He knows of a number of other providers talking to foreign firms, but declined to be specific. IJmker believes APG’s choice for a foreign firm may stimulate other pension providers to do something similar. In Detailhandel’s case, the scheme outsourced its entire administration to Capgemini.Īccording to IJmker, APG’s choice for Festina is a pre-emptive move, preventing some funds to leave the firm out of lack of confidence in APG’s current system.
#APG PENSION SOFTWARE#
APG would buy admin software from Festina, but would remain the pension administrator for ABP, BpfBouw and six other pension funds.
However, APG’s decision is of a different nature. “When that happened, everyone also said ‘that’s daring!’.” He compared the move with Pensioenfonds Detailhandel’s choice for French firm Capgemini as its pension administrator in 2019. In a way, APG opting for Festina can be likened to a choice between an electric car and upgrading an old diesel-powered vehicle. It’s laudable that APG has opted for a new concept like this.” Capgemini The admin systems that providers built over the past decades are now outdated. He added: “It’s a step ahead that’s good for the Dutch market where choice had been limited until now. “I think its brave that APG, as the Netherlands’ largest pension provider, dares to start a cooperation with a foreign firm,” said Arno IJmker, managing partner at Quint, another pension consultancy. Maybe that will help them to conquer a share of the Dutch market.” “We will soon have quite a simple DC arrangement, possibly including some solidarity elements, with which foreign players do have experience. The upcoming switch to a DC system may, however, make things easier for foreign entrants, Bastian noted. He said: “In the past 10 years, almost no foreign provider has been successful in the Dutch market for pension administration.”
This is surprising but also refreshing.”Īt the same time, Bastian emphasised that APG is taking a risk by partnering up with a company without a track record in the Netherlands. In fact APG says ‘someone else can do it better than us’. To now switch to buying externally is a fundamental switch.
He said: “Up until now, APG has always built all its software in-house.
#APG PENSION UPGRADE#
APG needed a system upgrade as it will switch to a defined contribution (DC) setting upon implementing the new Dutch pensions contract.ĪPG’s move has taken Tobias Bastian, a partner at consultancy Sprenkels & Verschuren, by surprise. in protest to its investment in coal-powered plants.The “brave but risky” decision by the Netherlands’ largest pension asset manager APG to source software from Denmark’s Festina Finance for its new pension administration has surprised consultants.ĪPG announced this week it is in exclusive negotiations with Festina to buy a new system for its pension administration. It also urged them to communicate on their energy transition plans with long-term investors and take their “suggestions into careful consideration.”ĪPG had pulled out its interests in state utility Korea Electric Power Corp. Transforming them into low carbon businesses is critical to the goal of climate crisis mitigation,” said Park Yoo-kyung, APG’s Head of Responsible Investment & Governance Asia Pacific.ĪPG called upon the companies to evaluate their existing climate change strategies and carbon reduction targets to make sure they are “sufficiently ambitious.” “These companies are important to the Korean economy and the global supply chain. The letters have gone to Samsung Electronics, Hyundai Steel, SK hynix, SK C&C, LG Chem, LG Display, Lotte Chemical, POSCO Chemical, LG Uplus, and SK Telecom. The company on Thursday said it had sent letters to CEOs and chairs of 10 South Korean companies where the Amsterdam-based fund has stakes in to urge the carbon emitters of more ambitious climate and carbon cut strategies. APG Asset Management, a subsidiary of Dutch pension and Europe’s influential institutional investor APG with $712 billion under management, called South Korea’s big manufacturers including Samsung Electronics and LG Chem to commit more to reduce carbon emissions.
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