Pension funds and insurers hold EUR 290 billion in euro area government bonds

Statistical News Release
Date 14 December 2011

At end-September 2011, euro area government bond holdings of Dutch pension funds and insurers ran to almost EUR 290 billion, figures of De Nederlandsche Bank show.

During the third quarter, this portfolio appreciated by almost EUR 16 billion (Chart 1). The increase is due entirely to price gains (EUR 19 billion); during the quarter, pension funds and insurers sold over EUR 3 billion worth of euro area government bonds.

Pension funds' and insurers' holdings of euro area government bonds

Most of the EUR 19 billion total price gains was realised on German and Dutch paper, with returns touching 11 per cent on German and 10 per cent on Dutch bonds. Both pension funds and insurers continued to rebalance their euro area government loan portfolios. During the third quarter, they purchased EUR 11 billion in bonds issued by the Netherlands, Germany, Austria and Finland. At the same time, they sold almost EUR 14 billion worth of Italian, French and Spanish government bonds.

At end-September, euro area government bonds constituted some 23 per cent of pension funds’ and insurers’ portfolio investments. Non-euro area government paper amounted to only 2 per cent. The non-euro area portfolio was dominated by United States and United Kingdom issued bonds. The rest of portfolio investments consists mainly of bank and corporate bonds and equities.
For further information please contact Flore Kraaijeveld (tel.nrs. 020 524 3091 en 06 3102 8660)