PGGM ILI Team

PGGM Investment Management

The Asset Management department within PGGM is tasked with the investment of the collective pension assets of PGGM’s pension fund clients, with the vast majority being accounted for by PFZW’s assets. Broadly speaking, the investment categories can be divided into public market and private market asset classes which make up about 75% and 25% of the asset mix respectively. Next to the investment teams primarily responsible for managing these asset classes, the Investment Management organisation contains Risk Management, Tax, Legal & Regulatory and Operational functions.

PGGM Private Markets

The ILI team is a front-office investment team within the Private Markets segment. The Private Markets segment focuses on non-listed investments with an equity(-like) return profile. Besides Insurance Linked Investments mandate managed by the ILI team, there is as well Private Real Estate, Private Equity, Infrastructure and Credit Risk Sharing.

Insurance Linked Investments

Over the last nineteen years, PGGM and PFZW have developed a world-leading position in this asset class which brings interesting risk-return characteristics and diversification to the overall portfolio of PFZW.

In the ILI strategy, the underlying risk is natural catastrophe. PGGM provides capital to leading (re-)insurance companies and takes the tail risk position. In turn the (re-)insurance companies can manage their risk exposure and capital needs. PGGM has a strong focus on risk sharing and alignment, not merely on risk transfer. PGGM has a philosophy of risk sharing in the underwriting capabilities of its partners and establishing long-term relationships. 

Dedicated ILI professionals

Carrying out our mandate requires a diverse set of skills and knowledge across various domains such as (re-)insurance, modelling, law and regulation, macroeconomics, research and sustainability. This is reflected in diverse backgrounds of the team, ranging from Actuarial, Physics Econometrics, and Finance to Catastrophe Risk modelling. With an average work experience of 11 years, the team has a great mix of junior professionals and experienced seniors, who contribute to ILI market not only via high quality investments, but also as consultants and speakers on various industry events and regulatory discussions. Many of our colleagues are recognised for their knowledge and experience by their peers, regulators as well as by the press.

Being a diverse team of 11 with 4 different nationalities and speaking several distinct languages, the team has a sound understanding of different geopolitical trends, cultures and customs. Clear assets such as the ILI mandate cover investments referencing loans all across the globe, requiring knowledge about local risks, business structures, regulation and future developments.

Other PGGM teams

In managing the ILI mandate the team is supported by various functions within PGGM:

• The Risk Analysis (“RA”) team, which is situated under the Chief Risk Officer (“CRO”) of PGGM Asset Management, provides a second line of defence function on the due diligence and analysis by the front office ILI team. The RA team reviews and provides an independent report for each investment proposal of the ILI team.
• The Operational Due Diligence (“ODD”) team, which is also part of the Risk department, analyses all material operational aspects of transactions, such as the processes and IT tooling for the selection and replenishment mechanism and identifying, claiming and verifying credit events, as well as the staffing of the relevant functions. This includes the role of the verification agent. The ODD focus is complementary to the review of the IRA team.
• Both the RA and the ODD team have the ability to escalate a proposal to a higher approval forum, in which the CRO has a veto right.
• Finally, the deal team is supported in each transaction by several other departments within PGGM, such as the Tax & Legal department, Compliance, and various back-office functions.
   

Interested in joining? Please find vacancies here.