NETHERLANDS - ABP's chief investment officer Tom Steenkamp has signalled the pension giant may reduce the stake of oil assets in its commodities portfolio.
Speaking at a press conference, Steenkamp reportedly said the S&P GSCI index, used as a benchmark by ABP, invested a lot in oil and the fund may want to diversify away from that.
An ABP spokesman added that Steenkamp's remarks were made in reference to a study on the composition of the commodities portfolio in preparation for the fund's 2008 investment plan.
Steenkamp’s comments follow the release of ABP's investment results for the first half of 2007.
These showed that despite an increase in interest rates, the ABP investment portfolio returned 3.1%.
The fund, which has over €215bn in assets under management, said the main contributors to positive performance were private equity, shares and hedge funds.
This is because private equity delivered a return of 18.2%, shares yielded 9.2% and hedge funds produced a return of 8.5%.
In contrast, the return on fixed-interest and real estate was slightly negative, delivering -0.7% and -1.9% respectively.
The organisation added that as a result of the increased capital and decreased liabilities, the coverage ratio in the first six months of 2007 rose by over 15 %to 148.8%
Commenting on the results, Dick Sluimers, chairman of the ABP Executive Board, said: “If the situation remains as it is the ABP board is likely to grant full indexation at the end of the year, which decision fulfils our ambition to structurally adjust pensions to the wage trends in the governmental and educational sectors.”
The Pensions and Lifetime Savings Association (PLSA) is in the process of convening an industry-wide group to take forward the work of the Institutional Disclosure Working Group (IDWG).
The Transfers and Re-registration Industry Group (TRIG) has given its support to an initiative which aims to complete occupational pension transfers within three weeks.
Scottish Widows has completed a bulk annuity deal for the Hitachi UK Limited Pension Scheme.