NETHERLANDS – PGGM says it is lobbying against proposed curbs to pension funds’ non-core activities, saying it has three main concerns – on exit strategy, timing and the role of the regulator.

The concerns follow the government backed Staatsen report, which state social security minister Mark Rutte has backed.

A spokesman for the 53 billion-euro Dutch healthcare fund PGGM said the fund is lobbying and meeting with politicians.

“We are glad that Mr Rutte will take more time to make some further decisions about the opportunities for pension funds to invest in venture capital, private equity and real estate,” said PGGM spokesman Kees Verhagen.

He welcomed Rutte’s decision to consult. “I think it’s also a good point that he will ask pension funds about this matter.”

“There are still some issues about which we are concerned at the moment,” he added.

Under the proposals, funds would need an exit strategy for their real estate and private equity investments. “I think this is not to the benefit of pension funds. The party you are dealing with knows this and this can affect the price.”

The fund is also concerned about the timing of the plans, and whether the proposals would be retrospectively applied. Verhagen cited PGGM’s 50:50 venture capital venture with ABP, NIB Capital Partners.

Another issue for the fund is the position of the regulator, the Pensioen- & Verzekeringskamer. Under the new proposals the PVK would have the power to act pre-emptively – which is contrary to the current ‘prudent person’ principle. “We think this is a problem in relation to European law and directives,” Verhagen said.

The Dutch Association of Industry-wide Pension Funds, the Vereniging van Bedrijfstakpensioenfondsen, or VB, said it now plans to respond formally to the proposals on Wednesday.

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