NETHERLANDS - PME, the industry wide pension fund for the metal and electro technical engineering industry, posted a return of 2.9% in the first quarter of 2005, outperforming Dutch giants ABP and PGGM.
In addition, the fund’s funding ratio rose to 118%, compared to 116% at the end of 2004.
PGGM posted a return of 2.7% and ABP posted a return of 1.6% for the first quarter.
PME’s overall return was boosted by strong performance from commodities (22.8%). Property posted a return of 1.3% while equities returned 2% and fixed income 0.6%.
Fund spokesperson Bram van Els said PME was “very happy” with the return, especially in comparison to the returns posted by Dutch counterparts PGGM, ABP and PMT.
PMT, the Dutch pension fund for metal workers and technicians, posted a return of 2.5%.
“The main reason for the good return was commodities, which returned almost 23%,” van Els said. “This was a very good quarter but we don’t think it will be like this for the rest of the year unfortunately. We have a deal with the Dutch bank (DNB) to restore our reserves and we are ahead of schedule for these plans.”
PME’s current asset allocation is 53% fixed income, 32% equities, 10% property and 5% commodities.
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