UK / NETHERLANDS - The TNO Pension Fund Foundation has appointed Blackrock to run a €2bn fiduciary mandate.
Blackrock will now have the primary function of acting as lead overlay risk manager.
Dutch-based TNO Pension Fund, which covers researchers and scientists and manages over €2bn in assets, will continue to manage and select managers for their equity and alternative investment portfolios.
In addition, Blackrock will support the internal pension staff to assist in the risk management and total reporting process of the external managers’ portfolio.
Andre van den Heuvel, Blackrock’s head of institutional sales for the Benelux region, said the mandate win was a customised one, with a clear division of roles between Blackrock and the TNO Pension Fund .
He said: “As far as we know such a structure is currently unique in the Netherlands. Our capabilities in relation to the TNO Pension Fund’s required objectives complement each other very well.”
van den Heuvel added: “This is a key step forward for us as we continue to expand our fiduciary client base in the Netherlands.”
He also noted that fiduciary management was a growing trend in the market.
At the end of June 2007, the funding ratio for the TNO Pension Fund was 147%. Besides investing in equities and bonds, the portfolio also invests hedge funds and private equity.
For 2005, 2006 and the first half of 2007 respectively, investment returns amounted to 17.7%, 11.3% and 4%.
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