Being a best-in-class investor calls for more than just skilful asset management. It also requires proactively contributing ideas and providing insight into all facets of asset management for pension. For example, by always being transparent about return, risk and costs. We underscore the importance of a healthy financial sector and aim for stable and sustainable growth, in keeping with our clients’ ambitions.
Responsible investment means that we consciously take account of environmental, social and governance (ESG) factors in our investment activities. Our knowledge level in the area of responsible investment is high. We also hold a prominent role in this field worldwide. This contributes to excellent service towards our clients.
At PGGM, asset management is sub-divided into public and private markets. Public markets include shares in listed companies, for instance, while private markets could involve direct investments in infrastructure projects. Public markets, which we manage both actively and passively, account for the majority of our client portfolios. Within the public markets platform, we invest for our clients in asset classes such as listed shares, government bonds and corporate bonds.
Within the private markets platform, we actively invest in non-listed asset classes for our clients: private equity, private property, infrastructure, credit risk sharing transactions with banks, natural disaster risks and residential mortgages. We do this via mandates we give to external managers and increasingly through direct investments. Private investments help our clients to achieve higher and more stable investment yields and to realise a tangible impact on the real economy, including in the Netherlands. In the current financial markets, interest rates and returns are lower than in the past. These investments offer our clients a solution for this. Due to their long-term character, private investments are also a good fit with the longer investment horizon of pension funds. We also help our clients to contribute towards a liveable world. We do this by investing in e.g. rented care flats, wind farms, food producers and drinking water facilities.