Three of the biggest pension funds in the Netherlands have been hit hard by the torrid market conditions of the third quarter, with two of them dropping below a key solvency ratio set by the country's central bank and forcing them to start work on recovery plans.

ABP, the Dutch civil servants' pension fund that is one of the largest in Europe, shrunk by 5% to €195bn ($250bn). The €10bn loss during the three months to the end of September meant ABP has posted an investment return of -9.8% for the first nine months of the year.