NETHERLANDS - NIB Capital, the investment manager jointly owned by Dutch pension scheme giants ABP and PGGM, has acquired a 51% stake in FundPartners in a bid to strengthen its pension and insurance solutions for institutional and corporate clients.
The deal means that NIB Capital broadens its offerings, while FundPartners gains from NIB’s market exposure.
According to NIB Capital’s Antoine Dijkstra, member of the board of managing directors: “This co-operation will strengthen our position in the field of offering integrated solutions to corporate pension plans and industry pension plans.”
The move comes at a time when many Dutch schemes are being forced to review their pension arrangements in order to boost funding levels and meet the 120% buffer laid down by the Dutch pensions and insurance supervisory body, the PVK.
The IMF also backed calls for strengthening second pillar funding and warned that the financial losses on pension fund assets will have macroeconomic consequences for the Dutch economy. The problems stem largely from high equity allocations.
Both ABP and PGGM, which oversee the pensions of the civil service and social- and healthcare sectors respectively, recently submitted their recovery plans to the PVK. ABP’s plan aims to give rise to an old age pension and surviving dependant's pension premium of 22.4%, from 15.2%. And PGGM said it would introduce an average-pay scheme and the full indexation of pensions from 2004.
Jeroen Tielman, chief executive officer of FundPartners: “This strategic partnership will allow [us] to further strengthen the service offered to the Dutch pension fund market. In addition, today’s changing pension environment provides FundPartners with more scalable business opportunities.”
NIB Capital also has strategic alliances with Integrated Finance in New York, Harcourt Investment Consulting in Zürich and NIBC Petercam in Brussels.
The firm recently posted a first half operating profit rise of 31% to e74m. Total income also increased by 14%, particularly as a result of sharply higher commission income.
The Next Generation Pensions Committee is on a mission to promote and encourage younger voices in the industry. Kim Kaveh looks at its key objectives
This week's top stories included an analysis finding the cost of equalising guaranteed minimum pensions in schemes could hit FTSE 100 profits by up to £15bn.
Employers whose dividend to deficit recovery contribution (DRCs) ratios fall outside the "normal range" should expect to see higher regulatory scrutiny, although no fixed ratio will be set.
Investment consultants and fiduciary managers should expect a final decision on the investigation into the market to be published by the end of the year, the competition watchdog says.