31/05/2011
By Ilonka Oudenampsen
Dutch pension fund bpfBOUW saw returns of 10% over 2010, hedging included, with equities returning 18.9%, according to the fund’s year-end results.
The industry-wide pension fund for construction workers, with assets of €29.4 billion at year-end 2010, said its total returns were €2.5 billion. Fixed income returns were 7.2%, while the return on real estate was 3.3%.
Due to lower interest rates and rising longevity, the coverage ratio of bpfBOUW at the end of 2010 was 106.2%, with liabilities of €26.9 billion. However, at the end of April the coverage ratio had risen to an estimated 112.2%.
On Friday, bpfBOUW and Pensioenfonds VolkerWessels (PFVW) announced that the latter will transfer the pension rights of its pensioners and deferred members to bpfBOUW. The PFVW members who work in construction will also be transferred to bpfBOUW. In total this will affect around 10,000 individuals and cover a transfer of approximately €1 billion in assets.
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