BlackRock loses US$17 billion mandate at Dutch pension fund PFZW

BlackRock has lost a mandate worth US$17 billion with one of the largest pension funds in the Netherlands, amid concerns the world’s biggest money manager isn’t acting in the best interests of clients when it comes to climate risk.

PFZW, which oversees about 250 billion euros (S$375.5 billion), will instead rely on Robeco, Man Numeric, Acadian, Lazard, Schroders, M&G, UBS and PGGM to oversee an equity portfolio worth some 50 billion euros, a spokesperson for the pensions manager told Bloomberg on Wednesday (Sep 3).

A BlackRock representative didn’t immediately respond to a request for comment. Dutch media outlet NRC Handelsblad reported earlier that PFZW was making changes to its approach to asset management that included dropping BlackRock.

PFZW is the latest asset owner to voice discontent with US money managers that have retreated from climate alliances amid an all-out assault on net-zero policies by the White House. PME, another Dutch pensions manager, told Bloomberg earlier this year it’s reviewing its mandate with BlackRock, valued at some 5 billion euros.

“PFZW has been developing a new investment strategy where financial performance, risk and sustainability are weighed equally within the framework of a total portfolio approach,” the fund said in an emailed comment.

Its mandate with BlackRock was valued at 14.5 billion euros as of the end of March, which is the latest period for which PFZW was able to provide a figure, the spokesperson said.

Dutch pension funds have been under pressure from a local nonprofit, Fossil Free Netherlands, to end their ties with BlackRock. The Break with BlackRock initiative asked savers to urge their pension funds to act, and thousands have done so, according to the nonprofit’s website.

BlackRock has in the past described itself as a “global leader” in sustainable and transition investing, and says it offers climate-focused clients in Europe products that deliver performance in line with their preferences. BLOOMBERG