NETHERLANDS - ABP lost €12bn from its overall value with Pensioenfonds Zorg en Welzijn (PFZW) losing €2.4bn in the first half of 2008 due to poor performing equity markets.
Mr. Brinkman, chairman, ABP board of trustees, said: "The ABP Pension Fund is also not immune to the effects of the credit crisis."
Brinkman said the fund had not suffered too badly due to efforts to diversify its portfolio but the biggest concern was a stagnating economy in combination with an increase in inflation
Brinkman added: "A positive note for a long-term investor such as ABP can be found in the fact that the present market also provides opportunities to make interesting investments at an attractive price."
ABP was stung by a -14.8% return on equities and -8% on real estate, but hedging the US dollar and keeping investments in hedge funds boosted results.
Commodities performed terrifically producing around a 44% return for both funds over the first half of the year.
Following a -2.9% return in the first quarter of 2008, PFZW actually saw a 0.2% performance in the second three months of the year.
Peter Borgdorff, managing director, PFZW, commented on the difficult quarter: "Once again it was clear how important it is to have a well-diversified portfolio.
"The cover ratio amounted to 143%, mainly due to the rise interest rates," Borgdorff added.
Structured credit and private equity investments helped PFZW limp into positive territory as equities wiped out €4.6bn off the fund value since January.
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