Allianz Netherlands has selected Cardano to manage all defined contribution (DC) pension arrangements for its insurance franchise and its premium pension institution (PPI). The combined mandate totals some €2bn.

The new mandate is the result of Allianz’s wish to have all its pension assets managed by one firm. The insurer also believes Cardano, which acquired the sustainable investment management firm Actiam in 2021, is better able to deliver on sustainability than its current asset managers.

Most of the money in Allianz’s insured DC arrangements is now managed by Northern Trust while BlackRock is in charge of the management of the firm’s €577m PPI, a DC second-pillar vehicle.

Not an ideal situation

Referring to the fragmented asset management, product manager Anton de Lugt said this was “not an ideal situation”, adding: “We prefer to have all the assets of our clients to be in the hands of one asset manager.”

Since the asset management contracts with both Northern Trust and BlackRock expire this year, this was “the ideal moment to choose for one asset manager”, said De Lugt.

Both firms participated in the tender for the new contract, but Allianz opted for Cardano.

“We had the feeling they were best placed to help us realise our ambitions in the field of sustainability. We want to commit ourselves to the goals of global Allianz firm; Allianz is a co-founder of the Net Zero Insurance Alliance.”

All investments will move to Cardano by the summer. The money will be invested in ‘light green’ funds, classified as Article 8 under the SFDR.

Maureen Schlejen, chief commercial officer at Cardano, said she is looking forward to “contribute demonstrably to the sustainable development goals together with Allianz”.

This article appeared originally in Pensioen Pro, IPE’s Dutch sister publication. It has been translated and adapted for IPE by Tjibbe Hoekstra.