Dutch pension funds, with assets totaling €2tn, are planning to increase investments in risky assets in Europe by about 5 percentage points over the next five years due to reforms transitioning to a system without fixed benefits. This move aims to support Europe’s investment goals and bolster the defence sector, with APG Asset Management CEO Ronald Wuijster highlighting a potential €100bn increase in private equity and credit investments, mainly in Europe. The shift towards private assets and credit will be gradual over the next five years, following the passing of a law in 2023 to move away from the previous defined benefit system, allowing for more flexibility and increased risk appetite.
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