ABP has announced that it saw an improvement in its financial position the second half of 2009, recording a return on investment of 15.1 per cent.

For 2009, ABP saw a return of 20.2 per cent, and the pension fund also saw this reflected in the coverage ratio (of assets to liabilities), which rose from 98 per cent to 109 per cent. However, ABP has taken into account the changes in average life expectancy, and as a result has adjusted its liabilities. These have had a (one-time) negative impact on the coverage ratio, causing it to decrease from 109 per cent to 104 per cent at the end of 2009.

"It is clear that ABP's financial position also improved in the second half of 2009," explained chairman of the Board, Ed Nijpels. "The coverage ratio rose and the rates of return were good. We are on the road to recovery but remain cautious, as it is uncertain what will emerge after the next bend. Financial markets remain unpredictable."

The return on investment was equal to €27bn for the second half of 2009, and the main drivers for this were stocks, real estate and corporate bonds. As a whole, the return for investment over 2009 was 20.2 per cent, or €35bn.

For 2010-2012, ABP has formulated a risk framework for the new strategic investment policy, which aims to ensure that the portfolio performs relatively well in a variety of economic scenarios. Although ABP's management believes a certain level of risk is unavoidable, it has included risk limitation in certain areas, for example when it comes to interest and inflation risk.

A higher weighting factor for investments of which the rate of return is linked to inflation, a decrease in the weighting factor of non-government loans and of 'stocks in developed markets' will be seen in the strategic portfolio, as well as an increase in the weighting factor of 'stocks in emerging markets'. It is hoped these changes to the portfolio will provide a better picture of the real liabilities trend over time, taking into account the provisional indexation.

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