NETHERLANDS - Dutch pension funds posted a -2.8% loss on their investments in 2001, a fall of 5.4% from the previous year according to the latest figures from the WM Company.
According to the WM research, Dutch funds’ equities holdings declined sharply during 2001, an event that brought the overall return down, as equities formed 44% of the average pension plan’s asset allocation mix.
Dutch funds were able to post a positive 2.6% for 2000 despite a negative result for equities, as the loss was limited to -5.2%. However, the 2001 overall return was dragged down as losses from equities nearly trebled - the WM research found that equities posted a negative 14.7% for the year.
With the exception of emerging markets, all equity investments posted negative returns. Dutch, European ex-Netherlands and global investment portfolios fared particularly badly, posting returns of -17.8%, -17.8% and -13.8%.
However, the worst result of the year was posted by Japanese equities which returned a negative 25.5%. Cash and other investments posted a -3.5% return.
Only emerging markets provided a positive result - a miniscule 0.8% return. However, the emerging markets result is particularly impressive compared to its result from the previous year, a -27.3% return.
The 2001 return would have been worse, were it not for the steady performance of fixed income and positive double digit returns from real estate. Fixed income provided an average return of 6.5%, whilst property returned 11.7%. Both returns were down from the previous years results, 7.8% and 18.9% respectively.
The average asset mix during 2001 was 44% equities, 44% fixed income, 11% real estate and 1% cash/other investments.
By Geoffrey Ho
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