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-mark
Frequently Asked Questions
How does PFZW's investment program work?
PFZW sets the investment policy, strategic asset allocation, and responsible investment framework. Implementation is delegated to PGGM, its fiduciary asset manager. PFZW's board determines target allocations to public equities, fixed income, private equity, real estate, infrastructure, and credit. PGGM selects managers, executes transactions, and manages the day-to-day portfolio.
What is PFZW's alternatives allocation?
PFZW allocates approximately 30% of its portfolio to alternative and real assets, including private equity, real estate, infrastructure, and private credit. The fund has maintained a significant alternatives allocation for decades, reflecting its long investment horizon and belief that private markets provide incremental returns and portfolio diversification over time.
How does PFZW approach responsible investment?
PFZW has been one of the most proactive pension funds globally on responsible investment. The fund has set specific CO2 reduction targets for its investment portfolio, has exclusion policies for controversial weapons and coal, and requires ESG integration across all asset classes. PFZW works closely with PGGM to implement responsible investment standards in private markets, including ESG due diligence on new commitments and active engagement with portfolio companies.
