Only around one-third of asset managers considering the launch of a cross-border pension fund would opt for a Dutch Premium Pension Institution (PPI), according to research conducted by Cerulli Associates.

According to the company’s European Defined Contribution Markets Report, more than half of respondents it surveyed said there were not interested in launching a cross-border fund, while a further 28.6% said they would consider such a move, but employing a vehicle other than the PPI.

The research noted that uncertainty surrounding the Dutch legislative framework may be deterring some respondents from considering the PPI, while Cerulli also noted that a US manager responding said the vehicle was “not worth working with”, as the fees associated were too low.

The respondent also said the Belgian Organisation for the Financing of Pensions (OFP) had been marketed better than the Dutch alternative, potentially explaining why only 14.3% of respondents were considering pooling through the PPI.

“Europe’s patchwork of national pension laws remains the main stumbling block for cross-border pension pooling,” Cerulli said.

Noting that cross-border pooling could remain “wishful thinking” unless the European Union harmonises tax systems, he added: “One manager abandoned hope that divergent regimes would be ‘melted together’ by pressure from the euro-zone’s debt crisis.”

France’s UMR Corem previously considered the launch of an OFP in an attempt to avoid Solvency II legislation.

A source close to the situation later told IPE that French regulator Autorité de Contrôle des Assurances et des Mutuelles sent the fund a letter “advising” them against the move.