NETHERLANDS - PME generated a return of 16% year to end September, beating returns at ABP and PGGM by a significant margin.
ABP and PGGM have reported year to date returns of 10.8% and 13.3% respectively.
Returns on commodities significantly boosted total returns at all three funds. PGGM generated 23.3% on its commodities exposure in Q3, PME earned 21.4%, and ABP 20.9%.
PME earned a Q3 investment return of 6%, set against a Q2 investment return of 6.3%.
PME’s funded (coverage) ratio improved to 127% at the end of Q3, from 124% at the end of Q2, and 118% at the end of Q1.
PGGM earned a 6% investment return for Q3. Its pension fund assets increased to e69.3bn, adding e4.6bn compared to Q2.
Else Bos (pictured), PGGM’s director of investments, said: “It is the tenth straight quarter that PGGM achieved a good overall return. I consider the past quarter as exceptionally good, since all major asset classes contributed positive and impressive returns in almost all the markets the fund invests in.”
On an annualised basis, PGGM’s five-year average return increased from 3.3% to 4.5%. The average annual return over the past ten years is now 10.0% a year, exceeding PGGM’s assumed long-term target return of 8.3% a year.
ABP achieved a Q3 investment return of 4.6%. Total assets for ABP at the end of Q3 were e186.9bn, improving the funding ratio from 116% in Q2 to 120% in Q3.
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