Netherlands-based PZFW, one of the world’s largest pension funds, has dropped BlackRock from its roster of external managers, citing its desire to work with partners that have a strong commitment to responsible investment.
PZFW, which has €259 billion AUM, said it had issued new mandates following a selection process conducted last year. The pension fund said it had appointed external managers “who we believe are best placed” to carry out a mandate in line with its 2030 investment policy, which sets “a clear framework for responsible investing”.
US-based BlackRock did not appear on an accompanying list of managers, having previously been listed as managing €11.48 billion across two mandates. PGGM, PZFW’s in-house manager, will assume responsibility for its €50 billion equity portfolio, alongside Robeco, Schroders, Lazard, M&G, UBS, Acadian, and Man Numeric.
US asset managers have faced increasing difficulties in balancing the responsible investment priorities of European clients with a more hostile environment in the US. Collectively and individually, managers including BlackRock have been subject to court cases and legal threats for incorporating ESG factors into their investment processes and products.
Several US-based asset managers have withdrawn from industry initiatives with climate-related objectives. BlackRock is among the firms to have left the Net Zero Asset Managers initiative, but its UK-based BlackRock International unit has continued to participate in Climate Action 100+.
PFZW’s decision follows a campaign by Dutch pensioners encouraging Dutch pension funds to shift their investments away from US managers, called ‘Break with BlackRock’, to alternative providers which “embrace sustainability in word and deed”.
Earlier this year, UK-based pension provider The People’s Pension withdrew £28 billion from State Street Global Advisors, partly due to concerns over the strength of its stewardship capabilities on sustainability issues. Separately, more than 40 asset owners globally signed up to a climate stewardship statement in February outlining expectations of asset managers.
