Dutch private pension reform spells investment rethink of savings

Asset managers said the reform could spark outflows from eurozone government bonds in favour of riskier assets and change the way such funds protect themselves from swings in interest rates. — Bloomberg

AN overhaul of the private pensions system in the Netherlands – the biggest in the European Union – is leading asset managers there to rethink how they invest 1.5 trillion euros (US$1.64 trillion or RM7.7 trillion) of retirement savings.

Asset managers for top Dutch pension funds said the reform, which takes effect today, could spark outflows from eurozone government bonds in favour of riskier assets and change the way such funds protect themselves from swings in interest rates.