Dutch pension fund PGB returned 3 per cent on its investments in the first quarter of 2023, its quarterly report has revealed.

The pension fund’s investments to hedge the interest rate risk achieved a return of 2.1 per cent between the start of January and the end of March.

Meanwhile, its investments to achieve an extra return, such as equities, retuned 3.1 per cent over the quarter.

PGB’s returns on its defined contribution schemes were positive for all age groups, with returns for members aged up to 49 reaching 3 per cent, for those aged 50 to 55 returns were 2.9 per cent, while for participants aged 56 to 61 and 62 and older returns were 2.8 per cent and 2.7 per cent respectively.

Its policy funding ratio, which is the average current funding ratio over the past 12 months, decreased from 118.7 per cent to 118.6 per cent in Q1.

However, the pension fund’s current funding ratio increased from 113.2 per cent at the beginning of January to 114.7 per cent at the end of March.

Commenting on the quarterly report, PGB board chair, Jochem Dijckmeester, said: “Despite the turbulent economic situation, our financial position improved slightly in the first quarter of 2023.

“We achieved a positive investment result of 3 per cent and our current coverage ratio increased slightly.

“And that is good news for our participants, certainly also because we were able to increase pensions by 7 per cent from 1 January 2023 thanks to the rising interest rate.

“In 2022, we increased pensions by a total of 3 per cent in a short period of time.”

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