© Shutterstock
In the first quarter of 2023, Dutch pension funds saw their funding ratios improve relative to the previous quarter, as growth in their investments outstripped the increase in liabilities. Total investments went up by €30 billion to €1,469 billion, while aggregate liabilities rose by €19 billion to €1,262 billion.
The Dutch pension sector’s average funding ratio came to 116.5%. This represents a 0.6 percentage point increase from the previous quarter (see Figure 1). It is nevertheless below the figure for a year ago, which was 118.8%. This change is largely attributable to the indexation granted in 2022. The funding ratio reflects a pension fund’s current financial position, expressing the ratio between investments and liabilities.
The policy funding ratio came to 120.8% as at 31 March 2023. This represents a 0.6 percentage point increase from 31 December 2022. The policy funding ratio is the average of the funding ratios for the past twelve months. It increased because the funding ratios in the first quarter of 2023 were higher than those in the corresponding quarter of 2022.
We used the following statistics to compile this news release:
Income from foreign direct investment in the Netherlands flowing to low-tax jurisdictions has declined structurally since 2020, new figures from DNB show. Income flows with other countries remained more stable over the same period.
Read more Income flowing to tax havens through the Netherlands structurally down
Dutch mortgage funds received €2 billion in new investments from institutional investors such as pension funds and insurers in the first three quarters of 2024, DNB figures show. This is less than in previous years and can be attributed to market interest rates having risen sharply during 2022.
Read more Investor interest in Dutch mortgage funds continues to decline
The heightened international tensions can have an impact on financial institutions, according to De Nederlandsche Bank (DNB) in its supervisory strategy for 2025-2028 and in a study on the impact of geopolitical risks on financial institutions.
Read more Growing geopolitical risks impact financial sector
Dutch insurers and pension funds invest not only directly in listed equity and corporate bonds, but also indirectly via investment funds. New DNB figures on CO2 emissions of non-financial corporations relate to both types of investments and provide a more complete..
Read more Carbon footprint of Dutch insurers and pension funds in sharper focus
