Europe’s second largest pension system is preparing for a historic shift away from the current defined ambition arrangements in favour of one with DC accrual but largely in a collective asset pool. Despite political murmurings among members of the current coalition government, there have been no serious attempts to row back on the reforms, which will kick in from 2025 onwards. The main change for pension funds will be moving away from a system that manages funding ratio, with risk capacity determined accordingly, to one that is arguably better suited to the long-term risk profile of the participants. What’s not to be underestimated is the IT challenge in migrating millions of accounts to the new system.
The arguments heat up over what to do with excess funds in Dutch pension schemes
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Pension funds in the Netherlands await for government to take first step by providing investment opportunities
Jacques Van Dijken will serve until at least November, when PensionsEurope’s next general assembly is held
The short-term shock is extra relevant for Dutch funds, as they want to make the transition to a new defined contribution arrangement with comfortable funding ratios
Prior to the deal, the fund had hedged its equity, dollar and interest rate risk ‘as much as possible’, ahead of ‘Liberation Day’
€69bn Bpf Bouw, which is on the lookout for a new fiduciary manager, could be a great fit for MN, according to Martijn Scholten
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As at 30.6.24, *31.12.23, **30.06.23
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IPE BEST PENSION FUND IN NETHERLANDS AWARD WINNERS
When King Willem-Alexander read out his speech at the opening of the Dutch parliament, the topic of pensions was missing.
Pension funds in the Netherlands await for government to take first step by providing investment opportunities
Jacques Van Dijken will serve until at least November, when PensionsEurope’s next general assembly is held
The short-term shock is extra relevant for Dutch funds, as they want to make the transition to a new defined contribution arrangement with comfortable funding ratios
Prior to the deal, the fund had hedged its equity, dollar and interest rate risk ‘as much as possible’, ahead of ‘Liberation Day’
€69bn Bpf Bouw, which is on the lookout for a new fiduciary manager, could be a great fit for MN, according to Martijn Scholten
The Dutch asset manager’s actively managed concentrated portfolios especially underperformed, posting returns less than half of those of their benchmarks
US dollar’s downside risks have greatly increased under Trump’s second presidency. For Dutch schemes, upping protection is extra urgent during a time of transition to DC-based pension arrangements
Plus: Council of State’s proposal for mandatory ballots on pension fund level
While some funds have sold part of their equity exposure, more are likely to use options to reduce the downside risks to their listed equity investments
DNB introduces AI tool ChatDNB