Dutch insurer appoints Kempen to €7.3bn fiduciary mandate
The €7.3bn Dutch Pensioenfonds UWV is to outsource its fiduciary management to Kempen Capital Management.
The pension fund – linked to UWV, a provider of employee insurance – and Kempen have signed a letter of intent based on a start date of 1 October.
According to Kempen, it had been chosen by the UWV scheme following a selection process with strategic investment advice and “counterbalancing underlying managers” – both for liquid and illiquid asset classes – as important criteria.
Kempen’s approach to expected changes in the Netherlands’ pensions system also played a role.
The pension fund declined to elaborate on the letter of intent at this stage, arguing that it wanted to complete the tender first.
According to Pensioenfonds UWV’s annual report for 2015, Allianz Global Investors had run the portfolio as fiduciary manager since 2011, when it began a five-year contract that could be cancelled on an annual basis.
In its annual report, the scheme said that it wanted to focus on reducing complexity and costs.
In 2015, it started directly investing in private equity and infrastructure, with a strategic allocation of 5%. It also said it wanted to increase its stake in more risk-bearing investments by 10 percentage points in total, through raising its stake in equity and property.
The shift would largely come at the expense of its allocation to euro-denominated government bonds, it said.
Meanwhile, Paul Gerla, chief executive at Kempen, reiterated that his company wanted to further expand in the pensions market.
The Pensioenfonds UWV is to become its third fiduciary client with assets exceeding €5bn. It has previously received large mandates from the sector scheme for food stuffs (Levensmiddelen) and F van Lanschot Bankers.
This year, the industry-wide scheme Wheels & Tyres (Banden en Wielen) and the general pension fund (APF) of insurer ASR also appointed Kempen as their fiduciary manager, adding €8.3bn to its assets in total.
At the moment, Kempen has €26bn of assets under fiduciary management for 18 Dutch institutional clients, as well as €4bn for eight clients in the UK.
Its British clients stayed on when Kempen took over the overseas fiduciary business of Dutch asset manager MN in 2015.