NETHERLANDS - Despite generating an annual return of 5.4% less than in 2005, the Dutch fund PGGM has been pronounced ‘out of recovery' by the Dutch Central Bank (DNB).
The 11% return on the total investment portfolio in 2006 was due to high returns in almost all asset classes. Real estate performed best at 29.3% but commodities reflected the falling oil price producing the only negative returns.
The target set out in the recovery plan by the DNB was to reduce the reserve deficit to zero by 2017. PGGM was declared out of recovery as by the end of 2006 its cover ratio had been above 130% for eight months.
Chairman of the board of governors Heino van Essen said: “It is of course good news that we have emerged from recovery so soon. But we mustn’t forget that the cover ratio depends heavily on conditions on the financial markets, the trend towards later retirement and rising life expectancy.”
Following recent criticism on a Dutch television program that funds were investing in American companies that made cluster bombs and landmines, PGGM has published a list of all the companies in which it holds stocks.
The fund’s website lists its US investments over 35 pages, Japanese investments over 12 pages and Europe (ex-UK) over 11 pages.
PGGM insisted it had got policies in place that dealt with the weapons industry and arms trafficking. It insisted a new policy had been put in place that covered companies producing cluster bombs and landmines.
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