UK/NETHERLANDS - The Dutch-based Blue Sky Group, managers of the pension assets for KLM Royal Dutch Airlines, has appointed Pimco to a e218m global real return mandate.
The mandate will be managed by Pimco's inflation linked bond team, and benchmarked against a customised Euro-hedged Barclays Global inflation linked bond index.
The mandate brings PIMCO's total funds under management in the Netherlands to $3.3 bn.
Marc van Heel, senior vice president and director of business development Benelux, said, With inflation-linked bonds clients receive a hedge against future inflation. This is especially important in The Netherlands, where under normal circumstances pension funds will try to compensate pensioners for inflation.
The Blue Sky Group mandate represents PIMCO's commitment to understanding local markets so that we can gear our global expertise specifically to ensure the best possible return
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