EUROPE - A managed default for Greece would not necessarily be a bad thing, as long as it was limited to Greece itself, according to APG, asset manager for the €240bn civil service scheme ABP.

APG spokesman Harmen Geers said: "ABP is already valuing its remaining Greek inflation-linked bonds at market prices and, depending on the level of haircut that will come with a Greek default, their value could even increase."

Last May, ABP still had in its investment portfolio about €480m of Greek inflation-linked bonds, maturing in 2025 and 2030.

According to Geers, APG has an emergency plan in place in the event of a Greek default, following stress tests as part of its three-year strategic investment plan.

"We have already taken precautionary measures, but only to a certain extent, as we can't bet the farm on Greece's going bust," he said.

Geers declined to provide details about the measures, but he stressed that his company was watching developments closely.

"Because we invest worldwide and in many asset classes for our clients, we will pretty much be able to absorb the shock of Greece going bust," he said.

A spokeswoman at ABP said the civil service pension fund had no plans to invest in the European Financial Stability Facility (EFSF).

She added that ABP's mission was to generate returns for its participants and pensioners, not to deploy assets for "political means", such as saving the euro.

APG has €275bn of assets under management for seven pension funds.

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