AMSTERDAM — The new asset management combination of APG Groep NV and Cordares Holding NV will be luring investors with enticements such as solid track records, access to scarce managers and a range of innovative investment strategies.
But the real hook might be in the pricing.
“Better quality, lower costs — that's our proposition to other pension funds,” Roderick Munsters, chief investment officer at APG, said in an interview.
APG — investment manager of the €220 billion ($350 billion) Stichting Pensioenfonds ABP, Heerlen — has entered the Dutch fiduciary management sector with a splash by merging with Cordares barely six weeks after gaining independence from the giant pension fund.
The newly combined firm will be up against a crowded field of competitors, but Mr. Munsters — in his first interview since the deal was announced earlier this month — is confident that APG has the right recipe to succeed.
Having led the modernization of ABP's investment strategy into alternatives and expanded asset management's reach by opening offices in New York and Hong Kong, Mr. Munsters' next challenge is closer to home.
APG Groep is going after other Dutch pension funds, offering a one-stop shop that combines investment consulting, asset management and administration services under the fiduciary management umbrella.
“We're not here to make as much money as possible for our shareholder,” Mr. Munsters added. “We have an attractive product range at a very attractive price. We can thus help to keep the (Dutch) collective pension scheme system attractive.”
The merger of APG and Cordares will create a new asset management division with a total of €246 billion in assets under management. About €240 billion of that belongs to two main clients — ABP and the Stichting Bedrijfstakpensioenfonds voor de Bouwnijverheid, Amsterdam, which has about €20 billion in total assets.
Operating under the APG name, the company is poised to seriously challenge the status quo.
The average annualized return for ABP from 1993 to 2006 was 8.2%. Inflation-adjusted annualized returns during the same period were 6.2%, according to annual report data.