NETHERLANDS - Prudential M&G, the UK and European institutional fund management of Prudential Group, has launched into the Dutch institutional market at a time when pension funds are being forced to take a second look at their investment strategies. The firm has hired Eduard van Gelderen as director of fixed income - based in new offices in Rotterdam - to lead the expansion.
Van Gelderen has 13 years’ experience working with Dutch institutional clients and was formerly chief investment officer of NIB Capital Asset Management and managing director of fixed income for ABP Investments.
He reports to Bernard Abrahamsen, Prudential M&G’s director of fixed income in London.
Commenting on the move, Abrahamsen said: “By combining Eduard’s detailed understanding of fixed income and the issues affecting the Dutch marketplace, with the experience of one of the largest credit teams in Europe, our aim is to provide institutional clients in the Netherlands with a broader range of investment solutions.”
Last month, the IMF (International Monetary Fund) warned that the financial losses on pension fund assets will have macroeconomic consequences for the Dutch economy and called for a strengthening of second pillar funding.
According to the IMF, the problems stem from the high allocation to equities that many funds have developed over the last few years and the subsequent downturn in world equity markets. In times of economic downturn, companies are forced to contribute more to make up the losses, thereby exacerbating the cycle.
Pension funds are also under pressure from the Dutch insurance and pension supervisor (PVK) who have stipulated that the funding ratio must remain at or above 105%.
“The Dutch institutional market is currently reassessing the concepts of ALM and investment strategy,” said Van Gelderen.
Prudential M&G boasts a 67-strong fixed income team which includes 19 fund managers and 28 credit analysts.
The firm has some £60bn of fixed income assets under management on a pan-European basis, specialising in institutional fixed income, pooled pension funds and private finance.
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