NETHERLANDS - Stichting Pensioenfonds ABP saw its liabilities drop by €11bn ($16bn) in the first quarter primarily because of rising interest rates.
Its coverage ratio increased by seven percentage points in the first quarter to 112%, the fund said in its quarterly report. During the quarter, the nominal market interest rate increase by 0.3 percentage points and finished the quarter shy of 4%.
ABP said the volatility in interest rate movement continues to pose a risk to the fund. The rate was 2.5% at the end of September.
The return on investments in the first quarter totalled 0.9% with real assets performing the strongest. Real assets returned 1.9% in the quarter. Hedge funds and global tactical asset allocation returned 0.7%, fixed income returned 0.5% and overlay strategies were down 0.3%.
ABP invests 53.6% in real assets, 38.7% in fixed income, 6.1% in hedge funds and GTAA and 1.6% in overlay strategies.
Females can expect to live a greater number of years in poor health than males, according to data from the Office for National Statistics (ONS) for 2015 to 2017.
Scottish higher-rate taxpayers will benefit from more pensions tax relief than workers on the same salary anywhere else in the UK as income tax bands continue to diverge.
Schemes risk breaking the law and being forced to wind up as The Pensions Regulator (TPR) warns some may be master trusts but do not know so.
As a hectic 2018 draws to an end, Jonathan Stapleton wishes readers a quieter 2019.