The assets of pension funds have plummeted during the crisis. With a huge drop in both share prices and interest rates, liabilities of the pension funds went up dramatically as well. Many funds got into serious trouble, and needed to come up with emergency measures. Jelle Mensonides, financial advisor and former CIO of investments at ABP pension fund, explains what led up to these problems and moreover what lessons pension funds should learn from this. Many failed to properly asses all risks, as they mainly approached the problem from the investment side.
