PFZW, one of Europe’s largest pension funds, has withdrawn approximately $16.4B (€14B) from BlackRock as part of a shift in its investment strategy that places equal weight on financial performance, risk, and sustainability.
The Dutch pension scheme, which manages $290.2B (€248B) on behalf of more than 3 million Dutch healthcare workers, announced it was ending a major contract with BlackRock and divesting from thousands of companies. The change follows an internal review conducted by PGGM, which manages most of PFZW’s assets. As of March 31, BlackRock managed approximately $16.98B (€14.5B) for PFZW.
In addition to BlackRock, PFZW also ended a $17.55B (€15B) mandate with Legal and General Investment Management.
As part of its broader strategy, PFZW has ended its passive approach to managing $58.5B (€50B) in stock investments, allowing for more flexible buying and selling decisions. The fund has significantly narrowed its portfolio, exiting positions in 2,600 companies and concentrating holdings in just 756 firms.
The pension fund has appointed Robeco, Man Numeric, Acadian, Lazard, M&G, Schroders, UBS, and PGGM to manage a total of $60.84B (€52B) in equity investments.
PFZW stated that it has always maintained its own voting policy but noted increasing difficulty in aligning with American asset managers on proxy-voting practices.
A report by Share Action released earlier this year found that BlackRock supported 4% of ESG resolutions at annual meetings in 2023, down from around 40% in 2021.
Other pension funds, including the $70.2B (€60B) Dutch industrial workers’ fund PME, have also reviewed their relationships with asset managers, including BlackRock.
Source: Financial Times and Reuters
