In focus: Numeric, Acadian and Robeco among the managers benefiting from PGGM’s investment overhaul
Earlier this month, Dutch pension giant PGGM made headlines with a major shift in its equity portfolio, moving towards a more concentrated, actively managed approach. Which managers have been awarded mandates?
PGGM, the €248.5bn investment manager for PFZW, the pension fund for the Dutch care sector, announced earlier this year a significant overhaul of its equities strategy. Nearly €30bn has been reallocated from existing managers as part of the move to a more concentrated portfolio.
The shift is aligned with PGGM’s so-called “3D” investment beliefs, which aim to give equal weight to return, risk and sustainability. As part of the transition, the number of holdings has been reduced from around 3,500 to approximately 800 companies. “We are taking on slightly more active risk, with tracking error increasing from 1% to 1.25%, but this is a conscious decision aimed at making the portfolio more sustainable and resilient,” PGGM said.
A number of asset managers have now been awarded new mandates, according to disclosures on PGGM’s website. The new line-up combines smaller fundamental mandates with systematic strategies designed to improve diversification.
Systematic equity managers
Systematic firms, which screen the global equity universe using sustainability scores, will manage large portions of PGGM’s equity allocation.
Numeric, the Boston-based quantitative stock selection specialist owned by Man Group, has been appointed to run €11.59bn through a bottom-up stock-picking process.
Robeco, the Rotterdam-based asset manager, has been awarded an €11.68bn mandate, also built on systematic, bottom-up stock selection.
Acadian Asset Management, a global specialist in systematic equity strategies, has secured an €11.5bn mandate.
Fundamental managers
Alongside the systematic allocations, PGGM has also appointed several fundamental managers to run more concentrated portfolios built on in-depth company research. The key premise behind this approach is to gain a better understanding of the underlying investee companies, the pension fund said: "Our guiding principle is to ‘know what you own’. This allows us to make more informed choices, such as selecting companies that are leading the energy transition or those that are not yet at the forefront but are taking credible steps forward, the so-called ‘improvers’" the pension fund said in a statement. Four managers stand to benefit from this new approach:
Schroders: awarded a €3.9bn equity mandate focused on stronger alignment with the Paris climate goals.
Lazard: appointed to manage a €2.5bn bottom-up fundamental equity mandate.
M&G: given a €2.5bn mandate loosely based on its Positive Impact fund, which invests in companies such as Schneider Electric, India’s HDFC Bank and Ireland’s Johnson Controls.
UBS: tasked with managing a €3.8bn fundamental equity mandate.
Credit strategy overhaul
PGGM has also restructured its credit portfolio, awarding new mandates to:
PGIM: €1.8bn
Robeco: €3.7bn
Abrdn: €3.6bn
T. Rowe Price: €1.8bn
PGGM’s renewed commitment to active management marks a notable shift in the Dutch pensions landscape. The industry is currently undergoing a sweeping reform, with Defined Benefit schemes transitioning to Collective Defined Contribution arrangements by January 2028. In contrast, ABP, the Netherlands' largest public sector pension fund has announced a shift towards passive investing across its listed assets some two years ago.
