NETHERLANDS - APG Group, the investment manager for Dutch pension fund ABP, has revealed its ambition to expand into the international market, following its merger with Cordares Holdings.
In a statement, APG Group said it was already active, together with Cordares, on the international market.
It added: "The ambition is to expand these activities. This is based on the conviction that the expansion of collective pension products, also abroad, will benefit the base of support for the Dutch pension system."
The merger was structured in a way that APG took a 51% controlling stake in Cordares, while Cordares sold its insurance concern to Loyalis, APG's subsidiary, in exchange for a 10% stake in Loyalis.
Adri van der Wurff, member of the executive board of APG Group, and former chairman of the Cordares board, said the merger had resulted in economies of scale and market advantages that would ultimately benefit the retirement provisions of millions of citizens.
Through its pension administrators, APG Algemene Pensioen Groep and Cordares, APG Group will offer management support, pension administration, asset management and pension communication for pension funds, while Loyalis will offer additional products for income security to employers and employees in the sectors of government and education, as well as energy and utility companies.
Cordares Verzekeringsgroep [Insurance] will cater to the construction and housing corporations sectors.
Outlining the advantages for pension funds, APG said its asset management company had worldwide access to the best market parties and all possible investment propositions at attractive conditions.
"Pension funds can profit from this combination of expertise, innovation, economies of scale and cost advantages," it claimed.
It also pointed to its scale, in combination with innovative techniques for asset and risk management, claiming its investment policy, when compared to banks and insurance companies, was not directed at profit maximisation for the company, but at promoting the collective stakeholders' interests.
Dick Sluimers, chairman of the board, said: "This exceptional pension system deserves an administrative organisation that is as strong as possible.
"Our group is committed to the modernisation of this pension system so that it remains attractive for future generations. The company mission is maintaining the vitality of a pension system based on collectivity and solidarity."
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.