NETHERLANDS - The new Dutch industry-wide defined contribution (DC) pension funds for the wholesale flower and plant sector has appointed pensions provider Cordares as its fiduciary manager.
Cordares, which recently merged with APG, has developed a fiduciary solution together with the scheme, whereby it invests part of the assets in a growth portfolio, and the other in an inflation-linked income portfolio.
Frank Verschuren, employers' representative of the fund, told IPE today the solution dates back to the fund's launch in January last year, when the Wholesale Traders Flowers and Plants employers pleaded for a DC solution, while the trade union wanted defined benefit qualities for the fund.
"We have tried to create a scheme where, above the bonnet, things are conditional and without an obligation to generate 'return', while underneath the bonnet we have tried to eliminate the risks as much as possible," said Verschuren.
The invested assets, currently €3m, and the inflation which has occurred in the meantime are guaranteed by the inflation-linked income portfolio, while a portion of return on top of that should be generated within the growth portfolio.
Cordares is working together with Dutch consultant Cardano in the investment process, whereby Cardano is providing investments in swaps.
Until last year, 15,000 employees in this sector were not able to pay into a pension fund collectively, but had to set up personal arrangements, making this one of the only sectors in the Netherlands without a collective agreement.
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