BlackRock has lost a mandate worth €14.5bn as the Dutch Pension Fund for Healthcare and Welfare (PFZW) cuts the number of companies it invests in from around 3,500 to just 800 as part of a sweeping overhaul of its equity portfolio, aimed at improving sustainability oversight and returns.

The healthcare sector fund, one of the largest in the Netherlands, explained that holding thousands of index investments had previously left it exposed to reputational and operational risks when incidents occurred at companies that did not align with its long-term objectives.

Indeed, this follows recent research from The Centre for Research on Multinational Corporations (SOMO) that highlighted concerns over the growing influence of American asset managers in the Netherlands, raising particular questions over their influence on Dutch pension funds.

The firm’s new approach instead actively selects companies based on return, risk, and sustainability criteria, with the market index now serving as a benchmark rather than a starting point.

PFZW stressed that despite the reduction in holdings, the new portfolio maintains a risk profile comparable to the broader market.

PFZW has previously highlighted the positive climate impact of its investments and was the latest asset owner to voice discontent with the recent retreat from climate alliances by US managers.

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