PFZW

Pensioenfonds Zorg en Welzijn (PFZW) is the pension fund for the Dutch healthcare and social work sector, managing approximately $310 billion for more than 2.9 million current and former healthcare workers. PFZW is one of the largest pension funds in the Netherlands and among the largest in Europe.

Investment Strategy

PFZW’s board of trustees sets the fund’s investment policy, strategic asset allocation, risk framework, and responsible investment requirements. The implementation of investment strategy is delegated to PGGM, which serves as PFZW’s fiduciary asset manager.

The strategic asset allocation targets a diversified portfolio across public equities, fixed income, private equity, real estate, infrastructure, and credit. Approximately 30% of the portfolio is allocated to alternative and real assets, reflecting the fund’s long investment horizon and its pursuit of illiquidity premiums and diversification benefits.

PFZW’s investment policy is shaped by its liability profile, which consists of long-duration pension obligations to a large and growing beneficiary base of healthcare workers. The fund targets nominal and real return objectives sufficient to maintain funding ratios and index pension benefits to inflation.

The fund has been a leader in responsible investment among Dutch pension funds. PFZW has established specific sustainability targets, including CO2 reduction goals for its investment portfolio, and has adopted exclusion policies for companies involved in controversial weapons, tobacco, and thermal coal. The fund publishes annual responsible investment reports.

Private Markets Approach

PFZW’s private markets investments are implemented by PGGM across private equity, real estate, infrastructure, and private credit. The private equity program includes fund commitments to global GPs, co-investments, and select direct transactions. PFZW has maintained a stable allocation to private equity, committing to established buyout, growth, and mid-market managers.

Real estate investments span direct property ownership and fund commitments across Dutch, European, and international markets. The portfolio includes office, residential, logistics, and specialty property types. PFZW’s real estate allocation has historically been one of the largest among European pension funds.

Infrastructure investments target core and core-plus assets in energy, transportation, utilities, and renewable energy. The allocation provides inflation-linked income and portfolio stability. PFZW has been an active investor in European infrastructure and has expanded globally through both direct and fund-based investments.

Private credit investments include direct lending, mezzanine, and structured credit strategies, providing diversification and income generation within the fixed income portion of the portfolio.

The responsible investment framework applies across all private markets investments, with ESG due diligence required for new commitments and ongoing monitoring of existing holdings against sustainability criteria.