Asset Management: let us help you put your investment portfolio together

We provide the expertise, you make the decisions. And you always have an overview of your assets.

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    Advice

    Utilise our expertise and let us help you put your investment portfolio together. You decide your own policy. We provide the expertise.

    Advice
    You decide your own investment policy, we provide the expertise to arrive at the policy. An extremely expert team of investment strategists is happy to assist you!

    Strategic advice tailored to your situation
    You decide on the investment policy, we guide and advise you on realising the policy. The strategic allocation of the assets to be invested in the various investment categories and regions and advice on the interest and inflation hedging policy constitute the basis of the investment policy and the ultimate investment portfolio. This is documented in a client-specific investment plan. The starting point for the portfolio construction process is your ALM assignment, the preconditions and your preferences in this regard. We advise a strategic allocation on the basis of various analyses. In addition to investment cases and economic forecasts, we also use qualitative analyses and qualitative considerations on the portfolio level.

    ​Focus on return, keeping an eye on risks
    The strategic allocation, the spread of the assets to be invested in the various investment categories and regions, is the foundation of the investment policy and of your final investment portfolio. This must ultimately produce an adequate return, but at the same time the risks must be kept within the agreed frameworks. It is precisely because of the trade-off between risk and expected return that your preferences are determined annually.

     
    A high and stable return
    The investment objective is to put together an investment portfolio that generates as high and stable a return as possible in the long term and is consistent with your risk preference. In this objective, the term stability not only means lowering volatility, it also means cushioning the losses when markets decline significantly. This robustness is essential in today’s highly uncertain circumstances in the economy and on financial markets.
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    Fiduciary

    We work with you to put together a strategic investment plan and advise you on implementing this plan. Tests and reports give you insight into our work.

    ​Fiduciary
    The fiduciary advises on the implementation of your investment policy. The key question here is: “what is the most suitable implementation form given your investment policy and your investment beliefs?”

     
    An independent implementation proposal
    Based on your investment plan, an implementation proposal is prepared for your investment portfolio. With reference to clear frameworks and investing guidelines, independent, transparent and substantiated advice is given on the desired implementation of your future portfolio. Depending on the investment category, attention is devoted to, among other things, the following aspects:
    • any preference for active versus passive management
    • any preference for segregated accounts versus pooled solutions
    • the desired investment style and investment strategy to be pursued
     
    Periodic and independent testing
    We test whether the implementation is taking place in line with the guidelines agreed on with you and assess whether the quality of the implementation proposal is at the desired level. We continuously monitor whether the composition of your portfolio is still appropriate.

    ​Clear and up-to-date reports
    We are transparent about the results to be achieved. We indicate in advance how each particular component of your investment portfolio is expected to contribute to your investment objective. We report on this after the fact. You always have insight into your portfolio. We discuss all aspects concerning your investments so that you can make a careful consideration. You can adjust course on time. You can see whether an investment is doing what it is supposed to do and you can intervene or adjust course if necessary.

    Dedicated client service
    Our clients can expect quality and stability in our service provision. In order to provide that, we put together your own client team. This client team comprises various experts in the areas of strategy, performance, risk management and investments. This means that PGGM’s total service provision is tailored to your pension fund. Your account manager is a substantively qualified sparring partner for your board, investment committee, and if applicable, your administrative office.
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    Implementation

    We manage your assets in the manner you request. You tell us what you want to invest in and what you do not want to invest in. We are a frontrunner in the Netherlands when it comes to responsible investing.

    ​Implementation
    We manage your pension assets for you based on your investment plan and as set down in the implementation proposal agreed on with you.
     
    Economies of scale and access to broad expertise
    The size of the assets we manage, in excess of approximately 205 billion euros, and our expertise ensure that we provide you continuity. We provide you access to internal and external management, active and passive management, discretionary management and pooled mandates. You have the opportunity to invest in many different asset classes, consisting of both liquid and illiquid investment categories. Thanks to PGGM’s economies of scale, you can expect excellent service provision from us at an attractive price. 
     
    Access to unique investment opportunities
    We believe in investing for the long term. Alternative investments play a key distinguishing and supplementary role. This investment opportunity makes us unique in the pension world.

    We offer you access to the required economies of scale and expertise that we have in stock, in order to be able to move into these alternative investments. These investments have contributed significantly to a higher and more stable return over the past decade. As a client of PGGM, you have direct access to unique investment opportunities in Private Equity, Infrastructure, Private Real Estate and Hedge Funds.

    ​Responsible investing pays
    PGGM is convinced that financial and social returns can go hand in hand. That is why responsible investing is an integral part of the implementation we do for our clients. This means that we deliberately take ESG (Environment, Social and Governance) factors into account in our investing activities.

    The policy and implementation framework for responsible investing consists of five starting points:

    • Our actions are guided by the belief that financial and social returns can go hand in hand.
    • We make responsible choices based on our identity and that of our clients.
    • We contribute to the quality and continuity of businesses and of the financial markets.
    • We encourage partners in the financial sector to invest responsibly.
    • We report on our goals, activities and results in relation to responsible investing.
    Read more:
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    Risk management

    If you know what risks there are, you will be able to react in time. We will monitor the implementation of your investment policy and ensure the regulatory framework is complied with meticulously.

    Risk management
    PGGM ensures you are in control through integral risk management. We assess whether your investment policy is being successfully implemented and check whether it corresponds to the ambitions of your fund and the risk-taking propensity of your participants.

    Balance sheet risk management
    PGGM considers all the risks to which your balance sheet is exposed, including the investment risks and your obligations. We express the balance sheet risk in terms of the funding ratio. In so doing, we make a distinction between the short and the long term. In addition to estimating risks, we also assess the financial implications of a number of stress scenarios. Hereby, we not only look at historical events, but also at potential new events which may have an impact on your investments and obligations.
     
    Independent monitoring
    The monitoring and analysing of your investment portfolio is carried out by the risk management department independently of the front office. Moreover, PGGM has made a conscious decision to have the Chief Risk Officer Investments report independently and directly to PGGM’s Chief Risk & Financial Officer.

    In this way, our risk managers can directly provide their clients with an independent opinion of, for example:

    • the risks of the strategic policy recommendations
    • the risks in relation to the selection of managers
    • the risks in relation to the execution of the asset management

    Risk management across the entire board
    We check whether all the internal and external rules and regulations are being compiled with. Subsequently, by means of process audits and reviews, we test whether the internal procedures and process descriptions are being adhered to. Furthermore, we pro-actively identify potential risks making use of Risk Self Assessments, Risk Process Reviews, incident management and key risk indicators. Subsequently, we conduct independent operational audits. In respect of asset management, PGGM has an ISAE 3402 type 2 report containing a management declaration and a clean report from the external auditor.
     
    Risk Manager of the year
    The authoritative British Risk Magazine was impressed, and appointed us from London, as ‘a worldwide forerunner',' to be the Best Fund Risk Manager 2013. Here you can follow how we give meaning to this.

PGGM is convinced that financial and social returns can go hand in hand.

​PGGM is convinced that financial and social returns can go hand in hand. That is why responsible investing is an integral part of the implementation we do for our clients. This means that we deliberately take ESG (Environment, Social and Governance) factors into account in our investing activities.
 
The responsible investing activities are divided into six pillars.

1. Integration of ESG in the investing processes
The environment, social aspects and the quality of corporate governance can affect our clients’ return on investment. Conversely, the investments, the businesses and projects in which we invest also have an impact on the world. That is why PGGM is convinced that taking ESG factors into account contributes to good risk management and can ensure that achieving financial returns goes hand in hand with sustainable social improvements.
 
2. Investments with ESG impact
Targeted ESG investments are investments that not only contribute financially to the portfolio’s return, but that also intend to create social added value.
 
Active shareholdership
3. Voting
The voting right is one of the most important rights of a shareholder. That is why we vote based on our own opinion at shareholder meetings. Consequently, we contribute to good corporate governance. PGGM explains its voting per company via a special website, ‘Proxy voting’, with search functionality. 

Statement compliance Dutch Corporate Governance Code

 

​4. Engagement
As an investor, we see it as our responsibility to confront companies and market parties about their policy and activities. With this, we try to realise improvements relating to the environment, society and corporate governance (ESG) based on our view that this ultimately contributes to a better society and/or financial return on our investments.

5. Legal proceedings
In order to recover investment losses and enforce good corporate governance, PGGM conducts legal proceedings for its clients when necessary. We do that as a shareholder in listed companies, both in the Netherlands and in other countries. 

See our quarterly reports
 

6. Exclusions
PGGM wants to avoid making investments that are not appropriate for us or our clients. That is why we do not invest in controversial weapons or in the production of tabacco. We can also exclude investments in companies and/or countries (government bonds) if they violate human rights or cause serious environmental pollution, for instance.


See our exclusions

 
Responsible Investment Annual reports

See our annual reports
 

We provide the expertise, you make the decisions

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Do you have a question?

Adriaan Vermeulen

Adriaan Vermeulen

Director Institutional Relations

a.vermeulen@pggm.nl

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