NETHERLANDS - PME, the Dutch metal and electro-technical engineering sector fund, has announced its funding ratio has increased 5.2% over the past year.
The fund has reworked its asset mix this year and has reduced its fixed income exposure from 46% to 41% and equity exposure from 41% to 39%, as well as a 1% drop in property exposure to 6%. This was to clear assets for its special projects investments.
The funds special projects included Chinese equities, North American forestry and life settlements which make up 7% of the fund and returned 31.9% last year.
However, the total return for the fund was dented because of a -3.1% return on the interest rate hedge, investment return was 8.3% but total return was only 5.2% because of the interest rate rise in 2007.
The fund also scored second best in the Dutch responsible investment benchmark.
The recently published Dutch responsible investment benchmark, a study paid by Oxfam Novib and the Ministry of Foreign Affairs, showed that PME scored second best, just after PGGM.
The benchmark rates the policy, operations and transparency on responsible investments of the 30 largest pension funds and pension insurers.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.