The Netherlands’ Pensioenfonds Metaal & Techniek (PMT) had an investment return of -27.5 per cent in 2022, its annual report has revealed.

During the year, the pension fund’s invested capital declined from €101.9bn to €75.3bn.

More than half (59.5 per cent) of its investments were in fixed income assets, while 30.9 per cent were in equities, 9.2 per cent were in property and 0.4 per cent were in ‘other’.

In total, €12.3bn of its assets were invested in the Netherlands, corresponding to 16.4 per cent of its invested capital.

At the end of 2022, PMT’s funding ratio was 106.7 per cent, roughly the same level as at the end of 2021.

However, the ratio was generally higher throughout the rest of the year, reaching a high of 111.5 per cent in October 2022.

The pension fund paid out €1.7bn in pensions during the year, while incoming contributions totalled €2.9bn.

In 2022, PMT voted at 1,757 shareholders’ meetings and reduced its CO2 emissions by 17.1 per cent.

Commenting within the report, the PMT accountability body (VO) said: “The VO continues to be concerned about the financial position of the fund, also with a view to the transition to the new pension system.

“In 2022, PMT's assets fell by almost €27bn. This was partly caused by geopolitical developments such as the war in Ukraine, the sharp rise in inflation and PMT's risk attitude, which has opted for a high interest rate hedge.

“Due to the rising interest rates, the fund's liabilities decreased, so that PMT was less affected by the losses on balance, but that does not alter the fact that the VO continues to monitor this with full attention.

“All the more so because the pursuit of an inflation-proof pension could be jeopardised.”

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