The Dutch pension funds for architects, general practitioners (Huisartsen), painters (Schilders), security staff (Particuliere Beveiliging) and company pension scheme Smurfit Kappa have now very few assets that are managed by Dutch pension asset manager PGGM.

Back in 2021, the firm decided to focus its asset management activities entirely on its largest client PFZW. The main reason for this was that PFZW no longer wanted to invest in pooled funds, preferring discretionary mandates.

For the five other clients, this was an unpleasant message, as they had to look for another asset manager and fiduciary.

The five funds in question have now all exited PGGM’s public market funds. However, they are still invested in funds that invest in private markets, which are more difficult to exit.

GP fund Huisartsen is by far the largest remaining client. This fund still has €1.5bn invested with PGGM.

In total, the five funds have a combined €2.5bn under management with PGGM.

In the coming months, the firm will discuss with the funds in question how their stakes in private investments can be reduced, PGGM said in its annual report.

The investments of the five clients still play only a small role in PGGM’s portfolio; in total, the manager had over €240bn under management at the end of last year.

Small loss

PGGM posted a modest after-tax loss of €1m. In 2022, the result after tax was still €9m. The loss was due to higher costs and a €300,000 write-down on a stake in Design Authority, a company the firm is invested in. Interest income of €7.5m (2022: -€300,000) kept the total loss to just €1m.

Earlier, fellow pension asset manager and administrator APG also reported a sharp rise in costs.

PGGM expects this trend to continue. For the current year, the firm sees costs rise faster than revenues.

“As a result, we also expect to end up with a negative margin for 2024 too,” the pension administrator said in its annual report.

This article was first published on Pensioen Pro, IPE’s Dutch sister publication. It was translated and adapted for IPE by Tjibbe Hoekstra