Dublin-based KBC Asset Management has been asked to manage part of the New York City police department pension fund.

The officers of the fund have asked KBC to manage $8 million (€6.25 million) worth of funds. This is the first time any US police pension fund has been invested outside the US.

KBC Asset Management's Dublin team, which specialises in high dividend and international equity products, established a New York office in 2004 and since then has built up US assets under management of almost $100 million (€78 million).

The contract was won by the international team which reports to the Dublin office, although it operates from an office in New York.

Commenting on the latest mandate win, Seán Hawkshaw, chief executive of KBC Asset Management, said: "Though the initial quantum is modest we are delighted to have won such a high-profile mandate as it vindicates KBC's global strategy of building up centres of investment excellence in various locations around Europe. The expertise built up in Dublin is now producing results."

Mr Hawkshaw added: "The level of interest that was shown during a recent series of presentations we made in various locations in the States left me very confident that we will be securing a number of new mandates over the coming months."

The New York City police pension fund has $15.8 billion under management and is one of the top 100 pension funds in the US by size. KBC Asset Management in Dublin has assets under management of €15 billion.

KBC Asset Management's parent, the Belgian-based KBC Group, has offices in more than 30 countries and has €150 billion under management.

Pensions is currently a high-profile issue in the US with the pension schemes of many large companies and federally funded bodies in deficit. There has also been a major move away from defined benefit plans.

Defined-benefit plans have shrunk from more than 112,000 in 1985 to fewer than 30,000.