Pensioenfonds Stichting ABP, Heerlen, Netherlands, will increase its equity allocation by 15 billion euros ($14.1 billion) to 52% of total assets, from 42%, by the end of 2002, said Michel Meijs, spokesman. The 150 billion euro plans board of governors last month agreed to the change based on a recent asset-liability study.
Funding will come from cutting the plans fixed-income exposure to 40% of total assets by the end of next year, from 50%. Private equity will be increased to 4% of total plan assets, from 2%. Real estate will remain unchanged at 8% of total assets.
The new allocations will be managed internally, except private equity, which will be run by NIB Capital, in which ABP has a stake. NIB likely will continue to manage corporate bonds and mortgage-linked securities for the fund, said Mr. Meijs.