Stichting Pensioenfonds ABP, Heerlen, Netherlands, returned 5.7% on its investments in the third quarter, the pension fund announced Thursday.
The fund returned 10.5% for the first nine months of 2010, according to a news release from ABP. It returned 4.6% in the first half of the year and 20.2% for all of 2009.
The pension fund had €231 billion ($323 billion) in assets as of Sept. 30, up 6% from the previous quarter and 11% above the end of 2009.
Despite the returns, the plan’s funding ratio was 94% as of Sept. 30, down one percentage point from three months earlier. The funding ratio varied during the latest quarter, up as high as 98% on July 31 and down to 88% one month later, according to ABP. Plan officials blamed fluctuating interest rates for the ratio volatility.
ABP had a funding ratio of 104% at the end of 2009.
Under ABP’s funding recovery plan, its funding ratio must be at 96% on Dec. 31, otherwise pension contributions would temporarily be raised or benefits cut — moves the pension fund considers to be “a last resort,” according to the release.
Based on asset class, ABP’s fixed-income returns for the third quarter were 2.8%; real assets, including public and private equities, returned 6.3%; other investments, including hedge funds and global TAA, 2%; and overlay, 1.1%. Its asset allocation as of Sept. 30 was 51% real assets, 40.4% fixed income, 6% other investments and 2.6% overlay.