There has been a lot of recent political and media pressure for pension funds to invest in Defence and defence companies. This is needed to build up our defences quickly, now that wars in Europe and the Middle East, among others, have made the world much more unfriendly.
On 7 March, Admiral Rob Bauer, the chairman of NATO's Military Committee, made an impassioned speech about this at the KIVI building to a gathering of 70 pension fund directors, united in the Institute for Pension Education (IVP).
He indicated that we must realise that global security has changed dramatically. Together, we must ensure that the defence of our country and the NATO alliance is put in order as soon as possible. Not just the armed forces, but the whole of society. Including the pension funds.
In doing so, a lot of money is needed to enable industry to produce much more quickly and to realise large projects, such as naval ships and aircraft for the air force. As an example, he mentioned that pension funds in Denmark, in consultation with their defence ministry, have invested 5 billion to equip the armed forces with frigates for the next 25 years. He eagerly awaits the first news of such an initiative in the Netherlands.
It also has to be done quickly, because there are now more major conflicts than ever in the world: Ukraine, Gaza, Red Sea, etc. and this situation seems to be getting worse. Admiral Bauer said:"We as NATO do not want war, Nobody wants it. But we have to be prepared for it".
The pension fund directors present almost all responded very positively to this call. Many participating directors want to think along about investment opportunities, such as in Denmark. Even after the seminar, requests came in from funds and asset managers who would like to contribute. Within the legal possibilities, of course.
The meeting was organised by pension fund umbrella organisation IVP in cooperation with KIVI DV.
