Province of Gelderland, Arnhem, Netherlands, hired ING Investment Management to run about €2 billion ($2.5 billion) in fixed income, according to Kiki Jamar, provincial spokeswoman.
Funding came from liquidating a 49% equity stake in Nuon Energy, Amsterdam. The liquidation will be implemented in three stages, with the initial €2 billion to be managed by ING, Ms. Jamar said.
Officials have not determined the exact fixed-income investment strategy ING will run, but it will be considered very conservative, Ms. Jamar said. “It will be invested in triple-A countries,” she added.
The portfolio could reach $4 billion over a five-year period, according to Mark Beers, spokesman for ING IM.