HOLLAND - The Dutch Association of Industry-Wide Pension Funds (VB) has highlighted the improving performance of its members.
VB said all industry funds accomplished the performance test 2006, which was the average z-score over the period 2002-2006.
Z-scores rate the implementation quality of the investments by a measure which indicates how a fund performed in comparison to a previous benchmark.
Presenting the annual results of its members’ performance last year, VB said none of the portfolios had been underfunded since the end of 2006, meaning that none of the schemes had a covering ratio below 105 %.
Coverage ratios climbed on average to 136% last year, compared to 122%, in the year before, said VB.
In addition, VB said the typical, unweighted investment return in 2006 was around 6.2% with equity, real estate and private equity performing particularly well.
The industry association also noted the stabilization of pension premiums and the improvement of funds’ indexation since 2006.
Peter Borgdorff, director of VB, said the good performance was down to rising contributions from employers and employees during 2002-2003, together with profitable assets.
Borgdorff said: “We were able to see the improvement of coverage ratios, and interest rates are also increasing. Last year we had a shortage on the indexation which also improved the position of the pension funds.”
The Pensions and Lifetime Savings Association (PLSA) is in the process of convening an industry-wide group to take forward the work of the Institutional Disclosure Working Group (IDWG).
The Transfers and Re-registration Industry Group (TRIG) has given its support to an initiative which aims to complete occupational pension transfers within three weeks.
Scottish Widows has completed a bulk annuity deal for the Hitachi UK Limited Pension Scheme.