Stichting Pensioenfonds ABP, Heerlen, the Netherlands, today reported an investment return of 11.5% and total assets of €168 billion ($216.22 billion) as of Dec. 31, according to its annual report. But market-valued liabilities increased by €18.1 billion because of last year's fall in interest rates, and the plan's coverage ratio slipped to 121.3% as of Dec. 31, from 124.6% the previous year.
The plan will undertake an asset-liability modeling study this year to make sure it complies with new local regulations and will require liabilities to be valued at market rates. The plan will likely tackle its future funding using its long-term investment policy rather than using large and expensive buffer funds whatever the results of the study, said ABP spokesman Marcel Vleugels. He declined to discuss any possible investment policy changes.