NETHERLANDS - PGGM, the newly separated asset manager of the large Dutch pension fund PFZW, has appointed Kas Bank as custodian for part of its securities portfolio.

Kas is already the bank behind PGGM's new online savings account product for people in the healthcare sector, the first product which PGGM actively offers to its members. (See earlier story PGGM begins push for fund's clients)

Kas Bank said in a news release: "A part of the European securities portfolio that PGGM manages on behalf of the Dutch Pensioenfonds Zorg en Welzijn is to be placed under custody with Kas Bank."

The mandate is worth "several billions of euros", according to a spokeswoman. PGGM declined to reveal the incumbent custodian.

The two said the deal "continued the existing cooperation between PGGM and Kas Bank".

The appointment is good news for the securities bank, which said in August last year it had seen its income from custody and investment management services decrease by 14% to €14m in the first six months of 2008, mainly because lower market prices forced a drop in value of assets under custody. (See earlier story Kas Bank's custody income hit by markets)

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