BlackRock, LGIM Lose $34 Billion in Mandates from Dutch Pension Fund’s Shift to Sustainability & Active-Focused Investment Policy

Dutch pension fund PFZW has terminated external mandates worth roughly €29 billion (about $34 billion) with BlackRock and Legal & General Investment Management (LGIM), as it implements a revised investment policy emphasizing sustainability and active management, according to ESG Today. Reports also indicate PFZW did not renew its contract with AQR Capital Management.

In a statement to ESG Today, a PFZW spokesperson said the fund had been developing a new investment strategy in which financial performance, risk and sustainability are weighed equally within a total portfolio approach. Working with its pension fund manager PGGM, the fund completed manager selection in the first half of 2024 for the new listed equity and credit mandates under Investment Policy 2030. The spokesperson confirmed that "we did not renew our contract with Blackrock under our new investment strategy," though PFZW remains invested in a BlackRock money market fund. BlackRock's mandate was valued at over €14 billion earlier this year, and LGIM's at approximately €15 billion.

Under the policy, PFZW focuses on return, risk and sustainability. Its sustainability approach requires minimum standards to limit negative effects, targets companies contributing to the UN Sustainable Development Goals and Paris Agreement objectives, and focuses on measurable social value in climate, people and health, and nature and biodiversity. PGGM Head of Mandate Management Sander van Stijn wrote in a blog post that PFZW has significantly reduced its equity holdings to around 800 companies from approximately 3,500 under the more active approach. Van Stijn said the fund seeks managers who share its sustainability ambitions and stewardship focus, noting that "not all asset managers – particularly in the United States – share the same perspective." He cited a Paris Alignment score rising to 30% from 23% and carbon intensity of 73 versus 249 for the market index.

LGIM, which focuses primarily on passive solutions, said in a statement to ESG Today that its relationship with PGGM "remains as strong as ever across asset classes." A PGGM spokesperson said LGIM "was and still is a valued partner," managing a Euro IG mandate and serving as a joint venture partner in PGGM Private Real Estate. A BlackRock spokesperson said the firm noted PFZW's redemption in the first half of 2025 and cited its work for the fund's 3 million participants, adding that BlackRock manages over $1 trillion in sustainable and transition assets.

The move highlights the divergence facing global asset managers over ESG considerations, with U.S. political pressure leading some asset owners to exclude sustainability-focused managers while European investors often require a more active sustainability focus. Asset managers selected for PFZW's active equity strategy include Robeco, Man Numeric, Acadian, Lazard, M&G, Schroders, UBS and PGGM.