23/05/2011
By Ilonka Oudenampsen
In 2010, the APG Group has recorded a total return of 13.3% for pension funds, totalling €32 billion. After a sharp decrease in the funding ratios of the APG customers, they have recovered in the reported year, the pension fund manager said.
Managed assets totalled €272 billion, while the operational result for 2010 increased to €189 million, up from €162 million in 2009. APG attributed the improvement largely to a decrease in operating costs.
At the end of 2010, APG Group worked for 32 customers who serve approximately 4.5 million participants, of which 2.8 million participants are in the public sector and 1.7 million in the private sector.
APG chief executive Dick Sluimers said the recovery shows that there cannot be enough emphasis placed on a long-term vision for pension funds.
“We must be careful not to be led mainly by short-term market developments, since that could turn out to be expensive.”
Pension funds are required to reflect their position in funding ratios based on a daily market interest, which has caused exceptional volatility in 2010. Sluimers said: "Low funding ratios are cause of concern with regards to the tenability of our pension system, while funding ratios that are increasing give the impression that all problems will be resolved by themselves. Both are false conclusions. The Netherlands has a resilient pension system, but the measuring scale should do more justice to the long-term character of possessions and obligations of funds."
APG feels that another point of concern is the position of the Dutch in asset management as compared to foreign parties. At the moment about two-thirds of total Dutch pension assets is managed abroad, mainly in London and New York.
About ten years ago this was only a third, and APG said a major cause for this is the stricter rules and regulations that Dutch funds must adhere to. Chief investment officer of APG, Angelien Kemna, commented: ‘It is important that the playing field of the management of pension assets is equal to Dutch and foreign parties. Otherwise it will be very difficult for Dutch pension managers.’
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