Stichting Pensioenfonds PGGM, Zeist, Netherlands, will conduct an asset-liability study of its 45 billion euro ($48.2 billion) pension fund as part of a plan to more actively manage its assets, said Kees Verhagen, PGGM spokesman. The study should be completed by the end of October. The plans current asset mix is 45% equities, 30% fixed income, 15% real estate, 6% private equity and 4% commodities.
According to the plans annual report, published April 10, its return on investments was -7.3% in 2002 and an annualized 5.1% for the five years ended Dec. 31, 2002. Annual investment returns need to average 9% for the plan to meet its obligations.
Separately, the plan announced that member contributions will be increased to about 13% of salary in 2004. Contributions were increased to 10.3% this year, from 7.6% in 2002.