The second largest pensionfund of the Netherlands, PGGM, has made a return on investment of minus 3 % over the first six months of this year.
This according to a spokesperson of PGGM on Monday. He won’t reveal how big the impact will be on this decline of the coverage ratio. “We never make interim statements about that.†According to the spokesperson it’s not a fact that a decline in return equals the decline in coverage ratio. “There is a large calculation in between.â€
The coverage ratio indicates the proportion between the obligations and the capital of a pensionfund. According to its own standard the coverage was at 112 percent last year. Following the standard of supervisor PVK the coverage ratio was at 124 percent.
Pensionfunds have been largely affected over the last few months by the declining rates on the stock markets because a large part of their capital is invested in shares. PGGM, the pensionfund of the healthcare sector, has acquired shares over the last weeks to keep balance in the total portfolio.
“We strive for a partition where 45 to 55 % of our capital is invested in sharesâ€, says the spokesperson. “That is our policy and we won’t deviate from that. Because of the declining rates the value of our shares decreased significantly and therefor the importance in the total portfolio. “To keep that up to the mark, we’ve had to buy shares over the last few weeks.â€
PGGM is in control of over € 50 bln. Besides shares, the money is also invested in real estate, bonds and other alternative investments. In 2001 the total return of investment was 6 percent. The block of shares lost 12,7 percent.
De Financiële Telegraaf
