Dutch Pensions Pivot: €100bn Shift Into Riskier Assets to Back Europe and Defence

Dutch pension funds, managing about €2tn in assets, are preparing to channel roughly €100bn into riskier investments like private equity and credit, the FT reports. This shift is driven by pension reforms that move the system away from guaranteed benefits toward target-based returns, freeing funds from strict rules that kept them heavily invested in safe government bonds.

APG Asset Management’s CEO Ronald Wuijster said most of the new money will flow into Europe, where valuations are appealing and where pensions want to have real-world impact, including in defence. APG already has about €2bn invested in companies linked to European security. The move also aligns with EU calls to boost defence spending as geopolitical pressure mounts.

The transition will be gradual between 2025 and 2028. ABP, the largest Dutch pension fund with €544bn under management, expects to complete its shift by 2027, steadily raising exposure to private assets and credit markets.