At the presentation of its 2013 annual report, OGEO FUND, the fifth largest pension fund in Belgium1, showed excellent results: a financial performance of 7.38%2, a profit of €53 million and €515 million of assets in overfunding3.
Today OGEO FUND represents 4,019 ongoing or future pensioners spread among seven sponsoring enterprises4, €968 million of assets under management and a potential for development both in Belgium and abroad.
This outperformance resulted from OGEO FUND’s efficient, reactive and reduced cost structure.
Given the substantial amounts administered, OGEO FUND seeks to maintain very high standards of corporate governance. With this in mind, OGEO FUND decided to set up an Institutional Sicav (“Société d’Investissement à Capital Variable” - open-ended investment company), OGESIP Invest, allowing OGEO FUND to exercise greater control over asset managers.
In the autumn of 2013, OGEO FUND published a study on the financing of provincial and local government staff pensions in Wallonia and Brussels. One of the key findings within this study indicates that 70% of the municipalities are not building sufficient reserves to meet future pension costs.
Consistently proactive, OGEO FUND positions itself as a centre of expertise dedicated to fostering knowledge about pensions through the use of different tools, more specifically, through a perception survey (with results available soon), in addition to a round-table discussion with several pension experts.
1According to a ranking dated 31/12/2012 – Awaiting the official results from the BAPI (Belgian Association of Pension Institutions) on 31/12/2013.
2Performance higher than the average Belgian pension funds that display a performance of 6,73% (source: BAPI).
3Over-coverage: OGEO FUND’s 2013 year-end plan assets amount to €882 million compared to €367 million worth of obligations, i.e. an over-coverage of 140%.
4In the interest of administrative simplification, a merger between TECTEO and ALG took place on January 1, 2013.