Dutch pension funds back Robeco with over €1bn debt mandate

Dutch pension funds PMT and PME have appointed Robeco as manager of the €1.15bn (£994.3m) private corporate debt (PCD) mandate.

The mandate will address the financing needs of mid-sized Dutch and European companies, giving both pension funds access to a network of national and international banks and debt advisers through Robeco.

PME has committed €650m to the mandate, while PMT has committed €500m.

“In a time of significant change, PME is actively seeking new ways to support the European economy on behalf of our participants and employers,” said Alae Laghrich, chair of the executive board of PME. “While others are still debating the recommendations of Draghi and Wennink, PME is investing €650m in the European economy, with the Dutch manufacturing and high-tech sectors as key drivers.”

With this appointment, Robeco becomes the second manager of the PCD mandate for PMT and PME. Previously, MetLife Investment Management was appointed as manager for an initial investment of €650m on behalf of PME and €500m on behalf of PMT.

With the new €1.15bn investment, total investments in PCD on behalf of both funds will amount to approximately €2.3bn. The build-up of the new investment will be phased over a period of around two years, according to the Robeco.

“This €500m mandate awarded to Robeco contributes to strengthening the Dutch and European economies,” said Hartwig Liersch, director of investments at PMT. “PMT aims to increase investments in its own metals and engineering sector, both directly and through companies that form part of the broader ecosystem.”

Fiduciary asset manager MN is acting on behalf of the pension funds and selected Robeco as the most suitable overseer for the mandate, citing its close alignment with the sustainability ambitions of PMT and PME.

Robeco’s solution was jointly tailored with MN for the Dutch pension funds and complements the portfolio built by MetLife Investment Management.