The standards for reporting on mission, vision and strategy are being ‘well observed’ by more than nine in 10 (92 per cent) Dutch pension funds, the Pension Fund Code Monitoring Committee has found.

However, the way pension funds report on their strategies varies, with the Monitoring Committee noting that this reflects the great diversity between pension funds.

The research for the compliance report, which was conducted by SEO Economic Research, showed that pension funds generally consult with many, primarily internal, parties.

However, it also found that there was not always a truly structured stakeholder dialogue, with the Monitoring Committee recommending the conduction of stakeholder analysis on a regular basis.

“That helps determine with whom, [and] with what purpose and depth the dialogue is being conducted,” stated Monitoring Committee chair, Yvonne van Rooy.

Meanwhile, in its annual report on diversity, the Monitoring Committee found that more than 80 pension funds have two or more women on their boards.

Together, these pension funds account for more than 90 per cent of pension fund participants and more than 90 per cent of assets under management.

Despite this, the committee warned that too many funds still neither have a woman or a young person on their boards.

“This absolutely has to improve, all the more so because a diverse board contributes to a better quality of decision-making,” said Van Rooy.

The Dutch Pension Federation is holding discussions with pension fund boards that do not yet have a sufficiently diverse composition, something that the Monitoring Committee emphasised their appreciation for.

“A board of a pension fund makes considerations and takes decisions about different generations,” said Pension Federation chair, Ger Jaarsma.

“It is therefore good that different perspectives are involved in these decisions, that account is taken of the various participant groups and that all interests are properly weighed up.

“A board consisting of a diverse composition can do this more easily than a group of directors who are very similar.

“That is why the Pension Federation considers it important that pension fund boards have a diverse composition.”

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