NETHERLANDS - The €81.1bn PGGM was the best performing Dutch pension fund in Q4 and 2006 overall, followed by ABP and PME.
PGGM's Q4 performance was largely due to its private equity (9.1%) and equities (7.4%) portfolios, while commodities (-7.1%) was the worst performer.
For 2006, real estate (29.3%) and private equity (26.9%) were the fund's top performers, and commodities was again the worst (-22.3%).
The €209bn ABP also fared well in the markets, returning 3.9% in Q4, and increasing its assets by €18.6bn over 2006 with a return of 9.5%.
PME meanwhile went from the best performer in the third quarter to worst in Q4 with a return of 3.4%. The fund's best performing asset classes were equities (9.1%) and real estate (3.1%), while commodities was the worst performer. Total return for 2006 was 3.4%.
All three funds remained in a strong financial position after what was a largely positive year overall.
In other news, PME announced it had expanded it’s forestry investments in the United States to €440m.
The new projects are located in the South East of the US. "Before investing, PME agreed with the management of the project to do the best they can to shift to sustainable forestry," the fund said in a release. PME invested an initial €250m in a forestry project mid-way through 2006.
This week's edition of Professional Pensions is out now
Collective defined contribution (CDC) schemes will need clear and transparent governance frameworks, as well as effective communication strategies, to be a success, the Work and Pensions Committee (WPC) has been told.
The aviation sector's constant evaluation of mistakes to improve safety should be applied to defined benefit schemes, as too many are making the same mistakes again and again, latest research shows.
A month of strikes are due to hit 64 universities from tomorrow over major reforms to the Universities Superannuation Scheme (USS).