Dutch pension fund SNS Reaal returned 6.9 per cent on its investments in 2023, its annual report has revealed.

This represents a significant improvement on the previous year, when the return was -28.2 per cent.

The pension fund’s return on its matching portfolio was 8.3 per cent, while its return on its return portfolio was 5.6 per cent.

During the year, its pension assets grew from €3bn to €3.2bn due to the positive investment returns.

The positive returns were driven by the pension fund’s equity investments, with its equity assets rising from €699m to €849m during the year.

Meanwhile, its fixed income investments fell in value slightly, from €2.05bn to €2.04bn, as did its property investments, from €327m to €301m.

SNS Reaal’s coverage ratio increased from 114.2 per cent to 116 per cent during the year.

Its policy funding ratio, which is the average of the previous 12 months’ coverage ratios, also rose, from 116.5 per cent to 117.5 per cent.

The pension fund increased pensions by 3.39 per cent at the start of 2023, but it was not able to increase pensions at the start of 2024.

Its annual report noted that the Future Pensions Act came into effect on 1 July 2023, with all pension schemes required to be converted to the new system by 1 January 2028.

SNS Reaal is planning to transition to the new system on 1 January 2027, the annual report stated.

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