Investment portfolio

Equities
The PH&C equities portfolio has a broad global spread with assets placed in shares, private equity and convertible bonds. The bulk of the portfolio is placed discretionally in listed shares in developed markets by Robeco, T. Rowe Price and Acadian. Emerging markets account for a minor portion (10%). In the case of Robeco these investments are not discretionary but are in the form of indirect placements via investment funds. In the case of Acadian asset management is wholly discretionary.

At year-end 2006 the Fund’s equities portfolio was worth € 1.239 billion. PH&C has been investing in private equity since 1 January 2004.

Fixed income securities
The PH&C fixed income portfolio encompasses bonds, loans (including private placements), mortgages and liquidities. The bond portfolio has a broad spread and is invested in government bonds (nominal and inflation protected), corporate bonds and high yield bonds in Europe and North America. A small portion of the portfolio is invested in state bonds in emerging markets.

The mortgage portfolio consists of indirect placements via participatory holdings in Achmea Vastgoed mortgage funds. These funds issue mortgage loans to Dutch companies and individuals.
At year-end 2006 the Fund had combined assets of € 1.021 million in fixed income securities managed through F&C, Western Asset Management en Achmea Vastgoed (mortgages only).

Property
The property portfolio consists of holdings in listed property funds and closed end property funds managed by F&C and Achmea Vastgoed respectively. At year-end 2006 the Fund’s property portfolio was valued at € 213 million. The closed-end funds invest in commercial property in the Netherlands including retail, office and industrial property and housing. The listed property funds invest worldwide.

Commodities
Since the beginning of 2006 PH&C has been investing in commodity futures through a Western Asset Management fund.