Dutch Pension Fund PME Warns of U.S. Industry's Potential Policy Shift

Dutch pension fund PME has issued a stern warning to American fund managers, expressing concerns that the U.S. investment industry may yield to pressures from the Trump administration and abandon fundamental management principles. The fund, which manages approximately 57 billion euros (65 billion dollars) in assets, is one of the largest in Europe to voice such apprehensions.

PME's senior investment strategist, Daan Spaargaren, clarified that the fund is not condemning the actions of the Trump administration or its approach to issues such as climate change and the impact on the judicial system. Instead, the fund is worried about the potential consequences of these pressures. Spaargaren stated that the fund is evaluating a 5 billion euro mandate with BlackRock, the world's largest asset management company, which had previously exited a key net-zero alliance. PME expects to make a decision on this in the coming weeks.

Spaargaren noted that PME has concluded that the existing benchmark framework for different asset managers—the old framework—is no longer effective. The Trump administration has been criticized for attacking the judiciary, obstructing the U.S. energy transition, and attempting to repeal diversity, equity, and inclusion policies, labeling them as "illegal."

Spaargaren described this as a political development that requires the investment industry to take a stance. He warned that if asset managers align their interests and policies with the current U.S. administration, PME's funding of these managers would legitimize these steps and actions.

Currently, PME is evaluating its next steps. Spaargaren stated that the fund's decision to continue investing in certain companies or retain existing external mandates will depend on the results of its revised review process. The fund is concerned that the U.S. investment industry may succumb to pressures from the Trump administration and abandon fundamental management principles, potentially leading to a loss of authorization in key markets.