The article by Thijs Jochems in the latest edition of the financial investigator fits in well with our idea that Dutch pension funds and fiduciary managers more capital allocators to external asset managers than (direct) investors. Allocating to large (blue chip) asset managers from a reputational point of view is also what we observe in the market.
The risk of adverse selection is lurking here, with the focus not on the asset manager that best matches the investment beliefs and (strategic) goals of the pension fund, but on the asset manager where (perceived) reputational risk is smallest.
Small businesses are generally better able to integrate specific requirements and wishes of clients into their services than large molochs. It is a fact that the entire organization has not yet been set up as a large enterprise. Offering smaller Dutch asset managers the time, space and expertise to grow into a fully-fledged player at the international level is good for the Dutch asset management industry, the Dutch pension market and knowledge about asset management. The Netherlands really is and will have to remain the cradle of securities trading.
From “client intimacy”, the appointment of a small “emerging” asset manager that better matches the investment beliefs and the (strategic) goals of the pension fund is a good alternative for a blue chip asset manager. The pension fund must, however, be prepared to support the emerging asset manager, through ODD investigations or an appointed liaison, to get the organization to an institutional level. As a result, the pension fund keeps a grip on the asset manager, it is demonstrably in control and it also contributes to investments in the Netherlands. A matter of Noblesse oblige!