ABP reports private equity outstripping real estate

The Dutch pension's private equity portfolio returned 13.7% for H1 2010, compared to 1.7 percent for RE

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 compared to just 1.7 percent for real estate.

The gain in private equity is a steep increase from the 4.8 percent 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.

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. Real estate makes up 7.9 percent.

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.