Our latest PGGM’s Private Equity Responsible Investment Report 2020 describes our effort to improve the quality of ESG reporting by our General Partners, says Christine Winslow.
We invest the collective pension assets cost-efficiently. We attune the investment policy to the wishes of our clients, with attention to a good financial and socially responsible return and rigorous risk management.
Fiduciary management and advice supports our clients in their role as principal, both with advice and subsequent implementation. We provide advice on, among other things, the implementation of the strategic investment policy and management matters such as selection and monitoring of external managers.
We have in-house experts who can share their knowledge and insights with you and advise on all aspects of asset management, such as: all investment markets, risk management, legal and tax aspects and liquidity management. We respond proactively and quickly to new developments in the external market or to questions from the client.
Periodic and independent review
We periodically check whether the implementation is still in accordance with the agreed guidelines and whether the quality is at the desired level. We continuously check whether the composition of our clients' portfolios is still appropriate.
Clear and current reports
PGGM is transparent about the results to be realised. For each part of your investment portfolio you will be informed in advance of their expected contribution to your objectives. Afterwards, you will receive a report in which PGGM accounts for the results achieved. In this way you always have insight into your portfolio, you can see whether we deliver what you require, and you can make adjustments in good time.
Own client team
All our clients have their own client team. The client teams consist of various experts in the field of strategy, performance, risk management and investments. For example, we coordinate the total service provision for each pension fund. The account manager is a substantively qualified sparring partner for the board, the investment committee and, if applicable, the administrative office.
Risk management is an important part of responsible asset management. We check whether our clients' investment policies are properly implemented and ensure that all internal and external regulations are strictly adhered to. We also assess whether the investment policy matches the ambition of the pension fund and the risk appetite of the participants. We also identify all risks.
The administration activities relating to the implementation itself are: the management of derivatives portfolios and the selection and monitoring of external managers and risk management. For a significant portion of the investments, we perform the asset management ourselves within PGGM.
We make sure that our clients have a good understanding of all aspects of asset management. We think it is very important to be accountable for our implementation. That is why we always offer transparency in areas such as costs, risks and processes. Due to the importance of transparency for a healthy financial sector and a sustainable pension system, we also actively promote this interest and play a pioneering role in this area.
Pension assets are managed on the basis of mandates given to us by our clients. We strive for optimal implementation within the framework of these mandates. To achieve an efficient implementation, we use a central trading desk.
Continuity and flexibility
We offer continuity and flexibility through our expertise and the size of the assets we manage (approximately EUR 252 billion). Our clients have access to internal and external management, active and passive management, discretionary management and pooled mandates. In addition, our clients can invest in many different investment categories.
We are a cooperative investor and advocate a fair price, based on our cooperative philosophy. We aim for a modest margin on top of the cost of our services. PGGM operates on a non-profit basis but wants to use this margin to finance the necessary investments, which in turn benefit our clients.
Helsinki, Fortum has agreed to sell its 50% holding in Stockholm Exergi Holding AB (the “Company” or “Stockholm Exergi”) to a group of long-term European institutional investors with a strong commitment to the infrastructure sector comprising APG, PGGM, Alecta, Keva and AXA IM Alts (together, the “Consortium”).
Measuring and explaining the impact of investments is rapidly increasing in importance, explained Geraldine Leegwater at the presentation of the PGGM Asset Management Annual Report 2020.
As an asset manager for pension funds, we support our clients in the performance of their primary mandate: to provide for good and robust pensions for their participants.
Within this core task, we devote special attention to responsible investment, based on the conviction that this contributes to better risk management.
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