The €1.1bn sector scheme for the Dutch security industry, Particuliere Beveiliging, has replaced fiduciary manager PGGM with provider BMO.

Hans Kestens, the pension fund’s chairman said that an important criterion for the change was the fact that BMO allowed the fund more leeway for selecting external asset managers.

“At PGGM, the connection between the disciplines of fiduciary advice and the implementation of asset management was much stronger,” he said.

“Although we could deviate from this, as a client one ties itself to their philosophy,” he explained, adding that his scheme was not dissatisfied with PGGM.

The assets of Particuliere Beveiliging have quickly increased, from €482m in 2009 to €1.1bn at present.

“Given our larger scale and our increased professionalism, we wanted to have the option of more than a one-stop shop,” said Kestens.

According to the chairman, costs have not played a crucial role in the scheme’s decision to leave PGGM for BMO.

“Costs will strongly depend on the chosen managers, the preferred investment style and the services we would buy.”

Kestens made clear that the pension fund was not considering a change of investment policy.

He said that the scheme illiquid investments, including its infrastructure holdings, would remain with PGGM “as long as it was necessary and useful”.

He added that Syntrus Achmea Real Estate & Finance would remain the manager of its 5% investments in mortgages and property.

The scheme said the switch-over to BMO was the result of an evaluation of fiduciary management in 2015 as well as a tender.