Dutch pension fund chooses F&C as fiduciary manager

SBVD is the Dutch pension fund for workers in the paint and printing industries and has more than 5.000 members and over EURO125 million assets under management.

The appointment of F&C as fiduciary manager is an important new step in the existing relationship between both parties.

Under the new fiduciary management arrangement, F&C will provide the pension fund with a comprehensive package which will include strategic investment advice, portfolio construction, performance monitoring, risk management and reporting, all services tailor-made to SBVD's specific requirements. In addition to the existing services F&C provides, SBVD will have access to 'best in class' asset managers across all asset classes. This will allow all SBVD's members to benefit from the advantages of multi-management.

The uniqueness of F&C's multi-management proposition is the fact that there is no sacrosanctity. Investors have access to investment solutions managed by external and internal providers. Both external and internal managed are evaluated following the same objective criteria which are set by the client. For the selection and monitoring of external managers, F&C will use the services of a specialist manager selection provider.

Moreover, F&C will also apply its responsible engagement overlay programme (reo®) to the fund's entire portfolio, including assets managed by external managers.

Ben Kramer, Head of Distribution and Business Development at F&C Netherlands, said: "SBVD has been a client of F&C for many years and this appointment shows their confidence on our capabilities in the field of fiduciary management. We believe fiduciary management should be a proactive cooperation between the pension fund board, the consultant and the asset manager with the aim to design an investment strategy that meets the long-term objectives of the pension fund. As fiduciary manager, F&C will undertake those activities that the pension fund can't, or does not wish to perform in-house. In our opinion, our flexible approach is ideal for pension funds who want to remain independent but do not have all the resources needed to perform all the required tasks in-house."

Robert van Westerhoven, Chairman (employer side) of SBVD, said: "This is an important appointment for SBVD and we are looking forward to following this new route working closely with F&C as our fiduciary manager. This partnership will allow the board to focus its attention on strategic decisions. F&C will advice us on strategy and executes all tactical and operational activities related to the investment portfolio. Our goal is to achieve such investment returns that we not only can fulfil our current liabilities but also our ambitions with regards to indexation.

Over the last few years F&C has in many occasions given us advice on different investment opportunities. Our board members have benefited from the clear and expert explanations given by F&C staff during training sessions. As a result, the level of knowledge of our board, in particular regarding risk management, has increased significantly. We are looking forward to jointly work with F&C to further expand our risk management and multi-management capabilities."