Dutch pensions to invest €100bn in risky assets boosting Europe’s defence efforts

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Dutch pension funds are scheduled to plow tens of billions of euros in risky assets in Europe, as its transition to a system without fixed interest supports the continent’s efforts to attract investment and strengthen the defense sector.

The head of the largest Dutch assets director said that the reforms that are offered in the Netherlands can lead to the manufacture of 2 Toro pensions – one of the largest cancellation in the world – enhances investment in private investments in private stocks and credit investments by about 5 percentage points over the next five years.

“The largest part” of 100 billion euros is expected in Europe due to “more attractive assessments” and the desire to have “a real influence in the world”.

He added that the Dutch funds may be able to “more” to finance defense initiatives on the continent, saying that APG has already invested about two million euros in companies that contribute to the defense industry.

Wuijster’s comments came as the European Union was pressured to increase the investment in defense, as former European Central Bank President Mario Dragi called for accuracy to enhance investments by 800 billion euros annually to keep pace with the United States and China. US President Donald Trump also called on governments with greater burdens on Europe’s security.

“There was a penalty for private investments and the credit risks that are now decreasing, which increases the budget to bear more risks,” Wagster said.

He added that the reforms will allow investors to consider assets with a “slightly higher profile”, which predicts the increase in the “five” percentage points in risk -fraught assets, in addition to the high allocation of private assets and publishing credit.

In 2023, Dutch members of the Dutch Council passed a law to transfer the country’s professional pension system to a model that no longer retirement pension funds guarantee a steady retirement income for members. It is expected to move between 2025 and 2028.

The ancient benefits system pushed the plans to low -risk liquid assets such as government bonds by requesting pension funds to closely match the assets with long -term pensions.

The funds will now be able to put targeted returns that can fluctuate with market movements, remove some restrictions that depend on responsibility and increase their appetite for risks.

This was an important step because “psychologically, it puts the money closer to investing the normal life cycle … and on this procedure, it may not risk the Dutch pensions.”

ABP, responsible for the pensions of Dutch civil employees, and is largely expected to the largest APG -run box with 544 billion euros of assets, moving to the new system by 2027.

At the end of last year, it was slightly more than a quarter of ABP in private markets. About 40 percent of exposure to private stocks in Europe, which also had 57 percent of its global allocation in private credit.

Wuijster said that this geographical balance can continue under the new system, and that the shift to private assets and credit will be a “very gradual” process “happening” over the next five years.