Dutch pension funds are increasingly investing their assets in foreign investment funds. Whereas their holdings in Dutch investment fund units have been declining for some time, an increasing share of their assets is being allocated to foreign, especially European, investment funds.Read more
Dutch pension sector’s funding ratio improves in third quarter 2023
In the third quarter of 2023, Dutch pension funds saw their funding ratios improve relative to the second quarter, as the decline in the value of their investments was less pronounced than the decline in the value of liabilities. Total investments decreased by €63 billion to €1,422 billion, while aggregate liabilities decreased by €103 billion to €1,155 billion.
Published: 31 October 2023
Average funding ratio of Dutch pension funds at 123.2%
The Dutch pension sector’s average funding ratio came to 123.2%. This represents a 5.0 percentage point increase from the previous quarter (see Figure 1). It is nevertheless below the figure for a year ago, which was 124.6%. Indexations granted over the past year have had an unfavourable impact on funding ratios, whereas the rise in interest rates has had a favourable impact.
The policy funding ratio came to 119.0%. This represents a 0.4 percentage point decrease from the previous quarter. The policy funding ratio is the average of the funding ratios for the past twelve months. It fell because the funding ratios in the third quarter of 2023 were lower than those in the corresponding quarter of 2022.
Following four quarters of declining assets, the assets under management of Dutch pension funds increased again in the first quarter of 2023. This increase can mainly be ascribed to price gains, especially of equities.Read more
2022 was a turbulent year, with major events worldwide that affected nearly all of us to a greater of lesser extent. This year too, we see the impact of these events clearly reflected in our economy. We outline the most important below, but first we take a brief look back at 2022.Read more
After years of price gains, pension funds suffered losses on their real estate investments in 2022, DNB figures show. Overall, the value of these investments fell by over €14 billion. Listed real estate in particular fell in value, while losses in directly held properties were limited.Read more