Dutch pension fund PME Pensioenfonds has reported a negative return of -23.27 per cent for 2022, with assets falling from around €64bn to approximately €50bn during the year.

The fall in assets was primarily attributed to the consequences of the war in Ukraine.

PME stated that the previous two quarters were characterised by the stabilisation of assets and that this will continue in early 2023.

The pension fund’s investment return in the fourth quarter of 2022 was 0.73 per cent, with assets and liabilities both increasing during the quarter, to €49.8bn and €45bn respectively.

Its current funding ratio decreased in the fourth quarter to 110.4 per cent, which was primarily driven by the decision to increase pensions by 6.2 per cent as of 1 January 2023.

Over 2022 as a whole, PME’s current funding ratio increased from 108.3 per cent to 110.4 per cent, while its policy funding ratio rose from 103.2 per cent to 111.7 per cent.

“It has been a year of many faces,” commented PME executive board chairman, Eric Uijen.

“After years of lack of indexation, this year it was possible to increase twice as much. Possibly thanks to relaxed rules in the run-up to the new pension system.

“This contradiction is difficult to explain given the losses on the stock market. But our obligations fell faster.

“While I am happy to be able to increase again, the economic and international situation in which we are doing this is worrying.

“The unprecedented high inflation means that participants and pensioners are having a hard time. I therefore hope for calmer economic waters for 2023.”

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