NETHERLANDS - Pensioenfonds Zorg en Welzijn (PZFW) reported a decline in its funding level from 92% at the end the fourth quarter of 2008 to 89% at the end of the first quarter of 2009, data from its latest quarterly report reveal.
The fund said the market recovery in the final weeks of March was insufficient to offset earlier losses.
PZFW managing director Peter Borgdorff said: "We had another difficult quarter, although the second half of March showed a positive picture. We will shortly enter into discussions with our participants on the measures to be taken in order to restore our financial position."
A spokesperson for PZFW told Global Pensions there were four informative sessions the fund planned to hold with scheme members and pensioners. These sessions will take place around the Netherlands in May and June.
On the basis of the provisions of the plan PZFW submitted to Dutch regulator DNB at the end of March, the fund said it had "sufficient recovery capability to bring its cover ratio at least to the minimum required level of 105% in 2014".
The fund said the decrease in funding level occurred in January (month-end position: 91%) and particularly in February (month-end position: 85%), with a slight recovery in March.
It said it reported losses of 7.8% in its equity holdings, 17.5% in structured credit and 15.2% on public real estate.
In contrast, it said it recorded gains on high-income bonds (5.2%) due to a decrease in short-term interest rates in Europe and a narrowing of credit spreads.
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