Equities and commodities boost Q3 returns at top Dutch schemes

Equities and commodities boost Q3 returns at top Dutch schemes

The five largest Dutch pension funds reported quarterly returns of up to 1.3%, largely due to the performance of developed market equities, private equity and commodities.

Year-to-date results ranged from 1.8% at the €48bn metal scheme PME to 3.7% at the €206bn healthcare pension fund PFZW.

The €419bn civil service scheme ABP, which gained 1.1% during the third quarter, said that its developed market equity and private equity allocations had generated 5.4% and 6%, respectively.

However, it lost 0.1% on its interest rate and inflation hedge, and 0.3% on its currency hedge. Fixed income holdings lost 0.6%, while long-term government bonds lost 2.4%.

PFZW said that equity and commodities had gained 3.9% and 5.1%, respectively, and that it lost 0.9% on its government bond portfolio as a consequence of rising interest rates on Dutch and German government paper.

It attributed a 1.4% loss on local currency emerging market debt to Argentinian and Turkish government bond performance.

BpfBouw, the €58bn pension fund for the construction industry, indicated that its quarterly profit was largely due to rising US equity and private equity as well as commodities.

It added that the combined yield of Dutch and European property amounted to 3%, resulting in a year-to-date return of 10.1%.

Metal pension fund PMT (€72bn) reported quarterly returns of 0.6% on property and 0.8% from high yield. Its equity allocation delivered 4.7%.

Its €48bn sister metal scheme PME said its equity holdings gained 4.3%, its alternatives exposure returned 3.9%, and real estate produced a gain 1.9%.

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