From around 2030, APG will invest exclusively for ABP, the largest pension fund in the Netherlands. In terms of pension administration, APG will continue to work for various clients.
This follows from ABP's vision for the future, which was adopted at the end of 2024 (ABP owns 92 percent of APG). The pension fund wants maximum investment returns at 'acceptable risk' for its more than 3 million participants and wants to keep costs as low as possible. "If APG, as an asset manager, also serves other clients, it adds extra complexity, which does not necessarily yields extra returns," says ABP CEO Harmen van Wijnen.
ABP CEO and APG CEO Annette Mosman emphasize that the changes will only take effect after all eight APG customers have transitioned to the renewed pension system.
Economies of scale
APG will continue to provide pension administration services for multiple clients, so that it can benefit from economies of scale. However, APG will set up teams in this part that focus exclusively on serving ABP participants and employers. APG provides asset management and pension administration for four funds, and pension administration-only for the pension funds for Cleaning, Architectural Firms, PWRI and Medical Specialists.
As of the end of November 2024, APG managed about 552 billion euros in pension assets for ABP, and approximately 75 billion euros for the pension funds BpfBouw, SPW (the pension fund for housing corporations) and the employee pension fund PPF APG. These customers will therefore switch to another asset manager around 2030. In 2025, out of the above-mentioned long-term vision APG will develop specific operational models in consultation with APG's other shareholder, Sociaal Fonds Bouwnijverheid, and all funds involved.
Read a detailed explanation by Harmen van Wijnen and Annette Mosman in pension journal Pensioen Pro.