Investments

ABP invests the pension contributions that participants and employers pay each month in various asset categories, such as real estate, equities and bonds. We do this because investing generates a higher return in the long term than saving. In the coming years, we expect an average return of around 4% per year. Of course, we do not invest haphazardly to achieve the highest possible return. Our investment professionals continually assess whether the risks we take counterbalance the expected return.

ABP aims for a diversified investment portfolio in terms of geographies, sectors and asset classes. In this manner, we can spread risks and limit the effect on the portfolio of an adverse development in a particular geography, sector or asset class. 

Every potential investment is assessed on four criteria: 

• Does it provide an attractive expected return?
• Is the risk acceptable?
• Are the costs not too high?
• Does the company operate in a sufficiently responsible and sustainable manner.

Our investment portfolio is the result of a meticulous investment process, involving expert professionals throughout the organization.

Also view the Investments Declaration.

ABP’s total invested assets amount to €465 billion (December 31, 2019). Over the past 20 years we have achieved an average return of over 7% on an annual basis. Due to structurally lower interest rates, we expect the average annual return to be around 4% in the coming years. 

Return on investments
2015 2,7%
2016 9,5%
2017 7,6%
2018 -2,3%
2019 16,8%
2020 6,2%

In our new policy on sustainable and responsible investing (2020-2025), we reestablish our goals as long-term investor and explain how we intend to achieve them. Our vision on a sustainable future looks toward 2050 and outlines our 2030 ambitions based on this vision. Our concrete goals for 2025 (for instance on carbon reduction in the equity portfolio and increased investments in the Sustainable Development Goals) are the first step on the way to achieving our long-term ambitions and vision - all built on the foundation of our 2015-2020 policy. 

You can view an English summary of our Sustainable and responsible investment policy here.

Or view the factsheet 'Our policy 2020-2025'.

We see three major transitions in the coming years that we address with our policy. These transitions have a decisive impact on companies' ability to create long-term value and on the lives of our participants. These three major transitions are: 

1. Addressing climate change and the need to transition to new energy generation and renewable energy sources; 
2. Conservation of natural resources, including increasing scarcity of raw materials and food; 
3. The digitalization of society, in which technology plays an increasingly important role.

We regard corporate respect for human rights not only as a prerequisite for all our investments, but also as the precondition for these transitions to progress justly. Additionally, we see good corporate governance as fundamental. Without good governance, good business management, and a good relationship with shareholders, companies cannot successfully address the three transitions in a sustainable and responsible way.

ABP’s approach to corporate governance is set out in the ABP Corporate Governance Framework and the ABP Stewardship Policy. With our asset manager APG we have made arrangements to deal with conflicts of interests in relation to stewardship activities.

ABP does not invest in: 

• Companies involved in the production of weapons that are banned by international treaties to which the Netherlands is party (cluster bombs, anti-personnel (land)mines and biological and chemical weapons). 
• Producers of tobacco and (important components of) nuclear weapons 
• Government bonds of countries on which the UN or EU has imposed a binding weapons embargo.

You can view the most recent exclusion list here

ABP published separate Sustainable and Responsible Investment Reports up to and including the 2019 financial year. As of 2020, this information is integrated into our annual report. 

Sustainable and Responsible Investment Report 2019
Sustainable and Responsible Investment Report 2018
Sustainable and Responsible Investment Report 2017
Sustainable and Responsible Investment Report 2016
Sustainable and Responsible Investment Report 2015

Taxes contribute to sound public finances and a stable society, in which social facilities are available and with which people feel connected. By dealing responsibly with taxes, ABP can contribute to a livable world in which our participants can enjoy their pension. To this end, we have drawn up a fiscal policy, with ten fiscal principles. 

In this position paper we explain our new tax policy. We also provide insight into the questions we receive about this and the importance of taxes for our participants.

• Overview corporate bonds
• External managers
  
• Top 100 largest investments 
• Listed investments