Stichting Pensioenfonds ABP
Encyclopedia
Stichting Pensioenfonds ABP ("National Civil Pension Fund"), frequently referred to as ABP, is the pension fund
for government and education employees in the Netherlands
. For the year ended 31 December 2007, ABP had 2.7 million active participants and assets under management
of €216 billion ($313 billion), making it the largest pension fund in the Netherlands and among the three largest pension funds in the world .
ABP’s predecessor, the Algemeen Burgerlijk Pensioenfonds ("Dutch Civil Servants Pension Fund"), was established in 1922 following the adoption of the superannuation act, which regulated the pensions of civil servants. Originally, the pension fund was a government controlled entity that fell under the authority of the minister of home affairs in The Hague
. In January 1996, ABP was privatized although its primary function remains unchanged.
Since 1 March 2008 ABP's subsidiary APG administers the ABP pension scheme.
ABP is headquartered in Heerlen, Netherlands. Ed Nijpels
took the chair as Chairman of the Board
on 1st August 2009, he resigned in February 2010 because of his role in the failure of the DSB Bank
.
, surviving dependents' pension, and incapacity benefits. If the participant stops working between the ages of 60 and 70, he/she will receive the ABP Multi-Option Pension. If the participant dies, his/her partner and children may receive an ABP Survivor’s Pension. If the participant becomes unfit for work, the government will pay incapacity benefits under the Work and Income (Ability to Work) Act (WIA); ABP can supplement these benefits with an incapacity pension.
Since 1 January 2004, ABP pensions are based on average salaries during the course of the pensioners’ careers. This is known as an average-salary scheme. As a transition measure, benefits accrued before 2004 are based on the salary on 1 January 2004. Only members of the armed forces now have pensions based on their final salaries
Both contributions and accrual
of benefits are based on the salary minus a threshold (2008: € 10,100 per year). The reason for the threshold is the fact that the pension is a supplement to the AOW, etc.
In 2006, ABP and PGGM
, another large Dutch pension fund, considered a spinoff of their investment management businesses. The two pension funds coordinate their activities in private equity
through AlpInvest Partners
, one of the largest investors globally in the private equity asset class. Recently, AlpInvest Partners
was acquired by the Carlyle group.
, fixed income
, real estate
, commodities, hedge funds and private equity
.
According to information published by ABP, its largest US investments include ExxonMobil
, JPMorgan Chase, General Electric
, Goldman Sachs
, Morgan Stanley
, Citigroup
, Boston Properties
, Public Storage
, Microsoft
and Cisco Systems
.
. NHC manages a €7 billion portfolio of hedge fund
investments exclusively on behalf of APG Investments. NHC provides APG Investments a continuity of professional management of its hedge fund portfolio.
NHC was founded in October 2002 by Ira Handler as ABP's internal fund of hedge funds team and completed a spinout in 2006.
, founded in 1999 is the exclusive manager of private equity
investments for APG and fellow Dutch pension group Stichting Pensioenfonds Zorg en Welzijn
. AlpInvest is one of the largest private equity investment managers globally with over €40 billion (approximately $50 billion) under management
at the end of 2007. AlpInvest has offices in Amsterdam
, New York
, Hong Kong
and London
with over 60 investment professionals and over 100 employees. AlpInvest pursues investment opportunities across the entire spectrum of private equity: buyout
, venture capital
, growth capital
, mezzanine
and distressed
. AlpInvest also invests across the range of private equity investment channels:
Pension fund
A pension fund is any plan, fund, or scheme which provides retirement income.Pension funds are important shareholders of listed and private companies. They are especially important to the stock market where large institutional investors dominate. The largest 300 pension funds collectively hold...
for government and education employees in the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
. For the year ended 31 December 2007, ABP had 2.7 million active participants and assets under management
Assets under management
Assets under management is a financial term used denote the market value of funds being managed by a financial instutition on behalf of its clients, investors, depositors, etc. This metric is a sign of size and success against competition...
of €216 billion ($313 billion), making it the largest pension fund in the Netherlands and among the three largest pension funds in the world .
ABP’s predecessor, the Algemeen Burgerlijk Pensioenfonds ("Dutch Civil Servants Pension Fund"), was established in 1922 following the adoption of the superannuation act, which regulated the pensions of civil servants. Originally, the pension fund was a government controlled entity that fell under the authority of the minister of home affairs in The Hague
The Hague
The Hague is the capital city of the province of South Holland in the Netherlands. With a population of 500,000 inhabitants , it is the third largest city of the Netherlands, after Amsterdam and Rotterdam...
. In January 1996, ABP was privatized although its primary function remains unchanged.
Since 1 March 2008 ABP's subsidiary APG administers the ABP pension scheme.
ABP is headquartered in Heerlen, Netherlands. Ed Nijpels
Ed Nijpels
Eduardus Hermannus Theresia Maria Nijpels is a Dutch politician.-References:...
took the chair as Chairman of the Board
Chairman of the Board
The Chairman of the Board is a seat of office in an organization, especially of corporations.Chairman of the Board may also refer to:*Chairman of the Board , a 1998 film*Chairmen of the Board , a 1970s American soul music group...
on 1st August 2009, he resigned in February 2010 because of his role in the failure of the DSB Bank
DSB Bank
DSB Bank was a Dutch bank and insurer. The company was founded in 1975 by Dirk Scheringa, a former police officer. It was originally called Buro Frisia, but in 1998 the DSB Groep was founded which included Buro Frisia...
.
Pensions
The pensions supplement statutory benefits such as the old age pension AOWAlgemene Ouderdoms Wet
The Algemene Ouderdoms Wet is a 1956 Dutch law that installed a state pension, guaranteed for all. This law was a continuation of a 1947 temporary law. The old law was a proposal by Willem Drees and the new one came about when he was prime minister...
, surviving dependents' pension, and incapacity benefits. If the participant stops working between the ages of 60 and 70, he/she will receive the ABP Multi-Option Pension. If the participant dies, his/her partner and children may receive an ABP Survivor’s Pension. If the participant becomes unfit for work, the government will pay incapacity benefits under the Work and Income (Ability to Work) Act (WIA); ABP can supplement these benefits with an incapacity pension.
Since 1 January 2004, ABP pensions are based on average salaries during the course of the pensioners’ careers. This is known as an average-salary scheme. As a transition measure, benefits accrued before 2004 are based on the salary on 1 January 2004. Only members of the armed forces now have pensions based on their final salaries
Both contributions and accrual
Accrual
Accrual of something is, in finance, the adding together of interest or different investments over a period of time. It holds specific meanings in accounting, where it can refer to accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting...
of benefits are based on the salary minus a threshold (2008: € 10,100 per year). The reason for the threshold is the fact that the pension is a supplement to the AOW, etc.
Investments
ABP manages the bulk of its investments in-house through its captive investment unit APG Investments, a privately owned investment manager. APG operates as a subsidiary of Stichting Pensioenfonds ABP and was formerly known as ABP Investments.In 2006, ABP and PGGM
Stichting Pensioenfonds Zorg en Welzijn
Stichting Pensioenfonds Zorg en Welzijn is the second largest pension fund in the Netherlands...
, another large Dutch pension fund, considered a spinoff of their investment management businesses. The two pension funds coordinate their activities in private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
through AlpInvest Partners
AlpInvest Partners
AlpInvest Partners is a private equity investment manager and at the end of 2009 globally managed over €42 billion ....
, one of the largest investors globally in the private equity asset class. Recently, AlpInvest Partners
AlpInvest Partners
AlpInvest Partners is a private equity investment manager and at the end of 2009 globally managed over €42 billion ....
was acquired by the Carlyle group.
US investment activities
In the United States, as in Europe, ABP is a major investor in financial markets including public equityStock market
A stock market or equity market is a public entity for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.The size of the world stock market was estimated at about $36.6 trillion...
, fixed income
Fixed income
Fixed income refers to any type of investment that is not equity, which obligates the borrower/issuer to make payments on a fixed schedule, even if the number of the payments may be variable....
, real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
, commodities, hedge funds and private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
.
According to information published by ABP, its largest US investments include ExxonMobil
ExxonMobil
Exxon Mobil Corporation or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas...
, JPMorgan Chase, General Electric
General Electric
General Electric Company , or GE, is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States...
, Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
, Morgan Stanley
Morgan Stanley
Morgan Stanley is a global financial services firm headquartered in New York City serving a diversified group of corporations, governments, financial institutions, and individuals. Morgan Stanley also operates in 36 countries around the world, with over 600 offices and a workforce of over 60,000....
, Citigroup
Citigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
, Boston Properties
Boston Properties
Boston Properties, Inc. is a self-managed real estate investment trust based in Boston, Massachusetts. Its primary focus is "Class A" office space which it acquires, develops, and manages in the major markets of Boston, New York City, Washington, D.C., and San Francisco...
, Public Storage
Public Storage
Public Storage , a real estate investment trust , is one of the largest self-storage companies in the United States with headquarters in Glendale, CA.Public Storage built its first self-storage facility in 1972...
, Microsoft
Microsoft
Microsoft Corporation is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions...
and Cisco Systems
Cisco Systems
Cisco Systems, Inc. is an American multinational corporation headquartered in San Jose, California, United States, that designs and sells consumer electronics, networking, voice, and communications technology and services. Cisco has more than 70,000 employees and annual revenue of US$...
.
Hedge fund investments
New Holland Capital (NHC) is an independent investment company with 15 investment professionals based in New YorkNew York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
. NHC manages a €7 billion portfolio of hedge fund
Hedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
investments exclusively on behalf of APG Investments. NHC provides APG Investments a continuity of professional management of its hedge fund portfolio.
NHC was founded in October 2002 by Ira Handler as ABP's internal fund of hedge funds team and completed a spinout in 2006.
Private equity investments
AlpInvest PartnersAlpInvest Partners
AlpInvest Partners is a private equity investment manager and at the end of 2009 globally managed over €42 billion ....
, founded in 1999 is the exclusive manager of private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
investments for APG and fellow Dutch pension group Stichting Pensioenfonds Zorg en Welzijn
Stichting Pensioenfonds Zorg en Welzijn
Stichting Pensioenfonds Zorg en Welzijn is the second largest pension fund in the Netherlands...
. AlpInvest is one of the largest private equity investment managers globally with over €40 billion (approximately $50 billion) under management
Assets under management
Assets under management is a financial term used denote the market value of funds being managed by a financial instutition on behalf of its clients, investors, depositors, etc. This metric is a sign of size and success against competition...
at the end of 2007. AlpInvest has offices in Amsterdam
Amsterdam
Amsterdam is the largest city and the capital of the Netherlands. The current position of Amsterdam as capital city of the Kingdom of the Netherlands is governed by the constitution of August 24, 1815 and its successors. Amsterdam has a population of 783,364 within city limits, an urban population...
, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
and London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
with over 60 investment professionals and over 100 employees. AlpInvest pursues investment opportunities across the entire spectrum of private equity: buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
, venture capital
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
, growth capital
Growth capital
Growth capital is a type of private equity investment, most often a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition without a change of control of the business.Companies...
, mezzanine
Mezzanine capital
Mezzanine capital, in finance, refers to a subordinated debt or preferred equity instrument that represents a claim on a company's assets which is senior only to that of the common shares...
and distressed
Distressed securities
Distressed securities are securities of companies or government entities that are either already in default, under bankruptcy protection, or in distress and heading toward such a condition. The most common distressed securities are bonds and bank debt...
. AlpInvest also invests across the range of private equity investment channels:
- Equity co-investmentEquity co-investmentAn equity co-investment is a minority investment, made directly into an operating company, alongside a financial sponsor or other private equity investor, in a leveraged buyout, recapitalization or growth capital transaction. In certain circumstances, venture capital firms may also seek...
s - Primary fund investmentsFund of fundsA "fund of funds" is an investment strategy of holding a portfolio of other investment funds rather than investing directly in shares, bonds or other securities. This type of investing is often referred to as multi-manager investment...
- Mezzanine investmentsMezzanine capitalMezzanine capital, in finance, refers to a subordinated debt or preferred equity instrument that represents a claim on a company's assets which is senior only to that of the common shares...
- Secondary investments