Key Takeaways
- • Dutch pension fund PME, which manages around €59bn for steel and metal workers, is effectively divesting from BlackRock across its equity holdings, a mandate of roughly €5bn according to the headline.
- • PME will consolidate equity assets with MN and UBS, selecting fewer managers it views as more aligned with its climate beliefs, and expects a small saving on manager fees.
- • The move follows PFZW's September decision to sell some BlackRock holdings, part of a wider Dutch shift toward concentrated portfolios of aligned managers.
- • BlackRock says it manages more than €350bn for Dutch clients and reported a record EMEA year through Q3 with $129bn in net new business, nearly a quarter invested in sustainable funds.
- • Campaigners at Fossielvrij Nederland are now targeting ABP, the largest Dutch and European pension fund with €520bn in assets, which still holds BlackRock equity and emerging market debt mandates.
Summary
Dutch pension fund PME, which invests around €59bn on behalf of steel and metal workers in the Netherlands, has announced an overhaul of its equity portfolio that results in the effective divestment from BlackRock across all its equity holdings, according to a statement the fund released on Monday. Rather than retain the US manager, PME will expand existing commitments with Dutch manager MN and Swiss firm UBS, with the aim of selecting a smaller group of asset managers more aligned with its climate beliefs.
PME said the strategy is designed to invest for a good pension through a deliberate selection of companies, with a limited number of stocks to improve understanding of its investments and achieve a better balance between risk, return and sustainability. The fund stated that the changes would not affect its risk and return expectations and anticipates a small saving on manager fees from the reduced number of managers. PME currently holds about 37% of its overall portfolio (around €22bn) in equities and 52% in fixed income. The restructuring comes ahead of the planned transition of the Netherlands' defined benefit funds into a new pension system, which will turn funds such as PME into collective defined contribution funds from January 2027.
The decision echoes PFZW's September announcement that it would sell some holdings in BlackRock and other managers as part of a broader move toward a concentrated portfolio of aligned managers. PME had faced sustained pressure from climate campaigners to end its relationship with BlackRock. The manager, whose CEO Larry Fink once described climate risk as an investment risk, has in recent months distanced itself from public climate advocacy amid political and legal backlash in the US. In January, BlackRock, which manages €13.5bn in assets in the context of the article, confirmed its departure from the Net Zero Asset Managers Initiative, which suspended its activities shortly after. Research by Reclaim Finance cited in the report found BlackRock continues to invest in renewable infrastructure but increased its investments in new bonds issued by fossil fuel producers by nearly $1bn over the past year.
A BlackRock spokesperson told Net Zero Investor that the firm continues to manage more than €350bn for Dutch clients and is proud to continue growing in the country. The spokesperson said BlackRock has been entrusted to manage more sustainable and transition assets than any other asset manager, and that its EMEA business reported a record year through Q3 with some $129bn in net new business, nearly a quarter of which went into sustainable funds.
Climate campaigners welcomed the decision, having lobbied for divestment from large US managers including BlackRock and State Street. More than 2,000 Dutch pensioners signed a public letter from Fossielvrij Nederland urging their funds, including PME, to divest from BlackRock. Hiske Arts, campaign lead at the group's Break with BlackRock campaign, said PME had made a wise decision and criticized BlackRock for votes against climate resolutions and continued fossil fuel investment. The campaign is now turning to ABP, the largest pension fund in the Netherlands and Europe with combined assets of €520bn, which remains invested with BlackRock in some equity and emerging market debt holdings.
PME said the strategy is designed to invest for a good pension through a deliberate selection of companies, with a limited number of stocks to improve understanding of its investments and achieve a better balance between risk, return and sustainability. The fund stated that the changes would not affect its risk and return expectations and anticipates a small saving on manager fees from the reduced number of managers. PME currently holds about 37% of its overall portfolio (around €22bn) in equities and 52% in fixed income. The restructuring comes ahead of the planned transition of the Netherlands' defined benefit funds into a new pension system, which will turn funds such as PME into collective defined contribution funds from January 2027.
The decision echoes PFZW's September announcement that it would sell some holdings in BlackRock and other managers as part of a broader move toward a concentrated portfolio of aligned managers. PME had faced sustained pressure from climate campaigners to end its relationship with BlackRock. The manager, whose CEO Larry Fink once described climate risk as an investment risk, has in recent months distanced itself from public climate advocacy amid political and legal backlash in the US. In January, BlackRock, which manages €13.5bn in assets in the context of the article, confirmed its departure from the Net Zero Asset Managers Initiative, which suspended its activities shortly after. Research by Reclaim Finance cited in the report found BlackRock continues to invest in renewable infrastructure but increased its investments in new bonds issued by fossil fuel producers by nearly $1bn over the past year.
A BlackRock spokesperson told Net Zero Investor that the firm continues to manage more than €350bn for Dutch clients and is proud to continue growing in the country. The spokesperson said BlackRock has been entrusted to manage more sustainable and transition assets than any other asset manager, and that its EMEA business reported a record year through Q3 with some $129bn in net new business, nearly a quarter of which went into sustainable funds.
Climate campaigners welcomed the decision, having lobbied for divestment from large US managers including BlackRock and State Street. More than 2,000 Dutch pensioners signed a public letter from Fossielvrij Nederland urging their funds, including PME, to divest from BlackRock. Hiske Arts, campaign lead at the group's Break with BlackRock campaign, said PME had made a wise decision and criticized BlackRock for votes against climate resolutions and continued fossil fuel investment. The campaign is now turning to ABP, the largest pension fund in the Netherlands and Europe with combined assets of €520bn, which remains invested with BlackRock in some equity and emerging market debt holdings.
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