by Atholl Simpson on Jul 02, 2010 at 14:49

Pension funds in the Netherlands have radically increased their use of external fund managers, causing total assets under management in Dutch mutual funds to nearly double in 2009, according to the latest report from Dutch pensions regulator De Nederlandsche Bank (DNB).

According to the report, the bulk of this increase came from several major pension funds which deposited €174 billion into mutual funds which they had previously been managing internally.

As a result of this unusually high increase in assets in 2009, the Dutch funds industry leapt to fifth position in the eurozone with total assets of just under €400 billion,.

The report also revealed pension funds there have slashed in-house fund management by almost a third in the last few years.

In 2002, pension funds managed around 40% of their own investments which fell sharply to only 10% in 2009. The DNB said most of the assets are now in pooled funds, which now hold more than €330 billion of pension assets.