NETHERLANDS - PME has gone from worst performer among the Dutch pension fund giants in Q2 to beating both PGGM and ABP to top spot in the third quarter.
All three funds achieved positive returns after a poor second quarter, a particularly impressive result given the heavy losses incurred on their commodities portfolios.
PME, the pension fund for the metal and electro technical engineering industry, returned -2.7% in Q2 but bounced back strongly with a solid 4% return, compared to ABP's 3.9% and PGGM's 3.1%.
However the fund was by far the worst performer year to date on 0.2%, with ABP returning 5.4% and PGGM an impressive 6.3%.
All three funds suffered heavy losses on their commodities investments during the quarter, largely due to the oil prices. PGGM fared worst at -18.1%, followed by ABP on -15% and PME on -13.9%
ABP surpassed for the first time €200bn during the quarter, finishing on just over €201bn. PGGM's AuM stood at €77bn.
Looking at the specific asset classes, real estate was the best performer for both ABP (10%) and PGGM (8.8%), while for PME it was equities (8%).
In other news, WM Performance Services today released results of the Dutch Pension Fund Index (DPFI) for Q3, showing a return of 3.8%.
According to the findings, currency hedging had only a small impact upon the total return, lowering it by 0.2%, while the year-to-date performance for the the DPFI was up 4.3%.
Equities performed solidly in the quarter, posting an average return of 5.9% on the back of ongoing good company results and the positive interest rate environment.
All major regions showed similar returns with the exception of Japan, which lagged behind at only 0.2% for the quarter.
Equities have also returned 5.9% for 2006 to-date, recovering healthily in Q3 from the stagnant performance in the first half of the year.
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