Russell Investments is the new fiduciary manager of Nestlé’s Dutch pension fund, following the Swiss food and drink company’s decision to cut its in-house division last year.
Russell has been running the $702 million Pensioenfonds Alliance investment portfolio since May, Pensioen Pro confirmed. In Pensioenfonds Alliance’s 2017 annual report, the business chose to ditch its internal fiduciary manager, Nestlé Capital Advisors. Nestlé also axed its in-house UK investment manager, Nestlé Capital Management, in March.
In addition, the company’s Ireland-based investment division, known as “Robusta,” has been delisted from the Irish Stock Exchange since last August. BlackRock has been running that division since May 2017.
It is not known if the Swiss-based Nestlé’s Capital Alliance is still in existence, despite Switzerland’s company register, Zefix, listing the fiduciary branch as operational.
Alliance’s board nixed alternative fixed income investment plans as a result of the in-house removal, instead moving the money to corporate bonds. The fund, which also runs the benefits plans for Nespresso Nederlands and pharmaceutical company Galderma Benelux, also wants to increase its interest rate hedge from 45% to 75% of pension liabilities as part of a de-risking strategy.
Pensioenfonds Alliance is 111% funded, according to the plan’s annual report.
Nestlé has $130.8 billion in assets as of December 31, 2017.