APG sees pension funds shying away from China

APG, one of the largest asset managers globally, has stated that its pension fund clients are increasingly cautious about investing in China due to rising geopolitical risks. 

APG, one of the largest asset managers globally, has stated that its pension fund clients are increasingly cautious about investing in China due to rising geopolitical risks. 

The Netherlands-based group manages around €532 billion in assets for Dutch pension plans.  

While APG has significant investments in China and has had an office in Hong Kong for 15 years, concerns about the country are growing among its pension fund clients. In the past, investors were eager to invest in China, but now they are more aware of the risks and the geopolitical uncertainties associated with the region.  

Other institutional investors, including Caisse de dépôt et placement du Québec and GIC, have also reduced their exposure to China due to concerns over tensions with the US. APG is currently in discussions with its clients about their preferred regions and asset classes for investment, including China.  

Additionally, European markets have become more attractive to investors as the region successfully navigated an energy crisis. APG notes that the trends of the past five years, including moving money out of Europe and exploring new asset classes, are changing, and expected returns in traditional asset classes and regions have improved. Ultimately, APG’s pension clients have their own risk policies, and the decision to remain invested in a region depends on their beliefs and risk assessments. 

Read more: https://www.ft.com/content/2bbb09be-9d72-4169-b0f8-cb7cc17938a1