EUR 26bn worth of securities were sold by Dutch pension funds in the fourth quarter of 2008, according to figures published by De Nederlandsche Bank.

The funds carried out equities sales totalling almost €9bn, and disposed of €17bn worth of debt certificates such as bonds. Due to these sales, and to substantial price losses on the funds' equity holdings, the value of their equity and debt portfolios fell by €86bn during this final quarter of 2008 to €529bn at year-end. In 2007, this was 19 per cent higher.

However, investment transactions of pension funds turned around in the fourth quarter, with sizeable securities sales taking place. Two-thirds of the equity sales concerned shares of US companies and financial institutions. European debt certificates also affected sales. In contrast, the first three quarters saw purchases worth €37bn.

De Nederlandsche Bank said that the asset sales took place during a particularly hectic time for the financial markets, and pension funds' investment policies were driving these sales. With a view to spreading risk and realising long-term returns on investments, the Bank said pension funds therefore aim for a strategic mix of equities and bonds in their securities portfolios. The price losses on the stock exchanges reduced the relative size of their equity holdings, and in order to restore this balance bonds were sold off. This also reduced the increased relative weight of debt assets.

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