A new white paper by the International Centre for Pension Management (ICPM) discusses how pension funds can generate productivity gains in the companies they invest in. Their productivity increases between 3% and 5% on average. The key: pension funds, like our clients, have a specific societal position and a long-term horizon.
According to the white paper by ICPM, a global network of pension organizations including both APG and our client ABP, this productivity effect materializes through four primary channels: the supply of funds, long-term commitment, engagement, and signaling. The ABP Netherlands Energy Transition fund (ANET) is one of the real-world case studies presented in the white paper to illustrate these productivity channels in action. The fund invests in often fast-growing companies that contribute to the Dutch energy transition with their products, data applications and digital technologies.
Rutger van Wersch, Senior Portfolio Manager at APG: “A large part of the ANET portfolio is made up of early-stage investments: companies that, for example, have validated their technology and need capital to take the next step. ANET’s investment often marks the first institutional funding for these ventures. We position ourselves as a long-term partner, provide strategic guidance and leverage our broad network of reputable likeminded peers and other contacts. It’s great to see that ANET’s investments not only contribute to the startup ecosystem in the Netherlands but also help demonstrate how the productivity channels investigated by ICPM come into play and potentially reinforce each other.”
Read the ICPM white paper here.