Dutch pensions to invest €100bn in risky assets boosting Europe’s defence efforts

Stay notified with free updates

Simply sign up Pension industry MEFT Digest – Directly delivered to your inbox.

Dutch pension funds are ready for plowing several billion euros for Europe’s risky assets, as their steps in a system without fixed facilities support the continent’s efforts to attract investment and strengthen its defense sector.

Roll -out reforms in the Netherlands can be € 2tn Pension Art – One of the largest in the world – Investment in private equity and credit investment in the next five years is about 5 percent points, the largest Dutch resource manager.

The Chief Executive of the APG Asset Management Ronald Uyezster told the Financial Times that “more interesting evaluation” and the desire to have a “real-world impact” is expected to be deployed in Europe’s “largest part” of € 100BN.

He added that Dutch funds may be able to “make more” for money Defense Continent initiatives say that APG has already invested about $ 2 billion in companies contributing to the defense industry.

Wister comments have arrived as the EU is under pressure to increase EU defense investment including European Central Bank’s former president Calling Mario Dragi last year On the block of increasing investment by € 800bn annually to invest in pace with the United States and China. US President Donald Trump has demanded the government more burden on Europe’s protection.

“There was a fine for private investment and credit risk that is now decreasing, which increases the budget to take more risk,” says Wister.

He also added that the reforms will allow investors to consider resources with “some higher risk profile”, as well as increase the “five-is-” percent “in the risky assets as well as the higher allocation for spreading private assets and credit.

In 2023, the Dutch Senator Pass a law To transfer the country’s professional pension system as a model where pension funds no longer guarantee members of a certain retirement. The transition is expected to take place between 2025 and 2028.

The old-defined benefit system has pushed schemes on low-risky assets like government bonds, with the need for pension funds closely to the assets with long-term pensions.

Funds will now be able to set the target return that can fluctuate with market movement, remove some responsible limits and increase their risk appetite.

It was a significant step because “psychologically, it keeps funds closer to the investment of regular life cycle … and in that step, Dutch pensions are probably taking very little risk”, Wister said.

The ABP, which is responsible for the pensions of Dutch civilian employees and the largest fund -managed by APG, is expected to be transferred to the new system by 2027.

At the end of last year, more than a quarter of ABP resources were in the private market. About 40 percent of its private equity exposure was in Europe, which also had 57 percent of the global allocation to the private credit.

Wister said that this geographical balance could continue under the new system and transferred to personal resources and credit “in the next five years” would be “” very slowly “.