Robeco wins $18bn Dutch pension mandate

International asset manager Robeco has announced the acquisition of €15.4 billion in investment mandates from pension investor PGGM, on behalf of the Dutch pension fund PFZW. This development is part of PFZW’s strategic transition from a passive investment approach to one that prioritises sustainability and active management.

Under the new Investment Policy 2030, PFZW’s strategy is structured around three core pillars: return, risk, and sustainability. The fund’s sustainability mandate necessitates that investments adhere to minimum standards aimed at mitigating negative impacts. It targets companies contributing to the United Nations Sustainable Development Goals (SDGs) and the objectives of the Paris Agreement, with a focus on generating measurable social value in key areas such as climate, people and health, and biodiversity.

This announcement comes in the wake of PFZW’s decision not to renew a €14 billion mandate with BlackRock, a move linked to BlackRock’s voting record on sustainability issues. Similarly, LGIM lost a €15 billion mandate due to its emphasis on passive investment solutions.

The mandates awarded to Robeco include €11.7 billion for the 3D Systematic Equity Robeco strategy, which employs a bottom-up investment process based on company-specific characteristics, balancing return, risk, and sustainability. Additionally, €3.7 billion was allocated to the 3D Credit Robeco strategy, which focuses on actively managing a diversified credit portfolio using a similar bottom-up approach. These solutions were co-developed with PGGM.

Robeco emphasised its investment capabilities and sustainability expertise as crucial factors in securing these mandates. The firm utilised its proprietary Sustainability IP, including the SDG Framework and Climate Traffic Light, to define an investible universe and provide transparency regarding the funds’ holdings.

Robeco also noted that engaging with portfolio companies is integral to shaping the strategies’ investment universe, aiming to identify and invest in companies with the potential to enhance their sustainability credentials. The company anticipates growing demand for such solutions.

Carola van Lamoen, Head of Sustainable Investing at Robeco, remarked, “These mandates reflect our shared belief with PGGM and PFZW in the importance of balancing risk, return, and sustainability. By integrating our proprietary Sustainable Investing frameworks and active engagement into both systematic equity and credit strategies, we aim to deliver robust investment solutions that support long-term value creation and positive impact.”