Dutch pension fund PMT achieved a return of 8.4 per cent on its investments in 2023, up from a return of -27.5 per cent in 2022, its annual report has revealed.

The pension fund’s coverage ratio fell from 106.7 per cent to 105.8 per cent during the year, while its policy funding ratio, which is the average current funding ratio of the previous 12 months, rose from 108.1 per cent to 109.9 per cent.

PMT’s positive investment return was driven by its return on equities during the year, which was 17.2 per cent.

Meanwhile, the pension fund returned 9 per cent on its fixed income investments, -1.9 per cent on property, and 0.5 per cent on ‘other’ investments.

In 2023, PMT’s invested assets in fixed income securities increased from €44.8bn to €49.4bn.

The pension fund’s invested assets in equities rose from €23.2bn to 25.4bn, while its property investments grew from €6.9bn to €7.3bn, and its assets in ‘other’ investments increased from €348m to €629m.

Overall, PMT’s invested assets increased from €75.2bn to €82.7bn.

Commenting in the foreword of the annual report, PMT board employee chair, Eunice Bronswijk, and PMT board employer chair, Terry Troost, said: “The year 2023 brought a lot of unrest. In the early months it was turbulent on the financial markets, with persistent high inflation and uncertainty about the direction in which the economy would move.

“Throughout 2023 we saw, in addition to the ongoing war in Ukraine, relations between the east and west are deteriorating.

“As a pension fund, we also look back on a year full of dynamics, changes and challenges. A milestone in 2023 was the entry into force of the new Future Pensions Act (Wtp).

“We are working hard on the future implementation of this new law, whereby we will inform our (former) participants and putting pensioners at the centre of all steps we take.

“An important foundation in the preparations for the Wtp is the renewal of the pension administration that we will complete in 2023 together with administrative organisations MN and PGGM have been established.

“With the successful transfer of the data of our 1.3 million participants, a future-proof platform has been created for the new pension scheme in the Wtp.

“In line with this, we have chosen, in close consultation with MN to transfer pension management to PGGM as of 1 July 2024.”

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