NETHERLANDS - The €23bn metal scheme PME will further appeal against the pensions supervisor De Nederlandsche Bank's (DNB) order to de-risk its investment portfolio.

PME said it was still unclear whether the DNB was even authorised to issue such an instruction, or whether PME had broken any law.

The pension scheme also questioned whether the DNB's order was in the interest of its 700,000 participants.

In early August, the Rotterdam court ruled that the supervisor had justly interfered to protect the pensions of PME's participants.

But the pension fund for the Metalektro claimed the court had failed to address a number of its objections, such as whether there DNB were authorised to issue an instruction at the level of individual asset classes, rather than for its entire portfolio.

Moreover, the verdict, according to PME, contained several factual inaccuracies respecting management costs and portfolio losses, among other things.

At the end of 2009, the DNB ordered PME to submit a plan outlining how it would better control its investment and outsourcing risks after the regulator identified 14 legal violations.

During an investigation of PME and Mn Services - PME's asset manager since 2007 - the DNB said it failed to find an adequate management framework, and that PME's balance had been in a "worrying state".

It concluded that PME had failed to adhere to the prudent person rule for an investment policy based on security, quality, liquidity and returns, as described in the Pension Act.