Dutch pension funds have highlighted the need for greater investment in the Netherlands, urging the government to create more opportunities for institutional investors to invest in large public works.

Speaking to De Telegraaf, APG board chair, Gerard van Olphen, and ABP board chair, Corien Wortmann, emphasised that investments in the Netherlands are badly needed in order to accelerate economic recovery following the Covid-19 crisis.

They also highlighted a “missed opportunity” in the government's newly created National Growth fund, stating that whilst this is a “great initiative”, no one but the government may participate.

"The Growth Fund is fully focused on the €20bn in public investments. But surely you should want the €20bn to act as a flywheel, a catalyst for private investment,” Val Olphen said.

The pair also argued that the Dutch government lacks a clear plan for deploying public money and private investments together, stressing that these public-private partnerships are necessary for pension funds to invest more in the country.

Wortmann added: "If we were to invest an additional 1 per cent of ABP's capital in the Netherlands, we would be talking about €4.5bn.

"It is important to our participants that pension euros contribute to economic growth, employment and better housing in the Netherlands. These pension euros are now mostly invested in foreign projects.

"There are a few good examples of public-private partnerships. The renovation of the Ministry of Finance was one of them. And now the maintenance of the Afsluitdijk."

However, Van Olphen noted that the Belgian government is doing much better in creating such opportunities, having set up a fund “at a distance” from the government.

He explained: “The government itself invested € 90m . This was supplemented by €500m to €600m in bank financing.

“And then another €1.5bn was needed for thirty years of maintenance. That was private money that the government released by investing €90m itself.”

The pair argued that more opportunities to invest in Dutch public works would ensure pension capital can be invested, as well as offering the opportunity to make use of the knowledge and experience in the field of investment.

However, they also emphasised that the member must remain “paramount in this endeavour.

Wortmann added: “It is about the pension money of our participants. So we will have to deal with that in a responsible manner. That means that projects must also yield returns. ”

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