NETHERLANDS/UK - PGGM CIO Roderick Munsters says UK pension funds are happily invested in their own domestic markets and need not worry too much about gaining international exposure.
PGGM is the second largest pension fund in Europe, worth EUR52bn.
Munsters said that over the last decade Dutch pension funds had increased their holdings of international equities dramatically, from around 10% to around 70%, adding: The Netherlands is not our home market. The Eurozone is our home market.
But, he told delegates at the UK's National Association of Pension Funds' investment conference in Edinburgh that UK funds investing in the UK market had not caused underperformance, and from the risk perspective, apart from the mid-1990s, there has been no downside. However, Munsters did say that UK funds should look more at investing in alternative asset classes.
He told the conference: In the Netherlands we see the UK as a country of guidance in pensions.
By Luke Clancy
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers