In our 4th quarterly report of 2022, Chairman of the Board Jochem Dijckmeester says:
“The war in Ukraine unfortunately has a lot of human suffering and has been going on for almost a year now. Closer to home, our participants noticed the effects of high inflation, with more expensive groceries and rising energy prices. As a pension fund, we saw a lot of unrest in the financial markets. It was a bad year for our assets. This was largely caused by the sharp rise in interest rates. But rising interest rates also had another effect, because it means we have to reserve less money for the pensions of now and in the future. For the first time since the economic crisis of 2008, we were able to increase pensions twice in a short period of time. The total increase in 2022 amounted to 3%. To better compensate for the persistent inflation, the Board decided in December to adjust the indexation policy, This made it possible to increase all pensions by 7% from 1 January 2023.”
Policy funding ratio 31 December 2022: 118.7%
The financial situation of the past few months is reflected in the policy funding ratio, which is an average over 12 months. This ratio increased in the fourth quarter from 117.7% to 118.7% on 31 December 2022.
Present UFR funding ratio 31 December 2022: 113.2%
The current coverage ratio fell from 118.5% to 113.2% in the third quarter. This concerns the so-called UFR funding ratio, which is a snapshot of the end of the month.
Click here to read more about the development of the UFR funding ratio and the policy funding ratio.
Return on investments up to and including 31 December 2022: -25.3%
The return was -25.3% over the first four quarters. The investments to hedge the interest rate risk (Matching) achieved a return of -44.7% over the first four quarters. The investments to achieve an extra return, such as equities, achieved a return of -10.1% over the first four quarters.
Investment Returns Defined Contribution Schemes 2022
The returns of our defined contribution schemes are negative for all age groups over the first four quarters: -15.2% for participants aged up to 49, -18.7% for participants aged 50 to 55, -22.1% for participants aged 56 to 61 and -25.6% for participants from 62 years of age.
Want to find out more? Read our quarterly report.