Several Dutch pension funds have reported that they achieved improvements in their funding ratios in January 2023 as investment returns increased.

Pensioenfonds SNS Reaal saw its policy funding ratio increase from 116.6 per cent to 116.8 per cent during the month, as an increase in liabilities due to a fall in interest rates was more than offset by a rise in equity values.

Meanwhile, Pensioenfonds Hoogovens reported that its policy funding ratio rose from 128.6 per cent to 129.3 per cent during the same period, with its current funding ratio increasing from 125.4 per cent to 126.2 per cent.

The falling interest rates had a negative effect of 4.1 percentage points on the development of the current funding ratio, while its investment returns caused it to improve by 5 percentage points.

Pensioenfonds PostNL revealed that its current funding ratio remained the same at 130.5 per cent in January, while its policy funding ratio rose from 134.8 per cent to 135.4 per cent.

These movements were again negatively impacted by declining interest rates and positively effected by improvements in the pension fund’s investment returns.

Provisum’s policy funding ratio, which is the average of the previous 12 months’ current funding ratios, stood at 150.7 per cent at the end of January.

During the month, its current funding ratio increased from 138.6 per cent to 138.9 per cent.

Earlier this month, Aon revealed that the indicative current funding ratio of Dutch pension funds rose from 117 per cent to 120 per cent in February, after stabilising at 117 per cent in January.

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