Research: 30% of Dutch pension funds’ investment results don’t match their responsibilities
According to a recent study by Anton Kramer, a former fund manager at Aegon Asset Management, 30% of Dutch pension plans have failed to protect even a minimal pension for their members since 2007.
According to a recent study by Anton Kramer, a former fund manager at Aegon Asset Management, 30% of Dutch pension plans have failed to protect even a minimal pension for their members from 2007—2022.
Kramer’s analysis shows that 70% of pension funds have information ratios that are greater than zero, indicating that their investment returns are greater than the returns on their liabilities. Kramer is worried about the 30% of funds over a 15-year period with a negative information ratio, despite the fact that this is a clear majority.
PMT, the metal industry pension, was the only scheme out of the five largest Dutch funds with a negative information ratio in the research.
The top five funds, according to information ratio, were AVEBE, Kring Chemours (Achmea), TDV, ABN AMRO Bank, and Loodsen.
The four funds with the lowest scores are all very small sector plans. The funds Kappers (for hairdressers) and Medewerkers Apotheken (PMA, the fund for pharmacy staff should not be confused with SPOA, the fund for pharmacists) have the lowest negative information ratios of all.
Kramer: “On the basis of the past 15 years, the conclusion is that most pension funds do not make significant excess returns. It is being said that everyone will get a better pension in the new system, but on the basis of the excess returns realised by pension funds over the past years I find that a risky thing to assume.”