Dutch pension giant, PGGM, is set for a number of strategic changes to its investment strategy.
According to PGGM’s annual report for 2000, the EUR52.6bn fund is aiming to boost its private equity investment to 7.5%.
Private equity investments grew from 4% at the end of 1999, to 6.3% at the end of 2000.
This move puts PGGM - the second largest pension fund in The Netherlands - in line with Dutch superfund ABP, which recently lifted it private equity portfolio from 2% to 4%.
According to PGGM, “a portfolio of European midcap equities is also being built up”.
Another change on the agenda includes an expansion in 2001 of the US and Japanese fixed income briefs. The total fixed income portfolio makes up about 30% of PGGM’s complete portfolio.
There seem to be no plans at this stage to move into to hedge funds.
The results in the report for the Zeist-based fund followed an ALM study in 2000. PGGM conducts a study every five years.
PGGM was unavailable for comment during press time.
*In an earlier interview with IPN, Niels Kortleve, director of investment strategy for PGGM, also stated that the fund hopes to eventually shift all internally and externally managed portfolios in the direction of Socially Responsible Investment.
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