The €2.5bn Rabobank Pensioenfonds (Rabobank) has undergone a significant transformation as it prepares for the Netherlands’ transition to a new pension system. It has transitioned from a collective defined contribution (CDC) to a pure DC model for new accruals. The shift aims to avoid duplication across the old CDC and new DC structures, instead maintaining a unified approach to investment.

Existing entitlements from the CDC scheme are expected to be transferred seamlessly to the new DC scheme, retaining the same investment mix but while still allowing its 99,000 members to make changes if they wish.

On the investment side, Rabobank has made changes to its equity portfolio to make it more sustainable and cost-effective by consolidating its 11 active equity managers into just two passive equity mandates. This is designed to reduce costs and enhance the sustainability of the pension fund. The changes reflect Rabobank’s long-term approach, which involves selectively using active management only when it can generate sustained outperformance or provide strong risk management.

It has also sought to prioritise long-term investments in renewable energy by reducing exposure to listed equities in favour of alternative assets such as infrastructure. This includes a €75m investment in a specialist climate infrastructure fund.

The strategic shift towards renewable energy aligns with the fund's commitment to long-term investments. The climate fund investment represents a commitment of 10-12 years, emphasising Rabobank’s dedication to sustainable and impactful investments in the context of the global energy transition. Within Rabobank’s infrastructure portfolio, 35% of assets are assessed to be impact investments such as renewable energy projects.

Rabobank maintains strong communications with its participants through regular surveys and other interactions. Surveys have allowed it to confirm members’ backing of certain decisions, such as the move into impact investments.