ABP pension fund aims for fewer bonuses for ‘Wall Street men in expensive suits’

Pensioenfonds ABP is struggling with the performance bonuses it pays out to investment companies every year. Last year, 2.8 billion euros went to so-called private equity houses. The pension fund approves this after notification from Nu.nl.

These investment companies invest money on behalf of ABP in companies that are not listed on the stock exchange, such as start-ups. According to Nu.nl, this 2.8 billion euros was compensated by 14 billion euros last year.

no matter what

“When nervous traders, Wall Street men in big suspenders and expensive sewn suits show up, that is fairly true,” says Harmen van Wijnen, the new chairman of ABP in a blog post. † “I have a problem with that. Not because of hangers and suits, but because a select group of top investors received extremely high compensation for it. However profitable their returns may be, this is not in line with the situation. The social goal that ABP is persistently pursuing.”

At the same time, he points out that ABP desperately needs these investment companies for a good risk allocation. “Without them, ABP’s investment portfolio would yield significantly less return and therefore less pension money. So we are faced with this dilemma.”

“live discussion”

In the near future, ABP says it wants to have a vigorous discussion with other pension funds, financial institutions, politicians and investment companies themselves about performance fees. “Because a good return is good, but not at any price,” explains Van Wijnen.

The pension fund claims to have achieved a “nice return” of 61 billion euros on its investment capital of 551.6 billion euros last year. That capital has fallen again in recent months due to falling share prices. At the same time, however, the coverage of ABP and other pension funds increased due to rising interest rates. This brings the increase in pensions even closer.

Source: NOS