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PFZW enters into risk sharing deal with Rabobank

20 March 2014

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Pensioenfonds Zorg en Welzijn (PFZW) has entered into a risk sharing transaction with Rabobank concerning a portfolio of corporate loans to help stimulate the Dutch economy.

The transaction refers to a portfolio of €3.2bn consisting of more than 500 corporate loans of which more than half is provided to Dutch companies.

The transaction offers PFZW access to a portfolio of credit risk that helps diversify its asset mix in an "efficient manner", the pension fund said.

PFZW also said that it expects to achieve a stable and robust long-term return through the transaction.

Jan-Willem van Oostveen, PFZW financial and investment policy manager, said: "We really appreciate to work together with banks that have established a good track record in corporate lending.

"As a pension fund we have gained access to assets in which we like to participate. This collaboration shows how Dutch pension funds and banks together can stimulate investments in the Dutch economy."

PFZW said that it has gained a lot of experience with similar risk sharing transactions since 2006, which have proven their added value for its return, even through the financial crisis.

For Rabobank, the transaction offers a reduction of the credit risk it holds regarding this underlying loan portfolio.

The reduction in capital required to be held by Rabobank can be re-used for new lending to Dutch companies.

Tanja Cuppen, Rabobank International chief financial risk officer, said: "This cooperation with PFZW shows that there are increasing opportunities for Dutch pension funds to participate in the financing of the Dutch economy."

First published 20.03.2014

monique_simpson@wilmington.co.uk