NETHERLANDS - Civil service scheme ABP is the first pension fund in the Netherlands to publish a declaration on its investment principles.

The new document has become mandatory, following the transparency rules of the EU directive on occupational pensions – Institutions for Occupational Retirement Provision (IORP). It replaces ABP’s five-years-old voluntary code for careful investment policy.

“The declaration on investment principles is meant for a better accountability for our investment policy to our members, and society in general,” ABP said.

Central to the new code is the relationship between the investment policy and the scheme’s liabilities, and the coherence between the policy on contributions, indexation and investment.

As a consequence of the directive, ABP has also introduced the ‘prudent person’ rule in its declaration, as a replacement of the concept of sound investing, it added.

ABP has also sharpened its description of sustainability and corporate governance. “If necessary and possible, we will use our say to encourage companies to sustainability,” it said.

The €182bn scheme has also added paragraphs on dealing with core and secondary activities. ABP will update its declaration of investment principles every three years, or immediately after an important change of its investment policy.

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