Positive revaluation of investments and favourable price movements of financial assets have added €25bn in value to Dutch pension funds' investment portfolios in the second quarter of 2009, according to De Nederlandsche Bank (DNB).

The investment portfolios now stand at €560bn in value.

Shares recorded the highest price gains, at €16bn, and revaluations of bonds and units added to just over €5.5bn each. Almost €2bn in securities on balance were sold by pension funds, after substantial shifts between bond holdings and investment fund certificates.

Nearly €75bn in bonds were also sold by pension funds, and around €72bn of certificates were bought. They increased share investments by €1bn, although the losses experienced due to the financial crisis are yet to be fully recouped.

Pension funds' investment fund certificates increased from €139bn at 31 March to €217bn at 30 June.

DNB said there was a massive shift from direct investments in bonds to investment firms, as a result o portfolio investment policy revisions at two major pension funds. The funds involved transferred half of their investment portfolios to investment funds, specifically set up to manage pension assets. Other pension funds in the future will be able to participate in these funds. The policy has been adopted to enhance portfolio management efficiency. At the end of June, these investment firms had largely reinvested in bonds, meaning the shifts in the second quarter have had less effect on the eventual portfolio instrument mix.

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