Pension funds add €25bn to portfolios
10 September 2009
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.
