Funding Dutch pension funds decline after referendum – NU.nl

The current funding ratio fell by an average of 3 percentage points compared to Thursday, consultancy Aon Hewitt said Friday.

Chief Commercial Officer Frank Driessen Aon Hewitt suggests that pension funds have become poorer in a few hours, more than 30 billion euros.

In recent days were investors just assume that there no Brexit would come. Stock prices and also walked the interest in those days. therefore the current funding level of the pension was increased by approximately 2 percentage points. Now is it a Brexit that profit is more than offset.

This, however, involves a decrease of the current coverage ratio. But funds must coordinate their policies in the so-called policy coverage, the average of the past twelve months.

“The influence of Brexit the policy coverage is therefore still limited. But time will this funding impact of find Brexit “

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Interest

The market rates fell sharply Friday. Different interest rates are currently about 0.15 percentage points lower than Thursday.

According to Aon

Hewitt is being dampened the effect, because the funds to calculate their pension even the so-called Ultimate Forward Rate (UFR) should go . The effect of the fall in interest rates on Friday morning will be visible in the long term.

Stocks

Moreover, the funds are less hard hit by the large price falls on the stock markets. Thus, the loss in the United States largely offset by the stronger dollar. In addition, lower interest rates have a positive effect on the value of government bonds.

“For the average pension fund, we therefore expect that the loss on investments less than 1 percent will be,” Driessen says. “That means there is vaporized an amount not exceeding several billion euros “

Door : NU.nl