The assets of the DEPF are now invested by DuPont Capital Management (DCM), the internal organization that also manages pension capital for other DuPont schemes (for instance in the United States). As a part of the split of DowDuPont earlier this year, DCM became part of Corteva. As a result, it has become less logical that the DEPF will continue to co-operate with DCM in the future. That is why the board of the DEPF has investigated alternatives. The preference of the board is to have fiduciary asset management in order to be able to comply with future legislation and to achieve further professionalization of the asset management. Fiduciary asset management means that there is one party – the fiduciary manager – who selects, guides and controls a number of specialized asset managers.
Benefit from specialist knowledge
Nowadays, there are specialized asset managers for various investment categories such as equities or bonds. With fiduciary management we can benefit optimally from this specialized knowledge. The fiduciary manager guides the asset management on the basis of the investment strategy determined by the board of the DEPF. The board is and will always remain responsible for the investments.
Shortlist with two parties
The search for the fiduciary manager is led by the investment committee of the pension fund. The pension committees, the affiliated companies and the works councils of these companies are also involved in the process. The list of possible candidates for the role of fiduciary manager has meanwhile been narrowed down to two parties. Further discussions are held with these two parties and, where necessary, there are negotiations with the candidates to make sure that the DEPF gets the best possible offer. Ultimately, a choice is made based on the reactions received. The intention is to complete the process in the first quarter of 2020.
In the meantime, the pension assets remain under the management of DCM. Please read another article on the website to see the investment results that have so far been achieved in 2019.