ABP reports 67% surge in PE performance

The Dutch pension's private equity portfolio returned 13.7% for H1 2010, up from 4.8% in the same period last year.

Dutch pension ABP reported strong growth in its private equity portfolio for the first half of 2010, with the asset class returning 13.7 percent. The figure is a steep increase from the 4.8 percent private equity returned for the pension in the first half of 2009.


ABP: infra
private equity

Infrastructure provided the highest half-yearly results among ABP's alternative investments, scoring a 15.2 percent return. The figure is a turnaround from the negative 4.8 percent infrastructure returned in the same period last year. Hedge funds returned 8.9 percent in the first half of 2010, while real estate booked a 1.7 percent return, according to the pension’s half-year report. 

Infrastructure is a relatively new asset class within the ABP portfolio that is growing from a smaller base. The pension created its infrastructure allocation in 2007 and currently has .3 percent of its €218 billion investment portfolio invested in the asset class.

Private equity, by contrast, commands a 5.4 percent share of its portfolio. The 13.7 percent return on private equity equated to a gain of about €1.3 billion for the pension.

Overall, ABP posted a 4.6 percent return on investment in the first six months of the year, equivalent to a gain of about €9.6 billion.