Ronald Wuijster, CEO of APG Asset Management, has illuminated the increasing importance of pension funds in supporting European security through investment as Europe struggles with increasing geopolitical uncertainty and fresh urgency over defense readiness. Wuijster’s observations coincide with major reforms in the Dutch pension system that let funds like APG rethink their capital allocation policies and consider industries hitherto thought to be ethically or financially sensitive—like defense.
Dutch Pension Reform
From a conventional defined benefit pension system, the Netherlands is moving toward a more flexible arrangement that gives individual pension savers more direct ownership over their retirement assets. Planned for completion by 2028, this change eliminates set guarantees on pension income and more closely links retirement results with Market performance
Wuijster said that this reform allows pension funds to pursue investments with higher risk profiles, including private equity, infrastructure, and industries with potential for long-term returns, like defense.
“There used to be a penalty for credit risk, which is now diminishing, and this change allows for increased budget flexibility to take on more risk in private investments,” Wuijster remarked in a recent interview. Over the following five years, he pointed out APG might raise its allocation to private markets by as much as five percentage points.
APG Shifts Strategy
APG’s attitude has changed most strikingly because it is now more receptive to military sector investment. Traditionally, many European pension funds—especially in the Netherlands—have avoided defense because of ethical questions and public criticism. But the continuous conflict in Ukraine and mounting instability in many other countries have changed the debate on national and continental military obligations.
Currently, APG has invested €2 billion in defense-related businesses. Wuijster acknowledged that the company is considering growing its footprint, with an eye toward European defense manufacturers and infrastructure suppliers.
“We see more attractive valuations in Europe,” he said, noting that APG seeks to make its investments have a “real-world impact,” particularly as the EU strives for more defense autonomy.
Defense Investment Debate
Dutch Defense Minister Kajsa Ollongren was vocal in advocating that pension funds support the defense sector more actively. She maintained that financial institutions had a social responsibility and should cease considering defense as off-limits. “Pension funds are part of the problem,” she said earlier this year, citing the unwillingness of funds to raise exposure to defense-related stocks even after Russia invaded Ukraine.
Pension funds—including APG—have responded with a cautious but progressively liberal attitude. Wuijster underlined the importance of openness, moral responsibility, and a structure guaranteeing investments match society’s values.
Emphasizing that APG will continue avoiding contentious weaponry such as nuclear arms, cluster bombs, and landmines, he stated, “We are going to look even more selectively at the companies in which we invest.” Investments have to satisfy high criteria and conform to sensible investing policies.
This was mirrored by the Dutch Pension Federation, which said that while funds are accessible for defense investment, long-term government policy certainty and steady demand for defense products are necessary to support significant investments.
Global Investment Partnerships
Apart from the moral and legal issues, APG also projects itself as a worldwide cooperative investor. To co-invest in infrastructure and strategic assets in developed countries, it has partnered with organizations such as Japan’s Government Pension Investment Fund (GPIF). These alliances let APG pool resources and knowledge for higher, more sustainable profits while aligning with geopolitical and social agendas.
“Joining forces will help to address the expanding need for coordinated actions from like-minded, long-term investors to deliver long-term value to our beneficiaries and the broader society,” Wuijster said.
Final thoughts
Ronald Wuijster’s comments highlight a fundamental change in the way pension funds see their investment obligations in a more complicated and fractured world. APG is using the freedom to make significant investments, especially in defense, as the Dutch pension system modernizes while maintaining a strong ethical compass.
The company’s cautious but proactive approach captures a larger change among institutional investors, who today have to weigh public responsibility, fiduciary obligation, and geopolitical awareness. According to Wuijster, APG’s greater openness to defense investment is about supporting European security, stability, and sovereignty in an uncertain age rather than only about capital returns.
