Dutch pension policy blamed for losses
EUROPE - F&C Asset Management has cited a shift in Dutch pension fund policy as the main reason for the net €6.1bn withdrawn by clients in the last three months, according to media reports.
An article in The Times claimed F&C told its shareholders that clients had withdrawn a net amount of €6.1bn over the last three months and it expected to lose a further €5.5bn worth of mandates shortly.
Dutch pension funds that pass asset allocation decisions over to "fiduciary managers" has resulted in the break up of large balanced mandates.
These were just the type of mandates run by F&C, therefore the Dutch move to smaller, specialist houses has seen the firm lose out.
This type of shift has been witnessed also in the UK as pension funds reshuffle their structure and moved towards more specialist management.
In response to these claims, F&C explained it was not the shift towards specialist boutiques that presented a problem, but rather the trend by the Dutch to outsource investment decisions to a third party, such as a multimanager.
The firm lost a €1.5bn mandate from the Electricity Supply Pension Scheme after the pension plan switched the business to specialist property manager CB Richard Ellis.
According to The Times, F&C lost €43.1bn in mandates over the first three quarters of 2006.
Latest stories
Five stories you may have missed this week
The top stories this week were the High Court's decision to block the £12bn annuity transfer from Prudential to Rothesay Life, and a separate court ruling that 'raises the bar' for pension rectification exercises.
GMP equalisation now top priority for schemes
Guaranteed minimum pension (GMP) equalisation has soared to the top of pension schemes' to-do lists, with 58% stating it is a priority project, research from Equiniti has revealed.
Defined Contribution Conference: Register now
Professional Pensions is holding its defined contribution (DC) conference on 4 September.
Back to Top
Most read
