Private equity drives returns for ABP
Dutch LP Stichting Pensioenfonds ABP generated 15.4% returns from its private equity portfolio over 2018, up from 9.7% the year before, according to its 2018 annual report.
However, the entire portfolio delivered negative returns, amounting to -2.3%, over the same period. This comes as a result of the turbulence in the financial markets, which has heavily impacted the pension fund's assets, especially in equity investments. The trade war between the US and China, concerns about Brexit, and the expectations of economic growth were among the reasons behind the turbulence, according to the report.
Private equity has been the best performing asset class though the year, followed by infrastructure (12.4%) and hedge funds (8.5%).
The Dutch pension fund has invested 5.2% of its portfolio in private equity. Recent commitments include InvestIndustrial IV Build-Up Fund and Avedon Growth Capital III.
ABP has €399bn in available assets, as of December 2018.
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