Dutch Pension Fund PME Warns US Money Managers Over Trump Era Policies

The $65 billion Dutch pension fund PME has issued a warning to US money managers, expressing concern that they are abandoning their "basic principles of stewardship" during the Trump era. PME believes that US money managers are risking significant business by succumbing to pressures from President Donald Trump’s administration, which has led to a departure from responsible investing principles.

Daan Spaargaren, PME’s senior strategist for responsible investing, highlighted the fund's worries. "They aren’t condemning what Trump is doing and how he is operating and how he is handling issues like climate change and demolishing the judiciary. We are worried about that," Spaargaren stated. The pension fund is particularly concerned about Trump's actions, including attacks on judges, countering America’s move towards cleaner energies, and the removal of diversity, equity, and inclusion (DEI) policies.

PME is reconsidering its $5.7 billion mandate with BlackRock Inc., the world’s largest asset manager, after BlackRock withdrew from the Net Zero Asset Managers (NZAM) initiative. A decision from PME is expected within weeks. Spaargaren emphasized that if asset managers align their interests and policies with the current administration, they are effectively legitimizing these practices by offering their funds.

The pension fund's warning underscores a broader concern within the investment community about the potential long-term impacts of aligning with policies that may not prioritize responsible investing. PME's stance suggests that the fund is prepared to take significant steps to ensure that its investments are in line with its principles, even if it means reconsidering its relationships with major US money managers. This move could set a precedent for other institutional investors who are also concerned about the direction of US policy under the Trump administration.