NETHERLANDS - The €2.1bn pension fund of the applied technical research institute TNO returned 6.2% on investments during the first quarter of 2010.

During this period, the scheme's cover ratio rose from 110.4% to 112.7%, including a financial provision for increased longevity, it reported.

With a return of 8%, the pension fund's equity portfolio saw the largest increase, with its private equity portfolio yielding 7%.

Fixed income and hedge funds generated 3.2% and 5% respectively for the Rijswijk-based scheme. In contrast, its property holdings delivered a loss of 4.9%, it added.

Although the pension fund's funding ratio is nine months ahead of its recovery plan, the scheme still has a shortfall of its required financial reserves, which equate to a cover ratio of 117.3%, the fund noted.

Earlier, preliminary figures of the TNO scheme fund a total return on investments of 12.5% during 2009, with equity and fixed income yielding 31.6% and 15.4% respectively.

Last year, the fund's hedge funds investments produced a 9.4% return, while its property portfolio incurred a loss of no less than 23.5%.

The pension fund of TNO has 5,535 active participants, 5,030 deferred members and 4,155 pensioners.
 

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