THE NETHERLANDS - Six mid-sized Dutch corporate funds have formed an alliance which will see them use a communal system for their asset management, custodian, administration and IT requirements. The funds represent a combined membership of 60,000 and funds of NLG10bn.
The funds - Stichting Pensioenfonds TNO; Stichting Bedrijfspensioenfonds voor Het Baggerbedrijf; Stichting Pensioenfunds HBG; Stichting Pensioenfunds Volker Stevin; Stichting Pensioenfunds Productschappen, and Pensioenfunds Peek& Cloppenburg - are all based near The Hague and will be moving into TNO-owned offices in the area from the middle of December.
All of the pension funds are expected to have moved by the end of February.
The six funds are being advised by Watson Wyatt in their choice of a common custodian. They have already held a beauty parade of six custodians and expect to make a decision within the next few months.
The funds currently outsource a large percentage of their asset management and are looking to bring a lot more in-house. Henk Bogerd, controller of the TNO fund, said that the funds would focus on the bonds within the asset mix first to decide where they should be managed.
Bogerd said that TNO approached several funds as long ago as three years in an effort to form an alliance. He said that it would mean that all the funds could now rely on having skilled staff in-house.
Many within the Netherlands pension industry believe that the partnership will be the first of many as pension funds’ resources are placed under increasing pressure due to demands for greater transparency and higher reporting standards
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