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
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers