Close look at Apna-policy

November 25, 2008 4:52 AM

Upon request of Minister Ersilia de Lannooy (Finance, PNP), the Bank of the Netherlands Antilles has been investigating the procedures, decision-making processes, figures and policy choices of the General Pension Fund of the Netherlands Antilles (APNA).

The Apna is cooperating with this investigation that started last week Monday, after the minister has indicated her decision in writing: “As a result of the presentation of Apna’s director Philip Römer in the Parliament of the Netherlands Antilles and also in relation with the degree of cover of 93 percent, I have asked chairman of the board Emsley Tromp of the BNA to, based on the National- ordinance Apna (Pb. 1997 nr. 311, ‘Lv. Apna’), investigate in the first place the investment-policy of the Apna and furthermore – more on the long-term – the general policy regarding the management of the fund and advice me on that.”

It is clear that Parliament and the ministers are worried about the financial blow that the Apna had to take due to the ‘melt down’ of the international investment world. It was a true bears market between June and September, where it was constantly about losses and pessimism.

The current investigation of the BNA is evidently aimed at considering where and how to make the investment-strategies of the Apna sharper. It cannot be concluded from the letter of the minister or from other sources that, like a rumour that is going around says, they are after the Apna-officials, like Römer, because ‘some people will have to be punished’.

Executive secretary Royston Sling of the Apna says that it is not logical to charge Römer with the recent drops on the stock markets that surprised the entire world – certainly not when it was this same Römer that that led the fund from dropping during the market depression that lasted from 2000 through 2002. “Thanks to his policy, we moved from a level of cover of 97 percent to 109 percent in 2007. He has proofed his capacities.”
It is about time that the Antilles bring the manageability of their ample pension scheme up for discussion. The bad markets at the beginning of this millennium pushed many Dutch pension funds into a cover up situation.

Many stepped over from the expensive end-wage scheme to the cheaper middle-wage scheme with conditional indexation, so that they could built-up big reserves. ABP, the next biggest pension fund in the world, reported in the beginning of October a negative return of almost 10 percent on investment. For comparison, The Apna reported a negative yield of 7 percent for that same period.

The supervision of pension funds and pension companies are with the BNA anyway. Article 20 to 25 inclusive of Lv Apna regulates this supervision to the letter. BNA is on Apna’s heels with this investigation. But it is Apna self that sends her annual reports, year- and actuarial reports, minutes of board meetings, and other documents to the supervisor, BNA also performs an inspection investigation every three years. The Apna meets with the BNA twice a year about matters that are of importance for the fund.

(Source: National newspaper Amigoe)

24 November, 2008