NETHERLANDS - Pension fund yields have continued their upward curve, after three consecutive years of negative returns on equity investments.
According to De Nederlandsche Bank (DNB), the rally in the equity markets has resulted in positive investment yields over the past two years, with pension funds’ yield for the financial year 2004 amounting to Ee48.6bn.
The industry-wide pension funds achieved an investment yield of e34bn, with company and occupational pension funds achieving e14bn and e1bn respectively.
In terms of percentage shifts, the investment yield at company pension funds rose by 8.8% in 2004 relative to 2003, while this increase at industry-wide pension funds came to an annualised 4.8%.
DNB attributed the difference in growth rate to the higher increase in average invested assets at company pension funds in 2004.
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