Dutch civil service pension fund ABP, one of many greatest pension funds on this planet, paid €2.8 billion in prices to personal fairness funds final yr, in keeping with its annual report.
The fund, which pays the company pensions of 1 in six folks working within the Netherlands, has not put up pensions for years, as a result of its property have fallen beneath the really helpful ranges.
ABP chairman Harmen van Wijnen informed information web site Nu.nl that the funds signify a dilemma. ‘It is an awful lot of money,’ he stated, including that through the use of personal fairness homes, the fund has been in a position to enhance its property, making it extra doubtless that pensions could be elevated.
ABP makes use of personal fairness funds to spend money on firms which aren’t listed on the inventory change and the €2.8 billion generated €14 billion additional in returns, he stated. ‘That is around €4,500 per participant, while the cost is €1,100,’ Van Wijnen informed the web site.
Despite the advantages, Van Wijnen stated ABP ought to have a correct, crucial take a look at the technique and the prices which the fund has to pay to handle its total portfolio.
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