Dutch asset manager NN Investment Partners and its subsidiary AZL can now begin operating their general pension fund (APF) after the regulator (DNB) handed out its fourth license.

The new vehicle can accommodate all types of pension arrangements, including directly insured plans, in four different ring-fenced, multi-client compartments, as well as spheres for individual schemes.

According to Arnout Korteweg, executive board member, the APF is speaking with “dozens” of pension funds that have shown an interest in joining.

He added that the new vehicle – named De Nationale APF – expected to win its first contracts by the end of this year.

On its website, it said the group compartments would be based on the funding level of participating schemes.

It will aim for an initial coverage ratio of the “lowest” group, enabling it to grant an indexation of 50%.

It said the highest-funded ring should expect full inflation compensation.

NN IP is to carry out fiduciary management in the new APF, while AZL will act as pensions administrator.

Korteweg said NN IP would charge participating pension funds 0.06% for its services and that external asset managers would directly settle their costs through returns.

He added that the cost of pensions provision would be €115 per active participant and include the costs of the APF’s pensions bureau.

The APF said it planned to apply an asset allocation split across a 50% return portfolio and similarly sized matching holdings for the lowest-funded compartment and use a 55%/45% ratio for best-funded group.

The Dutch regulator has already granted APF licenses to insurer Aegon and its subsidiary TKP Pensioen, Achmea subsidiary Centraal Beheer and insurer ASR.

Asset manager PGGM, insurer Delta Lloyd and company Unilever are still awaiting approval.

Unilever has said it wants to place its own pension funds only, Progress and Forward, into its APF. 

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