DECENT RETURNS FOR BELGIAN PENSION FUNDS OVER 2015

26 January 2016

Belgium, Brussels


Each year, Mercer’s Pension Investment Performance Survey (PIPS) analyses the returns of 80 active funds which represent about 50% of all active corporate pension funds in Belgium. Based on a limited sample of 40 funds surveyed, Belgian pension funds achieved a decent median return of +4.9% over the year 2015. The bulk of the profit can be attributed to equities (+ 8.8%) whereas bonds achieved a meagre +0.5%.

The best returns were achieved in the Japanese stock market and the real estate sector with respective returns as high as +21.3% and +18.4%. The Euro zone and U.S. stock markets also yielded very decent returns with +11.8% and +11.2%, respectively.

These excellent Japanese and US results are attributable in part to the weakness of the Euro: the U.S. Dollar increased 11.8% in value and the Japanese Yen increased by 11.1%. The weakest return was achieved by investments in the emerging markets with (-6.0%) for equities (-0.5%) for corporate bonds.

On the longer term – which is the investment perspective that corresponds best with the objectives of pension funds -  the overall situation is also positive.  Over a 5, 10,20 year period, corporate pension funds achieved an actual return, after inflation, of respectively +5.5%, +2.2% and +4.3% per annum.




The asset allocation over the different asset classes over 2015 is as follows:


About Mercer



Mercer is a global consulting leader in talent, health, retirement and investments. Mercer helps clients around the world advance the health, wealth and performance of their most vital asset – their people. Mercer’s more than 20,000 employees are based in 43 countries and the firm operates in over 140 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global professional services firm offering clients advice and solutions in the areas of risk, strategy and people. With 57,000 employees worldwide and annual revenue exceeding $13 billion, Marsh & McLennan Companies is also the parent company of Marsh, a leader in insurance broking and risk management; Guy Carpenter, a leader in providing risk and reinsurance intermediary services; and Oliver Wyman, a leader in management consulting. For more information, visit www.mercer.com. Follow Mercer on Twitter @mercerbelgium.


 


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