AMSTERDAM — Resource-strapped Dutch pension funds are increasingly outsourcing management to European units of U.S. firms as pension executives struggle to cope with tighter regulations and more complex investment markets.
And it is not just small and midsize plans that are hiring "fiduciary managers," outsourcing much of their risk budgeting and manager selection tasks.
The €7.5 billion ($9.6 billion) Pensioenfonds voor het Beroepsvervoer, Schiphol, stunned the Dutch market earlier this month by outsourcing the management of its plan to Goldman Sachs Asset Management, London. The bulk of the assets had been managed by F&C PLC, London, and its affiliate company, Achmea Vastgoed BV, Amsterdam.
"Vervoer is one of the biggest mandates we have seen in years. So there may be an appetite among large pension plans for fiduciary management," said Hans Rademaker director, fiduciary management, at Kempen Capital Management NV, Amsterdam.
Before joining Kempen late last year, Mr. Redeemer was managing director at Mn Services, Rijswijk, a domestic fiduciary manager running €30 billion in assets for Dutch pension plans.
In the Dutch market, a fiduciary manager will typically advise plans on asset allocation and risk budgeting, as well as take charge of finding, appointing and firing money managers.
Under Dutch law, pension plan trustee boards remain ultimately responsible for risk budgeting and setting the asset allocation, and they cannot entirely outsource these tasks, said Ruud Hendricks, managing director at GSAM.