 4618 or email nyree.stewart@ipe.com

Topics