NETHERLANDS - SEI has announced it has won the mandate to act as fiduciary manager for the €1.5bn Bpf Meubel pension fund for the Dutch furniture industry.
Peter In De Rijp, head of client service, Netherlands SEI, said the new mandate represented a large growth in SEI's assets under management in the region. He added the company had an interesting pipeline ahead, with a couple of company pension funds and a few more schemes in the final presentation stage.
In total, SEI has over €2bn of assets under management in the Netherlands, spread across 10 Dutch pension funds. Bfp Muebel said it chose SEI based on both its global track record in the fiduciary management space and its knowledge of the Dutch pension market.
"The Dutch market is moving. We're feeling quite confident given the win for the first industry fund in the Netherlands," said In De Rijp.
The Netherlands has been proven a popular territory for fiduciary management.
In De Rijp said it was due to a number of factors: "Firstly, there were significant regulatory changes a few years ago. The management of pension funds became more complex.
"Also, rules governing board members were tightened and require more expertise at the trustee level. Fiduciary management frees up the board of trustees to concentrate on strategic rather than tactical issues."
He said the previous discount rate applied to liabilities of 4% was changed to the market rate, causing significant volatility in scheme funding ratios and increasing investment in alternative assets over the past few years needed more expertise to manage.
In De Rijp added SEI was seeing more and more interest for fiduciary management products across Europe.
SEI said it would also provide risk management and derivatives implementation to the fund. The remaining €200m of the Bpf Meubel scheme will remain invested in direct real estate and domestic Dutch mortgages.
Bpf Meubel said it opted for fiduciary management for a number of reasons, including higher quality investment management, risk management and transparency between the fund and its investment managers.
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