APG, the investment manager of Europe’s largest pension fund ABP, is discontinuing its active equities strategy due to persistent underperformance. The move will result in 40 job losses across the Netherlands, the US, and Asia. APG oversaw €33 billion in active equity strategies, which underperformed benchmarks by an average of 70 basis points annually over the past five years.
The decision aligns with a broader industry shift toward passive, index-tracking investments, driven by higher fees and the growing dominance of tech stocks in major indexes. APG cited unfavorable reactions to tariffs and market volatility concentrated in the technology sector. The strategy shift was first announced in December, and follows the March departure of Ronald Wuijster, head of APG’s asset management unit, replaced by Alineke van den Berge-Blindenbach.
While active equities are being phased out, APG emphasizes that active management remains core to its approach in fixed income, real estate, infrastructure, and private equity. The firm is also winding down external client agreements to focus solely on ABP, prompting other Dutch pension funds like Bpf Bouw and SPW to seek new managers. Bpf Bouw has reportedly selected BlackRock as its preferred provider for its €70 billion portfolio.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing