At least two major Dutch pension funds fell below the required 125% government funding threshold because of the global market turmoil, according to financial statements the funds released today.
A third fund, Pensioenfonds Zorg en Welzijn, Zeist, remains above the limit, according to its third-quarter results.
Assets at the Stichting Pensioenfonds ABP, Heerlen, fell 5% to €195 billion ($250 billion) in the quarter ended Sept. 30, from €205 billion the previous quarter. Its funding ratio fell to 118%, from 132% at the end of June.
Pensioenfonds van de Metalektro, Zuidoost, also fell below the mark with a ratio of 112% at the end of September, down from 127% three months earlier. Assets fell 4.1% to €20.5 billion during the period.
PFZW, formerly known as PGGM, logged a 5.5% loss during the quarter, resulting in a decline in assets under management to €81.9 billion. However, the funding ratio remained above the limit, at 126%.
Under Dutch law, funds that fall below the 125% level are required to submit a plan to recover within a period of 15 years. ABP will submit its plan by the end of this year, according to the statement from the fund.
The funds long-term investment strategy is not likely to change as result of the shortfall, said Thijs Steger, spokesman for APG Groep, Heerlen, which manages assets for ABP.
PME spokeswoman Gerda Smits could not be reached for comment by press time.