- average return around 7 percent
- implementation costs lowered
- growth in sustainable, renewable investment
- innovation through cooperation with funds
APG achieved an average return over 2017 of around 7 percent (over the different funds, this varied from 5.6 to 7.9 percent) for its pension funds and their participants. At the same time, APG succeeded in reducing the implementation costs per participant whilst maintaining high quality service provision. APG is a financially healthy organization. APG’s turnover for 2017 was €1,052 million. The net result was €47 million. These results were announced in the Annual Report 2017 published today.
As a leading investor, APG developed new initiatives. In 2017, for example, APG announced that it would be investing in Chinese equities together with E Fund. APG and E Fund, one of the biggest investors in China, are sharing knowledge in the field of asset management, ICT and pension administration. The partnership fits into APG’s strategy of expressly investing in sustainability and growth markets. APG expects to achieve more return for participants in these markets in the long term.
Recently, APG announced that it would be using artificial intelligence for sustainable investment. To this end, APG acquired the data analytics activities in this field from Deloitte Nederland. This business unit is well known for its great expertise and knowledge at the cutting edge of artificial intelligence, big data, and sustainable investment. The takeover will significantly accelerate APG’s use of artificial intelligence and big data for sustainable and responsible investing.
Cooperation with ABP and SPW resulted in innovative products for participants. With ABP, the personal pension pot was developed: an attractive visualization which provides the participant with easy insight into the accumulated pension. Together with SPW, Helder Overzicht & Inzicht was launched. This gives participants in the fund a clear overview and easy insight into their income and expenses on their retirement.
Besides the three ‘traditional’ variables of risk, return and costs, a fourth variable is very important for the more than 700 APG investors: sustainability. An increasing percentage of the invested assets are invested sustainably. Pension funds and APG believe in achieving a good pension in a sustainable world. With investment returns expected to decline in the near future, APG is looking for alternative investments and working towards ‘enterprising investment’.
APG manages around 470 billion euros in pension assets and ensures that over 4.5 million people can be confident that their accrued pension rights are properly invested, administered and paid out.
Gerard van Olphen, Chairman of the APG Group's Executive Board: “In the past year, we have expressly aimed at increasing our pension value for our pension funds and their participants. In concrete terms, we want to offer participants the most income years for later. By achieving good and sustainable returns on the one hand and reducing our implementation costs on the other, we have taken good steps in that direction in 2017. We therefore look back with satisfaction at 2017 and will do everything we can to continue this line now and in the future.”
View APG's full Annual Report 2017 here
This document can only be used for reference; it is a translation into English of an original Dutch document. In the event of any discrepancy between the two texts, the Dutch text shall prevail.