Pension funds and insurers make profits on shares only

09/12/2005 09:30

Pension funds and insurance companies in the Netherlands realised share profits of 6 percent in the third quarter of 2005. These profits came to a total of more than 23 billion euro. Profits on bonds were slightly negative, however. The balance sheet total of pension funds and insurance companies rose by 35 billion euro to nearly 958 billion euro, according to figures from Statistics Netherlands.

Six percent return on shares

Pension funds realised more than 20 billion euro in share profits in the third quarter, a return rate of 7.1 percent. In the second quarter the return was 7.5 percent. Insurance companies realised share profits of more than 3 billion euro, putting their return at 3.1 percent. In the second quarter insurers had a return of 4 percent.

Together pension funds and insurers realised a return of 6 percent on shares. By comparison, the AEX all share index rose by 5.7 percent and the MSCI world share index by 6 percent in the third quarter.

Pension funds and insurance companies realised return of -0.2 percent on bonds. In the second quarter this was still 4.3 percent.

Pension funds invest mainly abroad

At the end of the third quarter, 87 percent of the total portfolio of pension funds was invested outside the Netherlands. For insurance companies this was 50 percent.

Non-euro countries accounted for 59 percent of foreign investments of pension funds, and 34 percent of foreign investments of insurance companies.