NETHERLANDS - The €3.8bn pension fund of the Dutch employment and benefits agency UWV says it intends to conclude a risk and asset management contract with Allianz Global Investors (AGI). The deal falls short of a full fiduciary mandate.
According to IPE's March 2010 survey of institutional managers in the Netherlands, AGI has managed some €8.5bn for Dutch clients, although it has no fiduciary management business in the Netherlands.
UWV pension fund has signed a letter of intent to appoint AGI as its sole co-ordinating asset manager and risk adviser to further professionalise its activities, it announced.
According to Piet Molenaar, director of the UWV scheme, the new co-ordinating manager will monitor the strategic balance sheet risk in its role of strategic adviser, advise the investment committee on the strategic risk, carry out overlay strategies and select and monitor external asset managers.
Up to now, the pension fund has selected its seven external asset managers itself, with guidance from an investment consultant, he pointed out.
"Placing the management of these activities with one co-ordinating party, will secure a better strategic risk management, co-ordination of the asset management as well as transparency of the process," he explained.
The director further indicated that the scheme's own administrative bureau will also be tasked with finance and control, and that its responsibilities on strategy and risk management will be extended.
During the coming months, UWV and AGI will hammer out further details for a definite cooperation.
UWV's selection process has been guided by consultant Avida International. Stichting Pensioenfonds UWV has 23,700 active employees, 18,200 deferred members and 8,400 pensioners. Its cover ratio was 109.1% at the end of 2009.