NETHERLANDS - Dutch asset managers are managing an ever-smaller share of local pension assets, APG Group said in its annual report today.
The pension fund manager for Dutch pension fund ABP and 31 others, said about two-thirds of the €850bn ($1.2trn) of Dutch pension assets are run by managers outside the Netherlands, mainly in London and New York. That compares to a third ten years ago.
APG spokesman Thijs Steger said this is directly connected to the regulations imposed on Dutch asset managers which face stricter regulations when managing local pension assets than their overseas counterparts.
APG chief investment officer added: "It is important that the playing field of the management of pension assets is equal to Dutch and foreign parties. Otherwise, it will be very difficult for Dutch pension managers."
APG today reported returns of 13.3% for 2010 on investments worth €272bn. The asset manager said the funding level for its 32 clients has improved but continues to be dogged by a volatile interest rate. Dutch pension liabilities are discounted against a rate that changes daily.
APG's CEO Dick Sluimers said: "Low funding ratios are cause of concern with regards to the tenability of our pension system, while funding ratios that are increasing give the impression that all problems will be resolved by themselves. Both are false conclusions. The Netherlands has a resilient pension system, but the measuring scale should do more justice to the long-term character of possessions and obligations of funds."
APG is owned by pension fund ABP, which announced its 2010 return of 13.5% last week. (Global Pensions; 11 May 2011)
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