Dutch pension fund, Pensioenfonds ING, has reported that its DNB policy funding ratio fell by 0.2 per cent to 126.2 per cent during December.

Despite the fall, it remains above the required funding ratio of 119.9 per cent.

Pensioenfonds ING’s policy funding ratio has been consistently declining since October 2018, when it stood at 143.4 per cent.

The fund’s average real funding ratio also fell over the month, by 0.1 per cent to 93.3 per cent.

Pensioenfonds ING noted that liabilities increased in December, due to the allowances the fund granted and a fall in interest rates.

These factors led to the drop in Pensioenfonds ING’s coverage ratio, despite positive investment results during the month.

The decrease also had an effect on Pensioenfonds ING’s average real funding ratio, with allowances granted cited again as the primary driver behind the decline.

Lower interest interest rates and higher inflation expectations also contributed to the fall in Pensioenfonds ING’s average real funding ratio.

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